Retail Assets Division (RAD)Cards Center Team: The Next!

© 2008 Alinma Bank

Session Outline

• Objective of session• Cards direction• Major considerations in EMV World! • Cards center setup • How we get there?• Current projects• The right now mix• Conclusions • Next steps

© 2008 Alinma Bank

Objective

Make collective

sense of the overall

activities and plan for the

future

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Major Considerations in EMV world • There is no fully Shairah compliant competent cards

sourcing/software vendor (each one needs customizations) • Accept that one sourcing model does not fit all • Instant issuance • PCI compliance • EMV is new in KSA • Business processes optimization • Marketing/ campaign management • Cards business profitability is at questionable levels when

compared to conventional banks.• Today’s needs revolve around new needs and big market

changes

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The Cards Center

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Who is cards center today?

• Sikkandar Basha• Saeed A Siddiki• Abdulmohsen Almulhem • Hassan Alsakha • Abdullah Yousef Al-

Muzaffar

• More specialists to join

Cards Product Life Cycle

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Cards Center Aim

Collect market intelligence, past market successes and failures to refine test strategies and develop new one’s

Use behavioral and demographic and profitability information to develop test strategies

Design valid champion challenger tests for various consumer product and channel segments

Asses results on a continuous basis and evaluate against expected outcomes

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Cards Center Elements

Issuing

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Cards Center Elements

Acquiring

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Cards Range

• Debit Cards/ Direct Cards• Charge Cards• Secured Cards • Prepaid Cards:

Un-personalized (Gift Card) and Personalized Reload-able Cards

• Corporate Cards• Islamic credit card

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How we get there?

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IVR

ATM

Internet

Internet

Key aspects of project consensus

Shariah Compliance

PCI / EMV /Instant Issuance

Sales

RDC (Remote Delivery

Channels)

IT

Marketing

Core Banking

Bank OperationsProducts

Development

Cards Center

Weekly meetings are being heldand all stakeholders

are involved

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Current Projects

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Current Projects underway

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Current Projects underway

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Right now Mix!

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But first a quick word on PCI

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The term is sometimes more specifically used to refer to the Payment Card Industry

Security Standards Council,

an independent council originally formed by American

Express, Discover Financial Services, JCB, MasterCard

Worldwide and Visa International on Sept. 7, 2006,

with the goal of managing the ongoing evolution of the

Payment Card Industry Data Security Standard.

20

Prominent 2007 Attack VectorsWebApplication

101010100101010111

Phishing

Spyware

1. Attacks Against Consumers2. E-Commerce Site

SQL Injections

101010100101010111

Thieves(Insiders, Outsiders)

ata

4. Fake Credentialing

Consumer Data

3. Device Vulnerability Exploits

Cash Registers

Gas Pumps ATMs

10100101010111000

4 out of 5 card data breaches happened here

21

Costs of Data Breaches vs. Data Protection

$16 per acct.1st year

Data Protection

Intrusion prevention Data encryption Security audits

Intrusion prevention Data encryption Security audits

Data Breaches

$300 per exposed acct.

Investigation fees Communications Cleanup & recovery Customer services Fines Lawsuits Increased audits

Investigation fees Communications Cleanup & recovery Customer services Fines Lawsuits Increased audits

*Unit costs are per 100,000 accounts. Costs are drastically lower when applied to millions of accounts.

© 2008 Alinma Bank

Right now Mix!

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PCIProcess

Compliance

IBM Business process

Internal cards process

ACI Solution

RDC (Remote Delivery

Channels)

Consultation process

System integrator Processes

Bank Operations

Process

Products Development

Process

Cards Center

© 2008 Alinma Bank

IBM Business process

Internal cards process ACI Solution

RDC (Remote Delivery

Channels)

Consultation process

Bank Operations

Process

Products Development

Process

Cards Center

System Integrator System Integrator

PCI Process Compliance PCI Process Compliance

© 2008 Alinma Bank

Conclusions

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Next Steps

• We all need more training on EMV in each area

• Need to agree on a cohesive business processes which works for all

• Freeze requirements to reach target

• Get Shariah approvals on all product offerings along with PSD

• We all are learning this new model

© 2008 Alinma Bank

Thank You