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The Voice for Banking and Finance in Africa
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November 2012 ÂŁ3.99
Nigeria: A Review of the Cash-Less Society Money Laundering: Economic Repercussions, the Law & Compliance
The risk-Based Approach: What Is It?
Helping Banks Manage Operational Risk and Compliance
An examination of the money laundering laws in Africa
We look at risk based approached in details and how banks can implement it
A look how ORM software can help banks manage their operational and legal risks
FROM THE EDITOR
Welcome to Technology Banker - Informing, Influencing and Insipiring Business There is probably no other industry that expertly deals with risk daily than the banking and financial sector. However, the ongoing financial crisis and the high-profile money laundering cases have driven regulators to closely monitor the banks’ implementation of compliance policies. On this issue of Technology Banker, we investigate the lowdowns of anti-money laundering law in Africa and discuss how Operational Risk Management software can
help financial organisations manage their operational, legal and regulatory risks. On the lighter side, we compare the iPhone 5 and Samsung Galaxy S3 to find out if both handsets live up to expectations. I hope that you enjoy this month’s issue of Technology Banker. If you want to share your opinions or company news, feel free to e-mail me at hope.varnes@technologybanker.com Hope Varnes, Editor
CONTENTS Page 4 Money Laundering: Economic Repercussions and the Law An examination of the money laundering law in Africa and its role in the financial exclusion of the poor
Page 12 Compliance: PCI Data Security Standards Overview We look at how banking institutions can ensure that they are PCI DSS compliant.
Page 6 ORM Software: Helping Banks Manage Operational Risk and Compliance A look at how ORM software can help banks manage their operational and legal risks
Page 14 Security News Latest news on cyber security
Page 8 Telecommunication News Latest telecommunication news across Africa and Asia Page 9 Banking News Latest news on banking organisations across Africa Page 10 Executive Interview Technology Banker talks to George Tubin, Senior Security Strategist for Trusteer, to find out if Africa is well protected against cyberattacks
Page 15 Nigeria: A Review of the Cash-Less Society Where is Nigeria’s cashless policy at now? Page 17 The risk-Based Approach: What Is It? We look at risk based approached in details and how banks can implement it. Page 20 Social Media Platforms: New Channels for African Banks to Engage with Customers Why should banks use social media? And which bank is successfully leveraging the power of social media?
Page 22 Technology Page: Virtualisation – On Lay man’s terms Techies tend to bandy about technical terms that can confuse and compound ordinary people. Page 23 MCash: A new solution for the un-banked that is more than just mobile banking An interview with MCash Business Analyst, Ronald Nyakairu, about the company’s total financial inclusion offerings Page 26 Gadget Review: iPhone 5 v. Galaxy S3 Is iPhone 5 really better than Samsung Galaxy S3, or are customers simply buying the brand name? Page 28 New Appointments Page 30 Events for your diary Events that you should not miss this month For Private Use Only
Publisher - Stefan Grossetti Stefan.grossetti@technologybanker.com
Sales & Marketing - Jenny Howard Jenny.howard@technologybanker.com
Editor - Hope Varnes Hope.varnes@technologybanker.com
Managing Editor - Remi Akinjomo Remi.akinjomo@technologybanker.com
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FEATURE
Money Laundering: Economic Repercussions and the Law The money laundering industry is probably the world’s biggest and richest industry. Everyday billions of money move between accounts across the world. Incomes from crimes such as fraud, drug trafficking, corruption, smuggling, and terrorism are moving in and out of accounts every hour, changing its facade every time, until it becomes legal money and is not traceable to its criminal origin. And this industry is bleeding money from emerging economies like Africa By Hope Varnes
A
study, released by UN-ECA (United Nations Economic Commission for Africa) in June 2012, claimed that money laundering is fleecing Africa of up to $60 Billion each year. The report calculated that, within a 39 year period, the continent has lost up to $1.8 Trillion through money laundering. This is equivalent to $22 Billion a year, which is nearly as much as its external debt and international aid.
Economic Repercussions Money laundering is keeping Africa flat on the muddy ground. It drains its currency and increases inflation The Masai Community rate. It reduces government income through taxes and deepens income gap. The problem then flows down to the poorer African communities, worsening the plight of the people. They struggle to improve their quality of life. And they suffer more health problems and have a short life expectancy. The appalling point is that, it appears that developed countries are giving Africa generous aid with one hand but taking more with the other hand. Based on the Illicit Financial Flows from Africa: Scale and Developmental Challenges, published in July 2012, global corporations are the main culprit of illicit transfers of money from Africa to the developed countries. North Africa and West Africa are the two regions that badly suffer from illicit financial flow, with West Africa accounting for 38% of the outflow and North Africa accounting for 28%.
