Your Gateway tomCommerce

Your Gateway tomCommerce

MobiFin-A Mobile Commerce Evolution

Barter

Coins

Plastic money

MobiFin

An extra ten mobile phones per 100 people in a typical developing country leads to an extra half percentage point of GDP per person growth…

…. Leonard Waverman

MobiFin Overview

MobiFin supports major industry standards such as ISO 8583, SOAP-XML, XML RPC, WSDL 1.0 and 1.1 1.2 and custom protocols.

MobiFin solution from Panamax helps service provider to integrate with various operators , banks, wholesaler/retailer and financial institutions for core services which mainly includes Mobile recharges, banking, financial services etc.. Service operator will be able to extend this service into various channels like Reseller Networks, POSA Providers or Web Portal

MobiFin solution has got the edge over existing solutions in this domain because of it’s economical and ubiquitous, Flexible & Scalable nature.

MobiFin empowers a service provider with a set of distinct features that provides an intuitive and convenient way for managing service channels with various interfaces under single roof

MobiFin is a unique Mobile based Transaction Management System that acts as a highly versatile intermediate platform. It enables service provider to diversify business by provisioning core services like Recharges, Banking services, Sales and Support to various channels.

MobiFin - Opportunities

Lottery/BettingMobile MoneyMobile Top-Up

Insurance

Int. Remittance

Loyalty

Mobile BankingUtility Payment

Single PIN Multi Top-UpMicro FinancemTicketing

Service’s at a glance

Mobile Top Up & Bill Payment Mobile Money/Wallet Mobile Ticketing Mobile Banking Micro(Agent/Branchless) Banking

Domestic Mobile Top-up (Airtime Credit)

P2P ( Person-to-Person) Air Ticketing Register Open a limited features account at local retail outlet

International Mobile Top-up (Airtime Credit)

Aggregator for existing MMSP(Super Distributor)

Bus Ticketing Check Balance Your mobile number is your account ID

Utility Payments like Electricity , Gas , Water, Digital TV , School Fees.

International Remittance Toll Tickets Get Statement (Mini Statement) Deposit & Withdraw cash at local retail outlet

PIN Base Top-up Vouchers Network of Remittance Agents use mobiles to Transfer money

Railway Tickets Transfer Funds (Bank-Wallet/Wallet –Bank)

Transfer money & make other service payments

Premium Collection ( Insurance, Loans)

Senders remit money via cash through Agents/Retailers or bank

Movie Tickets Make Payments (Same Bank Transfers)

Self Recharge Recipients collect cash at local Agent/Retailers

Ferry Tickets Stop Cheque

Retailer Recharge & Bill Payment Money Cards for Senders who might not have mobile

Entertainment Tickets (Games, Shows)

Request Cheque Book

Bulk API Change Password

Balance Transfer ( for MNOs) Top up Own Number /other Number

Why MobiFin ?

Prob

lem

Mobile Top Up Mobile Money/Wallet Mobile Banking Micro Banking

Voucher recharge is expensive, fraud prone, with logistics challenges

Son works in city; remits money to family in village via informal channels

Person is banked Person is unbanked, works & lives in urban or rural area, earns & spends cash

Voucher is unfriendly and needs every MNO’s EVD SIM Card

Traditional rémittence infrastructure not available

Banking is cumbersome due to limited branches & ATM, no computer & Internet for online banking

Cash handling is a security problem

Agents wish to deploy low working capital, more efficiently

Mobile phone is his primary device

Unable to access banking services & Has Mobile Phone

Mobile Top Up Mobile Money/Wallet Mobile Banking Micro Banking

Multi-channel PIN-less top up

Agents use mobiles to send & receive money, via prepaid accounts held with service provider

Enable full banking services on any mobile, with full security

Agent with mobile is Human ATM

Device & network independent

Provides doorstep banking with minimal infrastructure

Solution Architecture

MobiFin – System Interfaces

   

