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29 September 2009 Issue 619                            


                       The industry’s billion-dollar
                      sponsorship of global football
   ● Interview – HDFC’s very bullish managing director, Aditya Puri
     ● The European Commission’s latest report on banking fees
● Ping An launches China’s first online financial management service
 ● Crédit Agricole attracts 850,000 to its Double Action 2-in-1 card
Retail Banker International                                                       TEChNoloGY: oNliNE fiNANCiAl mANAGEmENT

Ping An gets eWise to OFM
Chinese	insurance	giant	Ping	An	has	rolled	out	what	it	states	is	the	country’s	first	internet-based	financial	
management	service,	Ping	An	One.	The	service	will	allow	its	customers	a	single	sign-in	to	over	50	service	
providers,	including	online	banking	sites,	third-party	payments	and	email	accounts.	hugh fasken	reports

      n what is seemingly a first in the fast-    on their financial position in real-time.”
      developing Chinese retail financial serv-     Asked whether his firm had conducted any
      ices market, insurer Ping An is offering    market research on online financial manage-
      Ping An One, an online account aggre-       ment (OFM) products in China, Tsui said
gation and financial management tool. The         that Ping An did run an “extensive” pilot
aim is to offer its customers a single sign-in    enabling the service to be tailored to the
point to up to 50 other service providers,        Chinese market – though he gave no further
from banks and insurers, to travel agents,        indication of the results.
email accounts, social media sites and other        “Ping An is committed to expanding the
third-party providers.                            service and will continue to use market
   Enoch Tsui, Ping An’s e-Business Divi-         research to incorporate additional features
sion General Manager, told RBI that with          and services that would be useful to custom-
the earnings of China’s middle-class rising,      ers,” he added.
financial institutions have a “real opportu-        He did cite statistics from China CCM’s
nity to grow share of wallet and brand loy-       2008-2009 Annual Report on China’s Online
alty” by offering sophisticated online finan-     Banking Market which said that online bank-
cial management services that cater for the       ing use has grown rapidly in recent years, up
growing consumer demand.                          54.7 percent in 2008 while trade volume
   “Ping An believes offering an account          increased by over 100 percent.
aggregation service is a real market differen-
tiator and an effective customer acquisition      47 million customers                              Enoch Tsui, Ping An
tool, enabling online account management          Ping An is the second-largest life insurer
to become a part of a consumer’s everyday         in China. Founded in 1988, the Shenzhen-             In total, he says, eWise customers report
life online. Financial institutions can lever-    headquartered group had, as of 30 June            that offering account aggregation increases
age this channel to engage with customers         2009, consolidated total assets and total         online customers by 13 percent while increas-
on a personal level as they view their finan-     equity of CNY885.4 billion ($129.6 billion)       ing revenue per customer by 35 percent.
cial affairs online and make decisions based      and CNY101.8 billion, respectively. It offers        Ping An One customers can currently
                                                  a range of financial services, including insur-   choose from over 50 accounts including
                                                  ance, investment and wealth management,           Ping An and non-Ping An products, crossing
                                                  to about 47 million customers and over two        financial and non-financial/lifestyle accounts
                                                  million corporate clients.                        including popular companies such as ICBC,
                                                     The OFM service is being run by eWise          China Construction Bank, NetEase, Bank of
                                                  Systems, a payments and banking solutions         China, China Mobile and Hotmail. eWise,
                                                  provider based in the UK, US, China and           added Matthews, currently offers access to
                                                  Australia. It has worked with a number of         over 300 online accounts so Ping An will be
                                                  banks and financial services companies,           able to expand their service to enable access
                                                  including Citibank UK (Egg Money Man-             to additional accounts based on customer
                                                  ager), First Direct (Internet Banking Plus)       feedback.
                                                  and Westpac in Australia.                            Discussing the appointment of eWise,
                                                     eWise Systems’ UK managing director,           Tsui at Ping An said: “[We] researched
                                                  Mark Matthews, told RBI that eWise cus-           online financial management implementa-
                                                  tomers report that aggregation services help      tions around the world and recognised the
                                                  consumers better understand their day-to-         importance of choosing the right technology
                                                  day financial position while the banks ben-       partner to ensure a secure and future proof
                                                  efit from increases in customer satisfaction      implementation. Ping An has a multi-year
                                                  and longevity of customer relationships. He       agreement with eWise to manage the Ping
                                                  cited Egg, the first bank in the UK to intro-     An One OFM infrastructure, in partnership
                                                  duce financial account aggregation in 2001,       with IBM Global Services China.”
                                                  and says their Money Manager service has             He added that while Ping An recognised
                                                  generated a 20 percent increase in “the over-     that financial institutions in the US, in par-
Mark Matthews, eWise                              all value of the customer”.                       ticular, have traditionally used server-side4                                                                                     29 September 2009 y 17
   TEChNoloGY: oNliNE fiNANCiAl mANAGEmENT                                                                                                      Retail Banker International