Anti- Money Laundering Law: the Low Downs To address money laundering problems in Africa, African countries have started to enforce Anti-Money Laundering Laws. It was not until the early 2000, that the laws were enacted. In fact, Kenya just started enforcing AML in June 2010 and until August 2012; money laundering was not a crime in Uganda. Yet, despite the passing of AML in most countries in Africa, money laundering is still rife in the continent and is not showing any signs of ebbing anytime soon. This could be due to the lack of guidance on the implementation of the law and the absence of compliance assessment.
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Looking at various anti-money laundering laws in Africa, the recommendations for ‘Customer Due Diligence’ are not meaningful enough to deter money laundering. For example, all anti-money laundering law from Angola, Egypt, Uganda, Zambia, Ghana, and South Africa, state that, as part of customer due diligence, individual customers are required to present official documents, with their name, date of birth, place of birth and address to verify their identity, while Kenya ask for additional information on the source of income. Only Cameroon, Gabon and Ivory Coast stipulate that banks must collect information on anticipated account activity, source of wealth and source of funds. Confirming the identity of the account holder is only the first step in preventing money-laundering. But it doesn’t stop the account being used to keep money earned from illegal activities. Even monitoring account activities and identifying the source of wealth or funds are not enough to stop money laundering. These are just ticking the boxes exercise for banks. As articulated by Global Witness on its press statement issued in June 2012, fraudulent moneys are still moving freely around the financial system because some banks are prepared to do business with clients despite knowing that the clients are likely to be laundering money. And this is not exclusive to African banks. Take for instance the case of James Ibori, a former Nigerian governor, who received a 13 years prison sentence in the UK, after being found guilty of money laundering and fraud. Ibori held six accounts at Barclays Bank; each account received £1.5 million between 1999 and 2006, mostly in cash deposited at Barclay’s Knightsbridge branch in London. It is not clear what due diligence Barclays could have done to reassure itself that these funds were not the proceeds of corruption. Unfortunately, this scenario is not exceptional, it happens in many countries.
‘Fraudulent moneys are still moving freely around the financial system because some banks are prepared to do business with clients despite knowing that the clients are likely to be laundering money.’ – Global Witness’
Preventing Money Laundering v Exclusions for Ordinary Citizens According to the research, ‘Measuring Financial Inclusion: The Global Findex Database’, published by the World Bank in April 2012, the documentation requirements when opening an account in Sub-Saharan Africa are excluding people who work in rural areas or in the informal sector, who are not likely to have any pay slips or proof of address. The World Bank believes that the documentation requirements could be excluding 23% of legitimate potential financial customers. As a result, these customers are unable to use formal financial services for savings or credit needs. They are forced to use informal methods of savings and loans, opening them to fraud risks and higher interest rates of repayments, which can be up to 250% APR.
Anti-Money Laundering Software – Making Compliance Simple AML software enables banks to quickly, easily and efficiently perform all aspects of compliance recording and monitoring, and ensures that they comply with AML regulations using the most cost effective means. Different vendors have their own AML software versions, but AML software can generally: • • • • • • • • • •
Provide comprehensive staff training, allowing banks to train all their staff and keep them up-to-date easily and fast Efficiently and quickly identifies and updates non-compliant clients Connects to pertinent regulatory bodies that can help banks search and confirm clients’ name and company addresses Allows users to attach existing files or scanned documents (e.g. copy birth certificates) using scanners; Allows users to download and search the latest financial restriction list quickly Directly links to the internet to allow users to search for AML policies and recommendations from significant regulatory bodies Enable banks’ staff to produce suspicious activity reports and help the Money Laundering Reporting Officer (MLRO) manage these reports Helps HR track staff training and draws attention to any training insufficiencies Enables users to import client records from the bank’s existing databases, thus accelerating the application process. This also reduces time spent by staff re-keying existing data Allows users to set reminders to review client ID evidence at regular intervals, based on the of risk that the bank sets for specific clients
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FEATURE
ORM Software: Helping Banks Manage Operational Risk and Compliance By Grey Thomas
Open Page ORM Screenshot “Risk management” can mean differently in various situations. In the banking and finance sectors, it can mean protecting funds and assets, buying insurance or setting up quality control. The common denominator for all these definition is the idea that risk management is an integral part of a decision making process. In short, risk management is about ensuring that the organisation is taking risk with due consideration. In the past, organisations would lump all risk under “legal risk”, which is clearly unmanageable and also very limiting. The Compliance Consortium recommends that banks should group risks to make them manageable and as a result it has come up with four risk categories. They are Strategic Risk, Operational Risk, Financial Risk, and Legal and Regulatory Risk. The increasing threats in the financial market, and the global recession brought about by problems in the banking industry have put compliance and risk management in the spotlight. Regulators are becoming more interested in operational risk management than ever before. Risk management is now intertwined with rules and regulations in many countries including those in the African continent. As a result, operational risk is now a vital part of banking compliance. Like all other banking institution across the world, African banks are faced with the daily pressure of managing operational risks and compliance while striving to provide better and intimate relationships with their customers. And, typical of the developing world, African banks are facing a number of operational risks that need to be identified and kept under surveillance.
