2. PAYMENT SYSTEMS – 3 rd Annual Summit Innovative, Inclusive and Integrated Approach for Payment Systems Biju J. John HEAD, BANKING AND FINANCIAL SERVICES HCL INFOSYSTEMS LTD

3. Payments system impacts Payments System PCI DSS PA-DSS EMV Internet Contactless Scheme Mandates Gift Cards Technology platforms Pre-Paid Mobile Banking Mobile Payments ATM Kiosks Instant Issuing 1:1 Marketing Loyalty Cross border Profitability improvement and Cost Reduction

4. Payment Systems and IT  Payment systems to be supportive of strong inclusive, functionally diverse, efficient and flexible, financial system. Global standards required.  All are expected to DO MORE WITH LESS. With the insight of how cost, profit and value are created, organizations can allocate resources more efficiently, earn profit and maximize value.  Innovation and Integration is the major focus of E-Payments.  Information has long been a leader's most valued tool.  Analysed information helps avoid squandering valuable resources and using it with a decision making framework requires great skill and investment; but it can deliver vast rewards and reach you to your goal.  IT has brought seamless access to global resources and thinning of the branch and connecting globally distributed back offices seamlessly  Efficiency and cost-effectiveness, making a 24/7 Customer experience possible  E-Banking reduces paper usage and storage costs  Green Banking – Energy reduction and usage of Energy Management

5. India - Facts  Second fastest growing economy, hotbed of technological advances  Worlds Largest Democracy; a sound legal and judicial system  20 million potential employees available to the IT industry alone  India has the 2nd largest pool of scientists and engineers  54% of Indians less than 25 years old – Youngest country  3 rd Largest English speaking country in the world  Mobile phone subscriber base nearing 5 million, talking nation  $ 1031 annual per capita nominal GDP Ranked 139/180; among poorest  Among top 5 countries when it comes to number of billionaires We owe a lot to the Indians who taught us to count without which no worthwhile scientific discovery could have been made. - Albert Einstein

6. The Future

7. No Innovation, No Integration = No Efficiency

8. Evolution of Payments Core Payment Products Bank Transfers Credit Cards Debit (international and domestic) cards Stored value accounts (SVA) Physical channel: contactless proximity technologies Online channel – bank transfers, cards or SVA accounts Mobile channel – proximity or remote payments; all payment products Critical mass for: Online payments Contactless payments Mobile payments (open and interoperable) Mobile / online convergence Channel / Technology Innovations Point of Arrival – Advanced Payments

9. Payments relating to Online Commerce (B2C) and Online Personal (P2P) payments. These are made with payment cards, bank transfers, or stored value accounts Payments made at points of sale (POS) – card equipped with RFID functionality. Expected to be used for low value transactions at locations where speed of payment is important Mobile payments and other financial services transactions that are initiated using a handheld mobile communications device. This covers both remote or NFC based proximity payments ONLINE COMMERCE MOBILE PAYMENTS (REMOTE, NFC) MOBILE PAYMENTS (REMOTE, NFC) CONTACTLESS Key trends in three core areas of payments A D V A N C E D P A Y M E N T S

10. Mobile phone : most successful communication device Over a million new subscribers a day 1 billion+ subscribers 2 billion subscribers 3.5 billion subscribers 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 200320042005200620072008200920102011 Global mobile subscribers (millions) Actual Projected Estimated 5 billion subscribers Many developed countries over 100% penetration Rising fast in developing countries 615 million mobile wallets in 2011, growing to 1.4 B by 2015

11. $ Domestic Cross-Border Remittances Informational Transactional Proximity (Contactless) Remote (Digital or Physical Delivery) Mobile Money Transfers (P2P) Mobile Banking Mobile Payments / M Commerce (P2B) Mobile based Financial Services - opportunities. Each area offers opportunities to generate direct / indirect revenues Mobile Financial Services

12. Domination of Online payments will continue Global Advanced Payment Forecasts – Relative Payment Volumes in $ Mobile $510 B Contactless Cards $395 B Online $1,842 B Source: Edgar, Dunn & Company Forecasts 2009 – Advanced Payments Report 2009

13. ATM - Trends and current scenario

14. HCL Infosystems In Payments  HCL Infosystems works with leading providers of integrated solutions for self-service banking and payment processing. The same solution serves over 1,500 customers in more than 50 countries.  Drives self-service financial transactions and payments, including advanced transactions such as prepay, through Internet access points, ATMs, POS terminals, and phones. More than 100,000 ATMs and 380,000 POS terminals worldwide run on this solution.  Built on open systems, the solutions provide consolidated management information, card management, 3DES and EMV enablement, and loyalty management.  Complies with new regulations and security enhancements, such as the Payment Card Industry Data Security Standard (PCI DSS). Complies to Visa’s Payment Application Best Practices (PABP)  We can help customers achieve compliance with the latest data security standards developed by the payment card industry.