Short Messenging Service (SMS) SMS Based Mobile Application

  POS Handheld terminals

GPRS POS Access

  GPRS Mobile Application

WAPDistributor Mobile App - Android, J2ME, BlackBerry, iPhone

 Reseller Mobile App - Android, J2ME, BlackBerry, iPhone

 CSR Mobile App - Android, J2ME, BlackBerry, iPhone

Web Admin Web Portal

Foreign Language Support

  CSR Web Portal

  Reseller Web Portal

  Corporate Web Portal

  Distributor Web Portal

  Bulk Distributor Log IN

  Merchant Log INUnstructured Supplementary Service Data (USSD)  USSD Menu

Interactive Voice Response (IVR) Dynamic IVR Management

POS Device ApplicationSpectra, Visiontek, Ingenico and Verifone

Kiosk Device Application Standalone/Wall Mounted Kiosk

Service Flow

Mobile Account

Wallet Transfer

Bank Transfer

Load Money from bank Account

Load Money from bank Account

Check Balance

/Statement

Wallet (Bank) Services

Merchant Payment

Merchant Payment

Mobile Top UpMobile Top Up

Internet Top Up

DTH Top UP

Domestic Remittances

Domestic Remittances

Top Up ServicesTop Up Services

International Remittances

Electiricity

Tax Collection

Remittances Serices

Remittances Serices

Loan Payments

School Fee Payment

Bill Pay

Change PasswordChange

Password

Change Transcation Password

Change Transcation Password

Settings

Mobile Top-Up Utility Payment

Recharge Card Challenges

• Time to market

• Cost of printing

• Transportation and storage

• Damage in transit, theft, and fraud

• Limited visibility on distribution channel

• Revenue realization

• Geographic coverage

• Stock availability

• Higher investment in stocks

• Time lag in stock arrival

• Storage

• Dependence on the channel members

• Availability of the preferred denomination

Operator ChallengesOperator Challenges Channel Member Challenges

Channel Member Challenges Customer ChallengesCustomer Challenges

mTopUp Advantages

• mTopUp Advantages

• Multi-channel PIN & PIN-less Top up• Multi Operator Single PIN & PIN-less Top

up• Device & network independent• Self Recharge• Retailer Recharge• Bulk Recharge (API)• Balance Transfer (MNO)• Bill Payments (Utility)• Top up Via Banking Transaction

Issues with traditional mobile recharge system

* Voucher recharge is expensive, fraud prone, with logistics challenges

* Recharge cards are unfriendly

* Additional expense on paper, printing, distribution and customer care on these cards

* Agents wish to deploy low working capital, more efficiently

Services

Service Offered Brief

Electronic Voucher Distribution e-PIN being electronically delivered to subscriber’s phone at the point of sale

Physical Voucher Recharge Scratch Cards sold with predefined pins with Fix denominations

Bill payments Bill Payment for various utilities

API based Bulk Recharge (3rd Party Recharge) Provides e-enabled distributors to connect their IT systems to Button Pay e-Recharge system over our open API, to enable them to sell any value top up via their retail points, by opening one bulk account

Direct self recharge by subscriber

Enables subscribers to recharge their own or another account using their own handset or a web portal, and making payment via credit / debit card, or, direct bank debit

Transaction Type

Mobile Handsets

Web Portal

SMS

IVR

Open API: XML, HTTPS

ATM, Direct Bank Debit, Credit & Debit cards

(requires integration)

Feature RequiresBanking IntegrationFeature Requires

Banking Integration

MobiFin Apps

• MobiFin provides Application for • Java • Symbian• Smart Phone (Android & IOS)• Blackberry

MobiFin – Distribution Management

MobiFin provides a Flexible and easy way to make and manage distribution channels. MobiFin platform offers CSR(Customer Service Representative) and Distributor Mobile Apps which allows to create and manage Agents/Retailers in real-time. Upon successful creation of Agent , Agent will receive E-mail and SMS with the Credentials. CSR/Distributor can transfer E-Value to agents account and Agent can perform Transactions.

MobiFin platform support a Distribution channel up to 16 Levels. Also , allows to Create a Distributor. Distributors can have their own Mobile Applications and Web portals through which they can Create and manage agent/Retailers under them. They can set the desired Products and commissions to the agents and control their business. MobiFin also allows real-Time reports which shows on going transactions and Commissions.

Channel Management Feature

• Multiple domains

• Multiple level channel hierarchy under a domain

• Channel entity in a domain (configurable)

•Distributor

•Sub-Distributor

•Sales Agent

•Retailer

• Channel Category grades for different commission and control profiles

• Channel user association with Area/Sub-Area for reporting

• Create/Delete channel members in bulk

• Transfer Channel member with down-liners in the same domain

Allows an Operator /Service Provider to Define N-level Distribution HierarchiesAllows an Operator /Service Provider to Define N-level Distribution Hierarchies

Add/Modify/Delete Channel UsersAdd/Modify/Delete Channel Users

Channel Management Feature

• Parent association of a channel entity

• Direct transfer from one channel

entity to another

• Allow/Deny channel bypass for

transfer

• Allow/Deny withdrawal of credit from

channel entities

• Allow/Deny return to channel entities

• Activate/Deactivate services (e.g.