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Operational Risk relates to the efficiency and productivity of the banks’ operations, as well as profitability and further performance metrics. Examples of operational risk include delays or failure in the supply chain, staff engagement and retention problems, and unforeseen declining rates. Poor operational risk management can lead to a bank’s collapse. In fact, in recent years there were over 100 reported losses that exceeded US$100 million. Consequently, regulators ordered directors to have a deeper awareness of the risk they are dealing with, and the effectiveness of the procedures in place to minimise these risks. Added to this, the Basel II mandate significantly focuses on operational risks by recommending that banks should allocate a budget for operational risks and requiring them to determine, quantify, assess, regulate and monitor risk. Subsequently, acquiring formal operational risk management tools is becoming vital for African banks.
Operational Risks Management Software
Finding an operational risk management tool is not a problem, as there are a number available in the market. However, finding the right tool for a specific organisation is a different matter. Operational Risk Management Software is designed to reduce the overall risk and security repercussions that banks may face. It generally works by capturing data within the organisation, and using the data from different aspects of the business, it analyses the potential risk that the organisation is facing. ORM software helps make financial modelling easier and quicker, and as such, is a very useful tool in the directors’ decision making process. Different banks will have different organisational needs; therefore, prior to acquiring an ORM software, it is advisable that directors should first look at their core business. The software’s flexibility to adapt to changes must also be given due considerations.
‘Risk management is about ensuring that the organisation is taking risk with due consideration. And operational Risk Management Software is designed to reduce the overall risk and security repercussions that banks may face. ‘
Resources: List of Operational Risk Management Software Vendors • MetricStream ORM Solution - www.metricstream.com • Oracle Financial Services Operational Risk – www.oracle.com • OpenPages Operational Risk Management – www.ibm.com • SAS® for Banking – www.sas.com • Symbiant Risk Suite - www.symbiant.co.uk • BWise Business Control – www.bwise.com
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TELECOMMUNICATION NEWS
Nigerian Telecoms Subscription Exceeded Target
Former Executive Vice Chairman of NCC, Ernest Ndukwe revealed that Nigeria’s active telephone subscribers have exceeded the 105 million- target that the country estimated to achieve by December 2012. The information provided by the Nigerian Communications Commission (NCC) showed that there are already 105 million active subscribers in Nigeria at the end of August 2012. According to the report, the Nigerian mobile subscriptions have not only reached the predicted base line, but have exceeded it by 0.2 million. Numbers of subscribers in Nigeria still continue to grow, proving that the country really has the highest mobile penetration in the continent to date.
Tanzania: to follow steps made by Kenya on counterfeit goods According to Tanzania, fake handsets are losing the nation a vast amount of revenue and are affecting the growth of the country’s economy. To address this problem, the Tanzania Communications Regulatory Authority (TCRA) is thinking of following the steps taken by their neighboring country, Kenya, which cut services to more than 1.5 million fake handsets. TCRA is aware that mobile providers fear that they will lose a big part of their business if the switch off happens, but is adamant that consumers must understand that they too lose out when they are using fake goods, as most of them have a short life span compared to legitimate brands.
Kenya: SIM rules to be implemented by end of the year
Ethiopia: New telecoms agreement awarded to Huawei and ZTE
The Communications Commission of Kenya (CCK) is pushing their regulation policies to be implemented by the end of December. CCK has earlier announced that all SIM card regulations will be in place following the move of the commission that resulted to the service suspension of approximately 1.5 million counterfeit phones.
Ethiopia’s Minister of Communications and Technology, Debretsion Gebremichael, confirmed that the ministry has awarded the $1.3 billion government telecommunica tions contract to ZTE, China’s second largest mobile manufacturer in partnership with Huawei. Ethiopia will be signing a two year contract with the Chinese companies in the coming weeks.
The new policy will make sure that all SIM users are properly identified, in line with the commission’s effort to prevent crimes and hate speeches distributed through mobile phones. According to the Director General of CCK, Francis Wangusi, 80% of the subscribers have already registered their SIM cards.
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The agreement is hoped to enhance Ethiopia’s internet and telecom services. As of the time of writing, Huawei and ZTE are expecting to finalise the agreement by the end of October. The project is expected to start next year.
BANKING NEWS
Equity Bank – to focus on profits in Eastern Africa before expansion Equity Bank announced its plans to expand its services in Nigeria, South Africa, Ghana and DR Congo. However, Citi Group Global Markets analysts recommend that the bank should concentrate on generating profit in Eastern Africa before it expands further. Analysts added that Equity Bank must focus on increasing profits in Uganda, Tanzania and South Sudan, and on developing an expansion strategy before expanding. According to Francis Mwangi, Research Analyst from Standard Investment Bank, the recent management shake-up in Equity Bank’s operations, in Uganda, means that it needs extra time to catch up with its competitors. He added that patience is required to turn a profit. He cited that it took KCB 10 years to turn a profit from their regional operations.
