MyBank and banking on Banks. Why the Current account is the killer app for digital commerce and identity

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1 MyBank and banking on Banks. Why the Current account is the killer app for digital commerce and identity While there are many exciting activities emerging the FinTech, the majority of people still want to use their bank account to pay, and their bank to store their personal information. This idea, has become so out of fashion, that it is once again radical! What has been missing until recently is a way to link the bank account to real-time information service for merchants, utility companies and public authorities. MyBank make that link, allowing consumer to make payments, sign direct debits and prove their identity, using their banking and without giving their personal information to others v MyBank is owned by Preta S.A.S, a wholly owned subsidiary of EBA CLEARING John Broxis Managing Director j.broxis@mybank.eu

2 European E-commerce is successful, but can we do better?

3 On the internet (and via mobile) Trust is a problem. How do we prove who we are? How are we sure that the person we are dealing with is who they say they are? Imagine the power we could unlock if we could get our bank to authenticate our payments and authenticate who we are in real-time, using our bank account.

4 MyBank MyBank provides a real-time experience through multiple channels: Payments Mandates (Core and B2B) Identity Validation services Video

5 The Challenges and drivers for change Technology and new entrants Customer Expectations Fraud. Trust. Privacy Regulation

6 Features of new payment methods SIMPLE no registration no value limit real time a single, familiar user experience for all Europe universal SAFE AND TRUSTED no sensitive data shared with third parties payment is initiated from the Account Bank. Secure MULTI-PURPOSE - BEYOND PAYMENTS flexibile payments (fixed amount, variable amount, recurring) Identity Verification Account opening Customer Due Diligence Also cheap to implement. Re-use existing infrastructure.

7 Large Value Customer Due Diligence Age compliance Bank trusted Logon Contract sign up

8 Industry collaboration for a service infrastructure SEPA 2.0 / E-SEPA Digital Service Infrastructure Real-time messaging, business rules, registration and security Clearing SEPA Infrastructure Settlement Regulation and Instruments

9 A service infrastructure gives reach via central standards Service Infrastructure

10 An opportunity for banks (and other PSPs) Business opportunity Regulation Keep existing customers Keep balances on the account New products and services Requirements for Security of internet payments PSD2 XS2A ECB call for instant payments.

11 Assuming that Transactions less than 1,000 = B2C Transaction more than 1,000 = B2B Volume split is about 50/50 B2C average value = 470 B2B average value = 4,495

12 MyBank distribution of payments B2C vs B2B MyBank is being used increasingly for B2B payments Real-time experience and irrevocability No value limit 12

13 Distance : Sectors and Value and Products 50,000 40,000 30,000 20,000 10,000 B2B Payments C2G or B2G Tax E-Commerce E- commerce Average Card value 13

14 MyBank Mandates E-mandates for SEPA Direct Debit MyBank Mandate Core Completed in November 2104 MyBank Mandate B2B Completed in April 2015 Banks and service providers have completed Mandate testing. We are now waiting for the first merchants to finish integration. Paper is expensive and slow. Banks can offer better, and merchants will pay for it.

15 The Bank can be the consumer s trusted Identity Partner 80 per cent of people polled by the Economist think that internet privacy does not exist. 84 per cent worry about divulging their data to third parties. However 91 per cent of people feel that their data is secure in the hands of their financial institution. Higher than family and friends, public administrations and even doctor s offices and hospitals. Source: Economist Intelligence Unit CUG

16 Its for everybody. 16

17 Thank you For more information