Recharge, Bill Payment)

• Commission profile for:

• Operator /Service providers to

Channel transfer

• Channel to Channel transfer

• Channel to subscriber transfer

• Additional commission based on

the consumption of service

• Value of transfer

Association Rules forChannel Domain

Association Rules forChannel Domain Commissions ManagementCommissions Management

Retail chain tree policy management

Business Rule Manager

Transaction Rules

Daily/Weekly/Monthly

Transaction Control

Daily/Weekly/Monthly

Transaction Control

Daily /Weekly/Monthly

Amount Control

Daily /Weekly/Monthly

Amount Control

Daily /Weekly/Monthly

Service Rules

Daily /Weekly/Monthly

Service Rules

Retail Rules

Retailer Service RulesRetailer Service Rules

Retailer Amount RulesRetailer Amount Rules

Retailer Transaction

Rules

Retailer Transaction

Rules

Sales Rules

Sales Service RulesSales Service Rules

Sales Amount RulesSales Amount Rules

Sales Transaction RulesSales Transaction Rules

Mobile Money Int. Remittance

mTransfer

The Mobile Money

ecosystem consist of Bank ,

Agent and End Users. Banks

being the Financial institutes

provides all the Financial

features. Agents and End

Users can access the Services

which Banks provides after

the Integration with MobiFin

system

MobiFin system ensures

smooth Agent and User

registration process with KYC

status at mobile application

and web portal levels, If the

KYC is in-complete , the

Agent or User will receive

alerts for defined time and

then the MobiFin system will

automatically Block them

ensuring that no any

Transactions are done

without complete KYC.

The Consumer and Agents

needs to be registered on the

Platform and complete the

KYC process to start using the

Mobile Money Services.

Mobile Money allows banked

as well as unbanked people

the ease to Send and Receive

money without any hassle.

The Mobile Money concept has transformed many countries from Cash based market to Cash Less market.

Mobile Money for Agents (P2P)

• The agents/retailers have mainly have two services for Mobile Money users. Send Money Receive Money

• Using Send Money , the Agent can load money into the End User’s Wallet. Basically , the End User providers physical cash to Agent and ask agent to transfer eValue into his/her wallet. Below snapshots providers graphical view for the same

Receive Money allows the End User to convert their eValue in to physical cash. In this case , The End User has to transfer the evalue in to Agent’s wallet and get the physical cash on confirmation of the same. Receive money request are generally initiated by the End Users from their mobile Devices. They can initiate the Receive Money request either from USSD or SMS. Upon successful Transaction , The user and the Agent gets notifications from provider and user gets the physical cash from Agent.

Mobile Money for End User

The End Users can avail lot of benefits from the Mobile Money services. It allows them to Send and Receive money easily without using any banks services. The user needs to register and perform KYC process to active Wallet on MobiFin system. Once the Wallet is Active , User can start leveraging the various services provided by MobiFin system.

The End Users can access various services like Wallet to Wallet transfer , Bank to Wallet and Wallet to Bank transfer , Merchant Payment , Top-up , Utility Payment and Ticketing from single Wallet account. The Wallet consists of three main Money Services :

• Bank to Wallet Transfer

• Wallet to Bank Transfer

• Wallet to Wallet Transfer

The below snapshots describersthe steps involved in UserApplication to perform Transfer

Mobile Money for Merchants (M2M)

• Mobile Money can play vital role for the Merchant when it comes for collecting cash from consumers.

• In many cases , Merchants have distribution channels under them and collecting cash for the supplied Goods becomes tedious job. The MobiFin platform allows Merchants an easy way to achieve the same. Merchant can register their own distribution channel on MobiFin system and enable Cash less transactions through Wallet transfers.

• FMCG Distribution, Bars, Restraunt’s, Shopkeepers , Malls , Super Markets Etc. can also facilitate their consumers to make payment towards their purchase through Wallet.