Banks urged to take customer service via Twitter
FNB Named Most Innovative Bank of the Year 2012
Mobile Banking available to Namibian Market
Kenya’s statistics of unsatisfied customers are on the rise. To improve its customer satisfaction; KCB has turned to social media platforms to reach out to their customers online. Other African banks are also turning to social media sites, but many of them are not using Twitter to handle customer complaints and queries. In the recent outage problems experienced by UK and American banks, Twitter has proven to be a powerful tool for both customers and banks.
During the BAI-Finacle Global Banking Innovations Awards held in Washington in October, the First National Bank was named Most Innovative Bank of the Year 2012. The award giving body is set up to recognise banks globally for providing game-changing products and services including best practices and achievements.
Standard Bank Namibia (SBN) launched its mobile banking services in the Namibian Market on 12th October 2012. According to the Chief Executive of SBN, Mpumzi Pupuma, SBN mobile banking addresses the limited functionality of Internet Banking by enabling their customers to use mobile phones to access bank services. Pupuma added that SBN’s mobile banking service will allow its customers to bank ‘anywhere anytime,’ without relying on computers with internet to access.
Social Media experts recommend African banks should incorporate Twitter in their customer service strategy plan. Twitter offers a quick and convenient channel for customers to ask questions and lodge complaints, eliminating branch queues.
According to the Chief Executive Officer for FNB, Michael Jordaan, innovation is part of the bank’s DNA. CEO of FNB Tanzania, Richard Hudson, added that the recognition underpins their aim to persistently provide innovations that will deliver friendly banking solutions to their customers.
The current features of SBN’s Mobile Banking include view account balances and transaction history, pay beneficiary, loan repayments and stop pending transfers/payments. SBN plans to expand the features on offer when it rolls-out the second phase of Mobile Banking in the early part of 2013.
www.technologybanker.com | 9
EXECUTIVE INTERVIEW
Cyber-attacks: Is Africa Protected? Cyber-security threats gained quite a wide coverage lately, thanks to a number of high profile attacks against American banks. Technology Banker talks to George Tubin, Senior Security Strategist for Trusteer, to find out if Africa is well protected against cyberattacks
Can you tell us a little bit about Trusteer? What you do and
How important is Africa as a market for Trusteer?
It is very important and we are investing tremendously in
who is your market? Maybe I should start with some background. We find that,
the continent. As I said, we have a lot of presence there,
in the banking space, most online fraud against consumers
and we are in constant talks with central and commercial
and businesses are caused by either financial malware
banks in Africa. In fact, some of the banks we worked with,
or phishing attacks. Trusteer develops technology that
actually helped developed some of our technology. Some
detects and prevents malware from attacking the end user’s
of the earliest phishing attacks and phishing methods
device as well as detects and prevents credential theft
were, unfortunately, developed in Africa, so some of the
done through phishing. We attack the problem directly.
banks have a wide experience in that area and were doing
Others use methods such as advanced authentication
a fantastic job fighting fraud. They have been dealing with
schemes, which ask legitimate users for their authentication
this for a while and have a very deep understanding of the
credentials with the idea that criminals probably don’t have
additional technology and methods to use to help fight the
them, but, unfortunately, phishing and financial malware
fraud. So we partnered with some of these banks that have
could have gathered those authentication credentials.
been in this fight for a long time in Africa.
To address this problem, many institutions use backend
Are African banks well protected against cyberattacks?
In a way, yes. In addition to their current security controls,
risk engines to look for anomalous transactions, such as things that a user normally doesn’t do or something that fraudsters would normally do. We call this layered fraud
they use the Cybercrime and Fraud prevention services from
protection program. It is important to have layers as there is
Trusteer. Some banks use one time password for strong
no such thing as one silver bullet technology that will deter
authentication. Standard Bank was one of the first banks to
everything.
use that technology before it found its way to other parts of the continent. So in a lot of ways Africa banks have taken
Trusteer protect at the very front layer because malware and
the required steps to tackle the threats.
phishing cause most of the fraud. Trusteer’s job is to identify malware and phishing and stop them right at the front (at
the end-point where the attack is taking place) so that they
How much do you think should banks invest on security in terms of percentage?
can’t actually acquire user’s credentials and commit the fraud.
It is really for each individual bank to decide. There is no hard and fast rule. Online banking is increasing rapidly in
How big is your market in Africa?
Africa due to cashless regulations and other drivers such as better customers experience and increased usability.