15. Current scenario in Inclusive Banking  What India is trying to do in FINANCIAL INCLUSION has great lessons for the entire world  Innovative technology applications to bring down the cost of transaction as well as making it easy to use.  The next billion dollar banking technology opportunity through cost- effective and convenient means for people whose transaction sizes would be low.  Involves access side technologies smart card-based, mobile-based and biometrics-based solutions for non-cash transactions and micro ATMs or similar devices for cash-based transactions.  Why no progress in FI : Few System Integrators, Absence of Reach, Coverage; No proper delivery mechanism; Transactions low

16. HCL Infosystems in Financial Inclusion

17. HCL’s Offerings for Financial Inclusion

18. Innovations in Hardware VOICE ENABLED TOUCH SCREEN KIOSKS FOR NREGA PROJECTS KIOSKS FOR CHEQUE DEPOSIT, PASSBOOK PRINTING, INFO & NON CASH TRANSACTIONS FI ENROLLMENT KITHCLS HHT HCLs BANK DATA CENTRE IN A BOX

19. Display Color TFT LCD with Function Key Topper(Optional) Power 110~240Vac, 50/60Hz Receipt Printer Graphical thermal Cash Dispenser Security Camera For Portrait Safe & Lock UL 291 Level 1 Dual Combination electronic Lock Door open sensor Temperature/Vibration sensor Earphone jack EPP (Encrypting PIN Pad) PCI Compliance Encrypting PIN Pad : T-DES ADA support Optional RKT support (RSA) Internal Speaker Card handling Dip Smart card reader Smart card (EMV 4.0) Option Bay Fingerprint Scanner Green’novation in ATMs IINCREASE YOUR ATMS’ ENERGY EFFICIENCY, PERFORMANCE RELIABILITY & REDUCE TRANSACTION COST

20.  Reduced Energy Costs  Centralized Automatic Alerts for security & Fire (Auto SMS)  Online Power monitoring for better visibility  Monitoring controller & GPRS at central location  Asset Management; Better Serviceability  Reduced Operation & Maintenance costs  Integrated approach  Sustainability - Going GREEN  Reduced Transaction cost for ATMs Power Management Solutions for ATMs For 40,000 ATMs. 440 cr of investment yields a saving of 560 cr equivalent to 550 MT GHG emissions reduction over a 7 year period With Solar and Energy option controls with an investment of 1100 cr yields a savings of 1200 cr over a 7 year period equivalent to 1300 MT GHG emissions reduction over a 7 year period

21. Innovations in Software  CORE BANKING application for CBS/ FI with LOCAL LANGUAGE SUPPORT for very cost effective and faster penetration of Banking Services in Rural and Semi Urban Areas.  Image Service Bureau;Software and facilities for CHEQUE TRUNCATION Implementation  MOBILE BANKING Application to support all payments and technologies  PAYMENT SOLUTIONS for Cash Remittances TO & FROM Unbanked Masses – Helps to generate leads and Information of the Unbanked  WEB BASED ENQUIRY for all payment status for retail, corporate and participant Bankers at National Level  Solutions to make MERCHANT ENROLMENTS easier and faster for faster payments. Easy integration of PSO devices irrespective of brands with standard protocols  SINGLE VIEW of customer activity by keeping data in a unified database irrespective of the card type, access channel or transaction performed Accessed by a Portal making this easier to deploy and manage  CARD ISSUANCE SOLUTION with EMV chip instantly personalised in branch ; Mag-stripe instantly encoded in branch PIN management performed at time of account opening; Card printed instantly in branch

22. Typical Payments Platform

23. SI WITH TOTAL SOLUTIONS FOR BANKING HCL INFOSYSTEMS LTD India's Premier System Integrator and Solution Provider covering Products & Infrastructure Automation, Enterprise Networking, VPN Banking and Software services Backed by HCL's DIRECT service support infrastructure - the widest in the country. HCL is the preferred partner for many BFSI customers and its clientele has all major banks and insurance companies and is a trusted System Integrator with an ISO 9001, ISO 27000, CMM Level certification RISK MGMNT & COMPLIANCE ENTERPRISE MGMNT MIS, BI DW ATM FINANCIAL SWITCH &, ACH AML & FRAUD MGMNT SOLUTIONS MICR, CHEQUE TRUNCATION SOLUTION SOFTWARE SERVICES CORE BANKING FINANCIAL INCLUSION BANKING APPLNS MOBILE BANKING SOLUTIONS INFRA SOLUTIONS PROJ MGMNT AND FM SERVICES

24. Computing & Peripherals Desktops Laptops Servers Thin Clients Kiosks Scanners Interactive boards Projectors Plasma screens MFP/MFD Digital Duplicators POS Networking & Communication Switches Wi-Fi A.Ps Routers, cabling LL Modems BB/ISDN Modems VOIP Phones DSL CPEs EPABX + Phones IP PBX & KTS Soft Switches Audio Conf. Video Conf. Mobiles Fax Security & Surveillance Security Appliances Firewall UTM device SSL VPN Client Security Surveillance DVRs Cameras Access Control Smart card Biometrics Asset tracking RFID Fire Suppression Power & Consumables UPS Generator Cabling Earthing Consumables Batteries Toner Stationery ATMs Full Function ATM Cash Dispenser CD with finger-print Biometric and associated software. CD with UL 291 (Business Hours Safe) SIS Services Rural ATM BNA IT Infrastructure & Application ServicesFacilities Management HCL supports over 1.2M IT+OA assets annually across different industry segments spread over 60,000 branches HCL Spectrum: Services & Offerings

25. 25 INDIAs Payment Systems should be on par with global industry standards and protecting our social interests and creating a difference for A BILLION INDIANS Technology for Business Transformations Technologies can provide great performance.. Only with….. Smart Integration Smart Integration HCL INFOSYSTEMS LTD – 505 OFFICES - DIRECT SUPPORT AN ISO 9001 14001 18001 27001 and CMM INDIAN SYSTEM INTEGRATOR - 12000 cr INDIA REVENUES

26. Conclusion An Innovative, Inclusive and Integrated Solution approach allows solution scaling, cost reduction, Greener IT, and faster implementation of banking services in India An Application provider excels in application domain but lacks the experience to cover all services. A System Integrator excels in managing and providing the complete gamut of services for Payment Systems

27. Thank you biju@hcl.in 27