• Upon successful payment , Consumer and Merchant can get E-mail or SMS notifications.

mTransfer Advantages

• mTranfer Advantages

• Agents use mobiles to send & receive money, via prepaid accounts held with service provider

• Network of Remittance Agents use mobiles to Transfer money

• Senders remit money via cash through Agents/Retailers or bank

• Recipients collect cash at local Agent/Retailers

• Money Cards for Senders who might not have mobile

Issues with traditional Remittance process

* Son works in city; remits money to family in village via informal channels

* Traditional rémittence infrastructure not available

Dynamic Charging Management

Sr. No Services Supported Charges1 Wallet Transfer Fix Amount Based Charges Wallet Transfer Flexi Amount Based Charges2 Withdrawal Fix Amount Based Charges Wallet Transfer Flexi Amount Based Charges3 Load Cash Fix Amount Based Charges Load Cash Flexi Amount Based Charges4 Check Balance Transaction Based Charges5 Top Up Services Fix Amount Based Charges Top Up Services Flexi Amount Based Charges6 Remittances Services Fix Amount Based Charges Remittances Services Flexi Amount Based Charges7 Bill Pay Services Fix Amount Based Charges Bill Pay Services Flexi Amount Based Charges8 Tax Collection Services Flexi Amount Based Charges9 Merchant payment Services Flexi Amount Based Charges10 Ticketing Services Fix Amount Based Charges Ticketing Services Flexi Amount Based Charges11 Change Password Transaction Based Charges

Participants in Ecosystem

Participants Brief

Mobile Money Service Provider (MMSP)- Operates service, branding, marketing, system, cash handling

License & regulatory compliance for service Banks / Financial Institutions Hosts ‘Custodian Account’ holding real cash flowing thru the service

Subscriber Usually un-banked; owns or has access to a mobile SIM Gets m-wallet & limited set of Services based on product choice

Authorized Retailer: Agent Branded outlet for MMSP, where new subscribers open m-wallets

Performs cash-in (deposit) and cash-out (withdrawals) for users

Super Agents Agents Used by MMSP to create network of Agents

Mobile operator Carries mobile transactions on their network through 3G,Edge,GPRS,USSD ,SMS

Provides SMS connectivity for their subscribers (short code)

Operational Flow

Operational Overview

Agents Subscriber

Service Provider enrolls authorized retailers as Agent Subscriber visits Agents to make transfers; gives – name of the recipient ,phone number and valid ID is required

Agent carries prominent Service Providers signage on outlet Sender pays cash to Agents : Agents uses Handset Menu to transfer corresponding amount from his M-Wallet into a Holding Account

Service Provider creates m-wallet for each Agent, into which the Agent deposits a prepaid balance (Working Capital)

Platform generates token code for each remittance received into holding account and notifies agents, sender and recipient

Agent deposits & transacts either directly with Service Provider or via Super Agent

Recipient visits local Agents, provides Token Code, Name, Valid ID : Request Collection

Agents accesses service from user friendly menus on their mobile handset through Mobile OS

Local Agent pulls inward remittance from Holding account into his M Wallet via his handset and pays cash out to the recipient

Recipients can also choose to pull their inward remittance into their bank accounts ( Banking Integration Recquiered)

Subscriber to Subscriber Transfer (P2P)

Register for the P2P service to transfer virtual amount.

The sender initiates the transfer through SMS/USSD/WAP applicationThe SMS/USSD/WAP application that contains the keyword, receiver’s mobile number and amount of transfer .The sender confirms transaction with Mpin secured transaction pin for secured transactionThe sender shall also receive the transaction ID , amount and the mobile number of the person for the transaction done

Transfer Processing & ControlsDetermination of service profile and checks for ‘no bar’ status of both entitiesOn successful transfer, the sender and receiver would receive a confirmation messageThe receiver would receive the sender’s Mobile number, amount transferred and the transaction idThe sender would receive the transaction confirmation with the receiver's name/ Mobile number , transfer amount

and transaction id on successDebit sender's talk time account from the IN and Credit receiver’s account using charging system interface in case of

MNO lead model or shall be in the form of virtual wallet credit.

Initiation of Transfer

Mobile Banking

Changing Scenario of Banking

Changing customer needs together with major advancements in technology are transforming the banking landscape.

Customers now expect a broad portfolio of personalized offerings and convenient, multi-channel access to banking services

At the same time banks’ traditional dominance of the banking market is being challenged by new players, such as mobile operators, mobile device manufacturers, online payment processors, and location based service providers - many of which are launching innovative financial products riding on digital technology

Banks must keep pace with changing consumer needs and increasing competition to remain relevant to their customer base and retain their leadership in the market for Banking services

At the same time, banks must cultivate their top line and improve overall performance. To fast-track revenue growth banks need to increase product uptake amongst their existing customers and extend service reach to unbanked segments

Many banks are looking to meet these challenges by adopting mobile banking as a means of delivering cost-effective, omnipresent banking services to a wider audience - and as a route to providing convenient, secure, personalized mobile banking services.