We are doing pretty well in Africa. We are working with a lot
In addition, the mobile channel is highly developed and
of large banks there like Ecobank, Diamond Bank, Standard
is naturally used for mobile banking and payment. I think,
and Nedbank, as well as working with additional banks
when surveys were done, they found that banks on average
within the country. So we definitely have presence there,
spend 6% to7% of their IT budget on security. But a lot
and all of the key banks are having conversations with us.
of it depends on the particular institution’s situation and
10 | Technology Banker November 2012
the type of technology it deploys. The task is really not so
much as going by the guidelines but more about going
What is the future of Trusteer in Africa?
with the problem that needs a solution. And making sure that the bank finds the technology that will effectively and
We are already expanding our footprints and forming
efficiently help it prevent fraud and secure its institution
partnerships with more African banks as customers while
and customers. So, a bank could spend more than the
strengthening our relationships with the banks we have.
6-7% guidelines and not have an effective fraud prevention
We traditionally focus on protecting the bank’s customers
approach deployed and security in place. Another bank
and their machines from fraud. Now, we are also moving
can spend less than that but, because it selected the right
into protecting the bank’s employees’ devices against
technology the right way, it has a much more effective
Advanced Persistent Threats and targeted attacks. As we see
program which enables its growth.
in the US, the FBI has just issued a warning that fraudsters attack the bank’s employees computers, infecting them
What can bank do to protect their customer from fraud?
with malware as well as conducting phishing to get the
We can talk about education and teaching customers
system and commit fraud. And there have been a number
what they should and shouldn’t do, what they should
of successful attacks. So we are encouraging banks to think
and shouldn’t click on, what they should and shouldn’t
about protecting their employees’ devices against the
download, and I think this is something we have to continue
same type of malware that they have been protecting their
to do.
customers’ machines against. I think that is the area that we
employees’ credentials, so they can get access to bank’s
can actually focus on quite bit in the coming years in the
But I think that we are at a place where we lost that game.
African market as well.
As much as we try to educate them, there continue to be a small percentage of customers who continue to do
those things that we tell them not to do. In addition, the
What are your views on mobile banking and mobile money in terms of its role in the Africa economy?
attacks are built and designed in a highly professional manner to the extent that it’s almost impossible even for a
Africa is the world leader in mobile money and mobile
technology savvy to know the difference between a legit
banking. And other geographies are watching what is
page and a fake one. I believe the bottom line is we have
happening there to adopt some of the model. In lots of
to use technology, and we have to put effective technology
ways, the African market is the most advanced when it
solutions in place, without compromising the customer’s
comes to mobile money movement. A lot of that is due to
experience. It is about having a front end protection to
the distribution of population away from major banking
quickly identify and prevent malware and phishing attacks
centres. It certainly helps the population to be able to move
from striking as that’s where the attack is taking place, as
money using mobile P2P transfers. I think the continent will
well as back-end controls to monitor the transactions. At
continue to go down that path. As mentioned previously,
the back end, it is important to have risk engine that looks
the banks have to have the security control in place to
at transaction, and looks for things that are out of character
ensure a safe & secure mobile payment and transactions
for a particular customer. For example, certain customers
and provide their customers with the confidence to use
typically pay their bills or do certain transfer once a month
their mobile services.
on a certain day. If all of a sudden in the middle of a week these customers are sending a large amount of money
Should international company invest in the African region?
somewhere that should raise a red flag because that is a usual fraudster activity. To protect customers, the banks need to put together a combination of technologies.
Absolutely. There is certainly a lot of opportunity for investment in the African market. It is a large market and it is very advanced, actually world leading in some areas. It
In the UK for example, if customers’ accounts are
is very advantageous for companies to go into that market
compromised the banks are responsible. Is it the same?
from a learning perspective because some of the things that have been done in Africa are very different and advanced. I
No, it’s not the same and actually also differs between
think that a lot of institutions can use the market to advance
countries in Africa. It comes down to, who is responsible for
their technology in Africa and would then be able to use
the problem. In some countries, if the customer got phished
their learnings to expand to other geographies. Africa is a
and gave away his credentials, unless the bank has some
very strong technology market.
major deficiency in the process, the customer would be held responsible.
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FEATURE
Compliance: PCI Data Security Standards Overview by Aisha Benson
PCI Security Standards or ‘PCI’ as it is commonly called, is a set of standards created by the world’s five major card companies, Visa, MasterCard, JCB and American Express. Its purpose is to ensure the safe handling of cardholder’s information. Standards are applicable to all organizations that store, process and or transmit cardholder information. PCI contains twelve clear requisites intended to: • • • • • •
Create and keep a secure network Guard (cardholder’s) data at rest or in transit Keep a risk management plan Execute robust access-control systems Keep a close watch on and assess IT systems Keep a data security policy
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Bank’s Responsibilities Banking institutions are currently not required to have specific PCI DSS validation or certification procedure. However, they are still required to be PCI DSS compliant. They can do this either by running in-house checks keeping to the standards specified on the self-assessment form or by bringing in Qualified Security Assessors (QSAs) to conduct the procedure. It is the bank’s responsibility to ensure that their merchants are PCI DSS compliant, and that all theirs or their merchants’ providers that process, transmit or store card data are also compliant. As part of due diligence, acquiring banks are required to obtain PCI compliance proofs from their merchants that have over 20,000 transactions a year. It is also the acquiring bank’s responsibility to ensure that service providers and merchants are validating transaction at a proper level. Acquiring banks are also required to submit a monthly status report on compliance to the major card associations. They must also store all proofs of compliance and make it available if requested. Acquiring banks should ensure that service providers send compliance proof to card associations.