4 account aggregation, where the informa-                     that server-side aggregation becomes an                      with registration open to all online users,
   tion is collected and stored on aggregation                increasingly impractical and unscalable                      whether or not they are an existing Ping
   providers’ servers, Ping An itself favoured                solution for financial institutions such as                  An online customer, therefore meeting the
   the security and regulatory advantages of                  Ping An.”                                                    needs of all online financial services users
   client-side account aggregation because con-                                                                            in China.
   fidential data, such as account information,               Security via a digital Safe                                     After a pilot test period, Ping An launched
   resides on the user’s device and is securely               Asked about client-side security, Tsui said                  its OFM service to the Chinese public on 18
   encrypted.                                                 security is “ensured” by using eWise’s patent-               August 2009.
      In addition to the security concerns, some              ed Digital Safe, which features advanced algo-                  The Ping An One launch is being sup-
   server-side aggregation implementations                    rithms and protocols to protect customers.                   ported by a creative online and TV advertis-
   have also been criticised for limited func-                   The Digital Safe is encrypted using a 168                 ing campaign featuring Chinese celebrities
   tionality such as an inability to click through            bit, three key triple-DES algorithm, and the                 Shang Wenjie and Liu Qian, who, said Tsui,
   and transact in real time, restricting the user            transmission of the key between the eWise                    have “great appeal to a new Chinese genera-
   experience, something that is not an issue                 servers and the user’s PC is encrypted using                 tion, projecting an innovative image reflect-
   for client-side implementations.                           either the service provider’s standard proto-                ing the nature of the Ping An One service”.
      “China’s financial institutions are leading             col or 128-bit SSL protocol.                                    He concluded: “As it is the first such
   the way in incorporating additional multi-                    To use the eWise application provided                     service in China the campaign is designed
   factor authentication components, both                     by their aggregation service provider, users                 to educate online banking users about the
   online and physical devices, to ensure the                 download an application control to their                     security and benefits of online financial
   highest level of security and customer pro-                PCs during a one-off registration process.                   management while demonstrating how easy
   tection for online banking against increas-                The component has two main functions: to                     the service is to use.
   ing threats,” added Tsui.                                  maintain the Digital Safe on the user’s PC;                     “Ping An also employs a testimonial
      “The growing trend to incorporate addi-                 and to perform the aggregation process,                      approach to illustrate the convenience and
   tional token security as part of online bank-              using Active Content Agents.                                 benefits that Ping An One can bring to real
   ing authentication requirements also means                    Ping An One is currently a free service                   life.” <

    n iT CoNTRACTS
    RBI fintech dealwatch tracks recent major technology contract wins with a focus on the retail financial services industry as well as fintech mergers
    and acquisitions and innovative new product launches