Upholding profit margins necessitates an increased focus on driving productivity - reducing the overall cost to reach out the customers

mBanking for Banked Customers

• MobiFin -mBanking solution enables banked customers to access banking services securely from their mobile handset, both to seek account information & to perform financial transactions. The solution integrates seamlessly with existing banking & telecommunication infrastructure

• Bank customers are provisioned on the system to access their account and carry out transactions like  Notifications and alerts , Bill payment, transfers and transactions, Account and wealth management & Financing: credit, loan, insurance

• Mobile phone used as banking terminal

• Menu driven application• Bank-grade security

• Mobile phone used as banking terminal

• Menu driven application• Bank-grade security

Service provider lead Business model

Bank offers Mobile Banking to their customers Bank holds all Bank Accounts in their systems

Serves multiple banks & enrolls merchants Provides back end technology, handset application & connectivity with all mobile operators

Bank earns Transaction Fees, Commissions or subscription on service packages

Service Provider processes mBanking transactions on behalf of banks (integrate their system with bank)

Service Provider manages e-Top Up for all Mobile Operators as their distributor & utilize existing relationships

with utilities for Bill Payments via mobile

Participating Bank/Financial Institute

All transactions are

then performed at the

bank host, and the

micro banking system

serves as a proxy,

providing secure

access via user’s

mobile phone.

If the bank, MBSP or

the licensor so

requires, then the

micro banking system

can be integrated with

the bank’s IT systems

to create ‘real’ bank

accounts behind each

subscriber m-Wallet.

The bank is

responsible for

obtaining license for

the service, regulatory

compliance, facilitating

inter bank transfers &

settlements, forex

trading license (if cross

border remittances are

offered).

A Bank would either

directly be the MBSP,

or would have equity /

contractual

relationship with

MBSP

Mobile Banking Services

mWallet Services•Cash IN from Bank Account •Cash Out to Bank Account •mWallet Statement •Wallet Money Transfer

Banking Services•Mini Statement and checking of account history •Alerts on Account Activity or passing of set thresholds•Access to card statement•Cheque Book Request •Recent Transaction •Add / Remove Bank Account •Bank Fund Transfer •Locating nearest bank branch, ATMS•PIN Provisioning or Change of PIN

Payment •Mobile TopUp •Utility Payment •Mobile Ticketing

Deposit / Withdrawals • Deposit at Banking Agent • Withdrawals at Banking

Agent

AccountInformation

AccountInformation

Payments, deposit,withdrawals,and transfer

Payments, deposit,withdrawals,and transfer

Operational Overview

• Create vendor (bank / mobile operator)

• Create prefix per vendor

• Create different service packs with different product mix per pack

• Create fees per pack or per product

• Begin selling to subscribers

• Allocate service pack to subscribers

• Subscriber registration Links mobile number to account number(s)

Create inactive account Sends application to subscriber, with confirmation Send MPIN Customer changes MPIN, account becomes active

Customer profile stored againstunique Account ID

(internal parameter)

Account ID mapped toMSISDN & bank account

No loss of profile if MSISDN changed

Customer authentication requiredbefore MSISDN change in profile

Customer profile stored againstunique Account ID

(internal parameter)

Account ID mapped toMSISDN & bank account

No loss of profile if MSISDN changed

Customer authentication requiredbefore MSISDN change in profile

mBanking -Features

System is accessed from user-friendly menus on the mobile handset

Subscriber password (MPIN) management via handset & web based self care

Choose basic or smart handset application

Handset menus can be in local language

Capability to integrate multiple banks & mobile operators reliably and efficiently

Configurable Business Rules; earn revenue via subscription or transaction fees

Commissions & fees vary per entity & by transaction type

Configurable transaction limits: per transaction, transaction type of periodic

Trigger based reports

Range of standard & customized reports

Full enrolment & provisioning module

Configurable notification, alerts templates

Secure self care portal

2-stage approval for configuration changes

Built-in Reconciliation module

Account Balance Check / Query

Cheque Book Requests

Stop Cheque & Card Payments

Funds Transfer between own / other accounts

Payments to Merchant Accounts Pre-paid top-up of own & other phones

Bill Payments & Utility Services Payments

Salary Disbursements

Stock Quotes

Last 5 transactions

Payment for these transactions via direct debit of bank account or credit card

Alerts & SMS push/pull messages

Mobile Banking Ecosystem

mBanking Advantages

• mBanking Advantages

Enable full banking services on any mobile, with full security with all following features on a single click of a mobile