PCI DSS Best Practices: Assess - all cardholder data, inventory of all IT assets and business processes for payment card processing, analysing it for flaws that could leak cardholder information. Remediate - correct all liabilities. Never store cardholders’ information unless needed. Report - compile and submit required validation records and reports to the acquiring banks and appropriate card brands.
PCI DSS SAQ (Self-Assessment Questionnaire) The PCI DSS SAQ is a method used to authenticate merchants and their service providers. It assists organisations to self-evaluate their PCI DSS compliance. Banks must request for this document if merchants are processing over 20,000 transactions a year. Each SAQ includes a series of yes or no questions regarding security conditions and practices. There are different versions of the PCI DSS SAQ for different business scenarios. The form is made up two fundamental parts: a set of PCI DSS requirements that are applicable to service providers and merchants, and an Attestation of Compliance. This will be the organisations’ certification that they are qualified to conduct the appropriate Self-Assessment. Merchants are also asked to fill in the Merchant Feedback forms. Merchants and service providers’ feedbacks are very critical in ensuring that utmost levels of quality and professionalism are observed during audits and scans. Apart from intensive training and re-evaluation, the performance of each security professional company and individual is regularly evaluated. These feedbacks are vital and will be the basis for improvement.
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SECURITY NEWS
Malware Spreads via Skype In early October, a new ransomware attacked the online community via Skype. Pretending to be from someone in the users contact list; the attackers send Skype users this message: “lol is that your new profile pic” to gain entry into their computers. The message was also translated in different popular languages. A ransomware is a type of malicious software that works by restricting computer access to users and requiring them to pay for its removal. It also works as a click fraud, by imitating legitimate actions of users, and clicking ads to generate revenue, or steal money. The malware is spreading fast. Users are warned to be wary, and not to click on dodgy links even if they look like they are from someone they know.
Social Networking Sites, Common Target for Malwares Another new malware, NGRBot, is spreading via email that appears to be a link to Skype. NGRBot, also known as Dorkbot, poses like a legit Skype link and also uses the Skype icon. Once the recipient of the link clicks on it, a file will be downloaded to their computers with filename skype_09-10-12_image.exe. The file will automatically launch itself and send spam e-mails to all the addresses in the recipient’s address book. NGRBot gathers login information found on social networking sites like Twitter, Facebook, Foursquare and email accounts such as Gmail, Hotmail and Yahoo.
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CSIR Warned Africans about Online Sharing October is the International Cyber Security Awareness Month, and the Council for Scientific and Industrial Research (CSIR) warned South Africans to be mindful of the things they post online especially on social networking sites such as Facebook and Twitter. According to CSIR Researcher, Zama Dlamini, sharing personal information over the internet is becoming second nature to people. And this is making individuals vulnerable to cybercrimes. Cyber criminals can have access to all information posted over the internet which they can collect and use for fraudulent transaction, including identity fraud. Dlamini added that the internet has no boundaries, and users must learn to protect themselves against cyber criminals while they are online.
Cyber Espionage Targeting Banks Kaspersky Lab has discovered that a new variant of Gauss is targeting online banking customers. Gauss is a cyberespionage tool kit designed to steal sensitive information such as banking data. This new malware has similar features as Flame, Stuqnet and Duqu. Gauss is a large spy operation that infiltrates systems of possible targets, collects data and then analyses them to find out if they fit their criteria of potential victims. Gauss targets banking institutions and monitors financial transactions of banking customers.
FEATURE
Nigeria: A Review of the Cash-Less Society by James Akinolu Sanusi Lamido CBN Governor
E
arly this year, the Central Bank of Nigeria (CBN) began implementing its Cash-Less Policy, although, it diverted from its original plan, to introduce the policy nationally, in January 2012. Instead, it rolled out the policy in stages, and in August, this year; CBN announced that it will extend the policy from Lagos to Ogun, Kano, Rivers, Anambra and one more state in the North East and FCT. The policy was introduced in line with Nigeria’s Vision 2020, with a goal of turning the country into one of the world’s top 20 economies by 2020.