    CoUNTRy           PARTICIPANTS            TyPe/VAlUe                                                                                                                  dATe
    Europe            Ingenico,	easycash      Acquisition        French	eftpos	outfit	Ingenico	has	acquired	Germany’s	easycash	from	private	equity	house	Warburg	         25	Sep
                                                                 Pincus	for	€290	million	($422	million).
    Switzerland       Zurich	Financial,	CSC   Possible	          Zurich	Financial	Services	has	entered	into	exclusive	negotiations	with	US	tech	giant	CSC	for	a	$2.4	     24	Sep
                                              outsourcing	       billion	ten-year	IT	services	deal	covering	Europe	and	North	America.	The	agreement,	which	will	
                                              agreement          incorporate	data	centre	centralisation	and	server	virtualisation	programmes,	will	provide	for	country	
                                                                 specific	agreements	to	be	entered	into	by	the	parties.
    Denmark,	Norway   PBS,	Nordito	           Merger             Danish	e-payments	outfit	PBS	and	Norwegian	counterpart	Nordito	–	owner	of	BBS	and	Teller	–	have	         24	Sep
                                                                 agreed	to	merge	their	operations.	Headquartered	in	Copenhagen,	the	new	company	aims	to	be	the	
                                                                 leading	Nordic	player	in	payments,	cards	and	information	exchange.
    Italy             Teradata,	Gruppo	       Data	              Teradata	Corporation	has	said	that	Italy’s	Gruppo	Montepaschi,	the	country’s	third-largest	financial	    24	Sep
                      Montepaschi             warehousing	       services	group,	has	consolidated	the	data	warehouses	of	its	multiple	banking	subsidiaries	onto	the	
                                              contract	win       Teradata	Active	Enterprise	Data	Warehouse	platform.
    Romania           Raiffeisen	Bank	        Security	          Raiffeisen	Bank	Romania	has	contracted	with	Swedish	security	vendor	Todos	for	the	supply	of	190,000	     23	Sep
                      Romania,	Todos          contract           portable	smart	card	readers	which	will	be	rolled	out	to	its	internet	banking	customers.
    Vietnam           Temenos,	Orient	        Core	banking	      Switzerland’s	Temenos	has	won	a	contract	from	Orient	Commercial	Bank,	a	leading	joint	stock	          23	Sep
                      Commercial	Bank         contract           commercial	bank	in	Vietnam.	The	bank	has	selected	Temenos’	T24	to	consolidate	and	support	its	entire	
                                                                 retail	and	corporate	banking	operations,	servicing	300,000	accounts	across	70	branches.
    US                HP,	EDS                 Rebrand            HP	is	rebranding	its	EDS	subsidiary	to	HP	Enterprise	Services.	The	name	change,	said	the	company,	       23	Sep
                                                                 marks	the	“next	major	step	in	a	year-long	integration	of	EDS	into	HP	and	emphasises	the	growing	
                                                                 global	role	of	enterprise	technology	services	in	HP’s	portfolio”.
    Singapore         IBM,	RedPill	           Customer	          IBM	has	acquired	the	business	of	RedPill	Solutions,	a	privately-held	company	headquartered	in	           22	Sep
                      Solutions               analytics          Singapore.	RedPill	provides	advanced	customer	analytics	services	to	businesses	in	industries	such	as	
                                                                 financial	services,	telecommunications	and	technology.	Financial	details	were	not	disclosed.
    UK                ING	Direct,	Fidelity	 Outsourcing	         Fidelity	National	Information	Services,	a	leading	provider	of	core	processing,	card	issuer	and	          16	Sep
                      National	Information	 contract	            transaction	processing	services	to	financial	institutions,	has	renewed	a	three-year	outsourcing	
                      Services              renewal              agreement	with	ING	Direct	UK.	It	has	signed	for	extended	maintenance,	support	and	application	
                                                                 development	services	via	the	FIS	Profile	core	banking	suite.
    India             State	Bank	of	India,	   ATM	contract       State	Bank	of	India	(SBI),	the	country’s	largest	lender,	has	awarded	Wincor	Nixdorf	and	its	local	       16	Sep
                      Wincor	Nixdorf                             partner	AGS	Infotech	an	order	for	1,000	ATMs.	The	bank	will	install	300	multifunctional	ProCash	
                                                                 2100xe	systems	and	700	ProCash	1500xe	cash	dispensers.	This	is	the	first	order	for	Wincor	Nixdorf	
                                                                 from	SBI.	The	bank	operates	an	ATM	network	of	approximately	15,000	ATMs	and	15,000	bank	branches	
                                                                 across	India,	including	its	six	associate	banks.

   18 y 29 September 2009                                                                                                  

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