Register Check Balance Get Statement (Mini Statement) Transfer Funds Make Payments Stop Cheque Request Cheque Book Change Password

IIssues with traditional banking process

* Time and space specific access to the banking service

* Banking is cumbersome due to limited branches & ATM, no computer & Internet for online banking

* Mobile phone is his primary device

Micro (Agent/Branchless) Banking

Micro Banking Advantages

Agent with mobile is Human ATM

Provides doorstep banking with minimal infrastructure

Open a limited features account at local retail outlet

Your mobile number is your account ID

Deposit & Withdraw cash at local retail outlet

Transfer money & make payments

This system allows people to open virtual bank accounts (mwallets) at authorized retail outlets (Banking Agents), move real money (not airtime as a pseudo currency) between these accounts, and make payments for goods & services to merchants, using their monies in this account.

A neat feature allows salaries to be credited directly into these accounts by employers.

This offers enormous potential to open new markets and business opportunities for service providers, banks, mobile operators & merchants!

Micro Banking Features

Makes banking available at retail outlets Secure way for un-banked to save their money Cash in & cash out (at ATM or retail outlet) Person to Person money transfers o Registered / unregistered to registered / unregistered Long Distance Remittances: domestic or foreign Pre-paid mobile Top-Up: own or other’s phone Person to Merchants payments for purchase of goods / services Disbursement of salary by employer into micro banking account Loan installment repayments using funds in micro banking account Bill payments Balance check Check Last 5 Transactions (mini statement) Change M-PIN Salary credit into m-Wallet by employer Additional functionalities can be added as per requirement of the Service Provider, regulatory requirements and availability of appropriate

API at the Bank host system.

How does it work - Security Standard

Internet

CryptographyAlgorithm

HTTPS SSL 3.0

Firewall Firewall

HTTPS SSL 3.0

CryptographyAlgorithm

CryptographyAES

Security application components

Database Cryptography Digital Certificates - SSL End to end transmission Cryptography Two different authentication processes Ethical Hacking Test (Vulnerability Assessment) Self destruction in case of loss, theft or a password mistake. User vs personal device (only a specific user ID can use a specific device)

Bank

MD5 and SHA1 check sum generation algoritham

IP Sec VPN

ISO 8583

HTTPS SSL 3.0

SMSC

Mobile Banking SMS Alert Notification

Opt in Customer Subscribers

Invitation Bank Solicit Subscription

Queries Customer Request

Information

Customer Relationship Management

Present Offer

AlertsTransaction Alerts Cheque Bounce Alerts Cheque Paid Alert Clearing Cheque Alert Standing Instruction Bank Dispatch

Customer Notices

RewardsUtility

Information

SMS Contact Entry Points SMS Modules Delivery

Path

SMSC Gateway

Carrier Transmission

MobiFin

Customer Handset

Mobile Banking Consumer Registration

Un bankConsumer

Approaching Authorized

Banking Agent in their

area

Banking Agent Enrolled the consumer – Pre data validation – KYC FORM – Opening Bank A/C Fees and will provide receipt.

MobiFin System receive data – dedupe check and send

information to Bank.

BANK

Processed Enrolled Data –

Personalized baking details -

Verification

DispatchConsumer

Consumer

Salary Disbursement to m-wallet

Subscriber Benefits Bank Benefits

Target subscribers are daily / weekly wage earners :Low wage, bottom of the pyramid

Attract unbanked customers –new market segment

Convenient, easy & quick way to save & transfer moneyExtend bank reach via branded “Banking Agents”

Gives banks large ‘retail presence’ without opening expensive branches or ATM’s Visibility via signage at retail outlets

Can get salary credited into m-Wallet account Subscriber handset becomes a virtual debit card

Requires minimal infrastructure: mobile phone & BA; no bank accounts & branches / ATM

Subscribers of all mobile operators can use service, giving banks access to huge prospective customer base

Sufficiently secure & cheap Cost effective way to significantly extend reach of remittance services

Subscribers of all mobile operators can use service Subscribers of all mobile operators can use service

More secure vs. receiving cash salary Enforce timely payment of salary Reduces corruption in cash disbursements Employee gets full amount automatically from central disbursement authority Ideal disbursement mechanism for employees in remote areas

Architecture

Provider

Bank

WEB

IVR

SMS / USSD

Mobile App

Fir

ewal

l

Fir

ewal

l

Secure ANI

https

3DES / AES

https

ISO 8583

ISO 8583

Consumer

Consumer

Security

Scalability, Redundancy & Hardware Architecture

Scalability Redundancy Hardware and Software

The solution is an distributed

architecture that makes it highly

scalable. Technically, there is no

limit to the number of users the

solution can support.