Why go cashless? CBN reasoned that the cashless policy will drive the development of the country’s payment system and will bring it in line with Vision 2020 goals. It also added that it will reduce the cost of banking services, including lending cost, and increase financial inclusion by delivering efficient transaction alternatives and wider reach. One of the unique selling points of the ‘cashless policy’ is that it reduces the risk of crimes associated with cash. CBN argues that, with the use of other payment alternatives, people will no longer need to carry a vast amount of cash within their persons or keep them at home, thus reducing the temptation for criminals to rob people or burgle their homes. CBN also believes that the policy will give Nigerians cheaper access to banking services and credits. For businesses, CBN claims that the policy will give them faster access to capital, cut revenue leak, and reduced costs for handling cash. CBN also added that the policy will benefit the government through increase collection of taxes, financial inclusion for the unbanked, and heightened economic growth.
How the policy affects the end customers? On the enforcement of the policy, daily withdrawals and deposits will be limited to N500, 000 for individual customers, and N3, 000,000 for corporate customers. Any transactions above the limit will incur a fee. Individual will have to pay 3% of the amount over the withdrawal limit and 2% of the amount over the deposit limit. Corporate customers, on the other hand, have to pay 5% on the mount over the withdrawal and deposit limits. The policy also stated that checks above N150, 000 cannot be cashed over the counter; instead they will have to go through the clearinghouse. Banks are also no longer allowed to offer cash in transit (CIT) lodgment services to its customers. Instead, customers can use the services of CIT companies that are licensed by the CBN. Breach of this policy shall attract a fine of N1.0 million per type of movement.
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Looking at the direct effect of the policy to customers; it is no surprise that the public are unhappy about it. In fact, according to the survey conducted by the Dept. Of Accountancy of Auchi Polytechnic, 55.7% of the public do not like cashless economy, and 67% do not think that the cashless policy should be introduced in Nigeria now. So far, they cannot see the direct benefits to them. For instance, it does not appear that they benefit anything by having to pay for depositing money above the limit and also pay banks commission on transaction (COT) charges. Even if COT is removed, paying 1.25% for every transaction using cards is more expensive than paying the banks’ COT charges, which is equivalent to just 0.5%. From the merchants’ point-of-view, paying 1.25% on every transaction they process is an extra charge that will eat into their profits, which they would not have to pay if they are paid in cash. If they are currently not having any problems accepting cash at the till, the charge is just an extra expense with no added value. Not only that, but for small merchants who depend on quick selling cycle, receiving cash after every transaction ensures that they have the money to pay for their stocks the next day. By accepting payment by credit card or debit card, the money is not credited into their account until 24 hours after the transaction. If customers use cards that were issued abroad, merchants would not get their money until three days later. Again, this makes the policy unpalatable to merchants.
Even if, more bank branches are set up in the rural areas, many of Nigeria’s citizens still cannot use the facilities. In an EFInA ‘Access to financial services in Nigeria 2008 survey’, 48% of the respondents said that they do not have enough money to open a bank account. Seventy million Nigerians are living on less than $1 a day, below the poverty threshold of $1.25/day. With only that amount of money at their disposal daily, maintaining a bank account is costly.
Where is the policy at now? As of October, 2012, the adaption of the Cashless Policy is still below expectation, according to Bismark Rewane, Managing Director and Chief Executive of Financial Derivatives Company Limited. During his monthly economic news and views, Rewane said that less than 3% of the total sales in supermarkets and shopping malls are through debit cards. In September, he warned that POS use in the country is still very low, with only 10% of the machines are in used in Lagos. He added that the low POS terminals and ATM penetrations in the country are blocking the progression policy.
Infrastructure Limitation The public’s outcry against the policy may or may not affect the success of the policy. After all, people’s habits change, and if they have no choice, they adapt. However, the policy has one major stumbling block that will derail its success, and that is the limited infrastructure in the country. ATMs and POS machines need electricity, and fast and reliable internet connection, which the country currently lacks. At present, CBN is working with NCC and providers of telecommunication services, to arrange for a dedicated connection between all POS system. However, this is not yet in place, and there is no definite time frame as to when this will happen. Currently, telecom providers cannot guarantee 100% connectivity. Additionally, electricity supply in the country is not reliable, and blackouts are still a common occurrence. The scarcity of ATMs in rural areas is also a big problem. Most of the 10,000 ATM units deployed nationwide are located in urban areas, and many of them are concentrated in Lagos. With 50% of the population living in rural areas, going cashless could mean excluding a huge number of people.
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Bismark Rewane - Managing Director and Chief Executive of Financial Derivatives Company Limited
‘The adaption of the Cashless Policy is still below expectation. Less than 3% of the total sales in supermarkets and shopping malls are through debit cards.’ – Bismark Rewane, Managing Director and Chief Executive of Financial Derivatives Company Limited’.