Handle peak traffic reliably and

efficiently.

Deliver high availability, and

therefore, better customer service

and reduce lost revenue

Deploy as you grow

Redundancy can be provided at

each tier, in an active-active model,

and as an active-passive model, with

one node serving as a standby or

backup.

At the DB tier, SQL proxies

(MySQL™) – live replication of

MySQL DB supported.

Geographically DR site – in order to

avoid DR event with no affect to the

total operation.

Specific preferences follow:

Hardware

Application Server: Dual Quad Core

Intel Xeon Processor 55XX

Database Server: Dual Quad Core

Intel Xeon Processor 55XX

Operating System – RHEL 5.5 – 64 bit

or Centos 5.5 – 64 bit

AML

• MobiFin has In built Business Rule Manager.

• It can support various rules according to business policy or regulatory requirements.

• It can also be used to block fraud rant transactions.

Float Rule ManagerIt Controls float transfer in-

out of MobiFIN platform

Transaction Rule ManagerIt Controls transaction

control in-out of MobiFIN Platform

Reconciliation

Difference File Generation in case of mismatch of transactions.

Provider/Operator Transaction Data files

MobiFIN Platform Transaction Data Files

Trace Files

User Access Logs :

Platform always logs

user access logs in

the DB .It contains

details like User

Access ,Configuration

Changes. It provides

auditing facility to

admin users.

Transaction Logs : These logs are maintained in the reliable DB thus it is available as Report Formats. It also contains vital information such as Request/Responses in it. It helps to troubleshoot transaction related queries.

Access Logs : Access

Logs providing detail

logs of access made

to App Servers. Helps

troubleshooting

access to platform

from third party

applications.

Application Logs :

Under lying System

Traces which are

useful for application

debugging and

troubleshooting at

highest level.

MobiFin Platform

writes various type of

logs based on access.

Float Rule Manager

Transaction Rule Manager

Actual Site Deployment and Hardware Specs

• Database Servers

• Application Servers

• Redundant servers

• Storage

• KVM

• Routers

• Switches

• Power recq

• Rack Space

Backup & Restore Policy

• Scripts are configured for periodic hot backup (data files) and archive log backups

• Able to perform period cold back-ups

• Scheduled scripts copy the backup files to shared storage

• Backup files are later moved into tapes

• Two copies of archives logs are created

• Archive log files of last two days are available on hard disk for recovery

• Database recovery is done by commands using files from shared storage and tapes

Database Maintenance

• Database space and cluster monitor

• Database tuning

• Database tuning (e.g. Identify database buffer and library caches hit ratios, sort in memory – adjust as required)

• Rebuild indexes with high number of deleted leaves.

• Analyze objects

• Purge Database Server Log Files

• Data Purging - Monthly

• Purging of data

• Adding/Dropping of the partition

Application Maintenance

Server load checking

CPU utilization

Memory utilization

Disk space checking

Monitoring partitions with usage more than threshold set

Purging of old logs

Application server logs

Database server logs

Gateway server logs

Web server logs

Monitoring application cluster

OAM: Alarm Management

• Application subsystem failure: A process level alarm when any of the module can be brought up

• Congestion: A system or network component has reached its capacity or is approaching it.

• Corrupt data: An error has caused data to be incorrect and data is therefore unreliable data passed by the application is incorrect

• File error: The format of a file (or set of files) is incorrect and cannot be used reliably in processing

• I/O device error: An error has occurred on the I/O device cases in which the application is unable to read configuration files

• Resource at or nearing capacity: There is a congestion control mechanism to provide high availability of service

• Response time excessive: The elapsed time between the end of an inquiry and beginning the answer to that inquiry is outside acceptable limits

• VPN Connections, HTTP Links• Links with any other external system e.g. USSD Gateway, SMS Gateway• In the event of any link failure, an SMS/Email is sent to pre-defined numbers

Constantly monitors the followingConstantly monitors the following

Alarm ScenariosAlarm Scenarios

Security level’s

Mobile App. SecurityMobile App. Security

SMS encryption (3DES2)Symmetric Encryption and DecryptionEach SIM is assigned a unique keyTransaction ID Generated at SIM levelMobile App. messages are protected by encryptionMobile App. transaction does not work unless MSISDN is registered

Web Application SecurityWeb Application Security

Login ID and password authenticationIP address authenticationTime of day and days of week based login controlRole based authenticationHTTPS for secure transmissionForced password change every ‘n’ daysForced session idle timeout

Fraud Checking Fraud Checking

Automated barring on failed attempts exceeding thresholdSystem bars customers after a defined number of repeated unsuccessful top-up attempts Configurable block period in between two successful transactions.The objective of setting a time gap is to track and identify abnormal transaction requests Upper limit on the transaction amount permissible in a day

Mobile Access SecurityMobile Access Security

Barring UsersChannel usersSubscribers for P2P transactionsPIN based accessForced changed of PIN on 1st requestForced changed of PIN on a periodic basis

Security Parameters

Security Features Brief

3DES Security Triple DES (3DES) is a block cipher formed from the Data Encryption Standard (DES) cipher by using it three times. When it was found that a 56-bit key of DES is not enough to guard against brute force attacks, 3DES was chosen as a simple way to enlarge the key space without a need to switch to a new algorithm. The use of three steps is essential to prevent meet-in-the-middle attacks that are effective against double DES encryption. Requests coming into the e-Top Up platform via SMS are encrypted using 3DES, to ensure security during transmission from handset to e-Top Up system

MD5 HashingMD5 (Message-Digest algorithm 5) is a widely used cryptographic hash function with a 128-bit hash value, as an Internet standard (RFC 1321). An MD5 hash is typically expressed as a 32 digit hexadecimal number. This is a one-way algorithm and is irreversible i.e., cannot be decrypted.

AESAES has been adopted by the U.S. government and is now used worldwide. It supersedes the Data Encryption Standard (DES),[5] which was published in 1977. The algorithm described by AES is a symmetric-key algorithm, meaning the same key is used for both encrypting and decrypting the data.

SHA1 Secured Hash Algorithm 1 -A 160-bit hash function which resembles the earlier MD5

Application Access Security

Given the functionality & nature of transactions supported on the Mobile Banking/Wallet platform, it is mandatory that the platform abides by strict security guidelines as per industry standards for software platforms, Financial standards, Cyber / Information Security Standards etc.

SMS Security: To make an transaction exchange using SMS, the bank or mobile operators connect to our central server over a secure channel using Industry standard Hypertext transfer protocol Secure (HTTPS), the same protocol is used for online banking.For additional Security we do deploy VPN (Virtual Private Network) Mobile Transactions made through SMS can also apply Second Factor Authentication (2FA) using IVR (Interactive Voice Response) or WAP (Wireless Access protocol)To further safeguard the SMS we store records of each Message. Storing a record of the message is regulatory requirements and we take one more security step by encrypting each message, we use cryptography algorithm from security leader RSA. This encryption technology is based on Asymmetric Public Key Cryptography and has strength of 2048 bits.

Security for USSD: To Make an transaction exchange using USSD , the banks or mobile operators Connect to our network of server system over a session based ( not store –and – forward)Connection. USSD reduces risk and leaves no trace of transaction on handset.

Security over transaction through WEB

Customers who want to transact over web are protected by Inactivity lockout.When an account has no activity for a set time after customer logs in , the connection is dropped, locking the user out.Currently all transactions over web are on secure channel using Industry standard Hypertext transfer protocol Secure (HTTPS)

Mobile Client Applications: Mobile transactions can also be made using a downloadable client (Mobile App).During these exchanges data send from the mobile devise is secured using HTTPS , as well as other security algorithms such as RSA(An American computer and network security company. RSA was named after the initials of its co-founders Ron Rivest, Adi Shamir, and Len ), SHA 1 (Secured Hash Algorithm 1). Mobile devise they do not support SSL (Secure Socket Layer) protocol are secured by protocols with similar strength.The Mobile application also supports MPIN ( Mobile Personal Identification number ) /Transaction Pin using RSA and AES (Advance Encryption standards) .Another layer of security can be applied with application Pin(A PIN), this pins is validated locally at the middleware or the application.The APIN is used to unlock the application on the mobile phone before connecting to the server system.The additional layer of security keeps Validation information from being stored on the mobile phone or the middleware.

Audit Trail: Every transaction (whether successful, failed or error) passing through our System is logged. The Admin Interface offers a full audit trail for every activity on the system; it tracks & logs all the activities being performed by each admin user on the Admin Interface.

Hardware Interfaces

MobiFin Architecture in HA Mode

MobiFin Architecture in Normal Mode