FEATURE
The risk-Based Approach: What Is It? by Hope Varnes Mr. Bjørn Skogstad Aamo FATF President
E
arlier anti-money laundering policies were extremely r gid. Banks were often left using the same level of client due diligence (CDD) to loyal clients applying for loans, as they would to a convicted fraudster who simply walked into their branch with a suitcase heaving with cash. That kind of system was certainly not an efficient use of the banks’ resources, and merely resulted to a ‘tick the box’ attitude. To address the issue FATF included the risk-based approach in its anti-money laundering recommendations. However, its implementation is not mandatory. Each member country has the freedom to decide whether this approach is suitable for their territory.
The foundation of risk-based approach
Risk based approached worked on a premise that service providers know their clients and their business better than any government agency. And that it is in their best interest not to engage or be used for any illegal activities that can damage their business. By giving banking sector the power to decide and direct their resources to where they think the risks are highest, they will be able to target money laundering effectively. Various Money Laundering Regulations passed by African countries specify the minimum requirements for CDD that the government deems will assist banks and other regulated sectors to recognise potential risk of laundering, or provide an efficient paper trail for prosecution if laundering occurs. It is then up for banks to assess the risks posed by their customers, and to apply the CDD requirements in a manner that will fit the risks.
Factors influencing the level of risks
There are a number of factors that can affect the customer’s risk level, including the financial products required and the type of customers that the bank serves. In cases where banks’ staffs are dealing with existing customer whose identity has already been verified, but the new transaction is a higher risk for money laundering, obtaining further identity documents is rather pointless. With the risk based approach, the banks’ staffs can decide to move their attention towards thorough and constant observation of the client’s account activities, concentrating on the particular money laundering risks presented.
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FATF coverage map
Assessing Risk Profile
The bank’s risk profile differs according to its size, type of clients, and product offerings. The bank’s risk level of money laundering and terrorist financing can be affected by the services it provides and its customers’ demographic, including: • Turnover of clients – It is common-sense that a bank with a stable client base has a lower risk profile than a bank with a higher client turnover. • Providing banking services to politically exposed persons (PEPs) - Not all PEPs’ accounts are going to be used for money laundering, but due to the nature of the customer’s status, it does increase the bank’s risk. • Providing services to customers without face-toface contact • Operating in places with high levels of criminal activities categorised as acquisitive crimes, or having customers convicted of acquisitive crimes, as this raises the probability that customers may own properties acquired from illegal activities • Providing services to customers connected to countries harbouring terrorist groups or known to have high cases of corruption • Providing services to organisations with complicated ownership arrangement
‘Risk based approached worked on a premise that service providers know their clients and their business better than any government agency. And that it is in their best interest not to engage or be used for any illegal activities that can damage their business.’
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Assessing individual customer risk
When assessing individual customer, banks may consider whether: • The customer is within the high risk category • The bank staff is satisfied that the CDD document that the customer provided is reliable, and can verify the client’s identity • The bank’s staff clearly understands the customers’ role in the organisations they represent and that the ownership system is clear • The service required by the customer involves a higher risk of laundering or terrorist financing • The customer will handle the funds without any underlying business • There are any part of the particular service that will move the risk level Considering these points when carrying out client due diligence can help banks determine the level of risk posed by the client and helps them adjust their internal controls appropriately. For instance, if the bank is satisfied that the client has established his identity, but the transaction poses a high risk, it can decide to closely monitor the transaction instead of seeking additional identity verification. On the other hand, if the bank has concerns about the client’s identity, but the transaction poses a low risk, it can spend its resources on authentication and monitoring the transaction using its standard procedures. To ensure that banks can demonstrate that they are compliant with anti-money laundering law, they need to: • Meticulously document their risk-analysis • Have written policies on how to implement the AML conditions for a particular risk-profile • Keep specific notes on their judgements, specifically on cases with higher risk
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www.satadsl.net www.technologybanker.com | 19
FEATURE
Social Media Platforms: New Channels for African Banks to Engage with Customers Social media platforms like Facebook, Twitter, LinkedIn, Pinterest and Foursquare have had a great impact on consumers’ behaviour in the last five years by Andrew Thompson
C
onsumers have taken to social media to check out and support their favourite brands. And most significantly, they use social media platforms to air out their grievances against their current suppliers. On their part, Social Media platforms have proven to be powerful tools for customers against their providers. For instance, a study conducted by Brand Embassy between 11 and 24 June, 2012 revealed that social media can affect a bank’s brand. According to the report, the slow response of RBS, a bank partly owned by the UK government and the parent company of NatWest, had given customers the chance to discuss on Twitter, NatWest’s outages and allowed negative speculation to get out of hand. As a result, NatWest’s customer satisfaction rating fell by 13%. The report also added that 90% of retail banking customers uses Twitter to publish their complaints. Banks all over the world, including banks in Africa, have realised the value of Social Media to customer engagement, and have used it to reach out to customers. But so far very few have made a success of it. There is currently no specific data as to how successful corporate entities are in the African continent in their use of Social Media. However, taking South Africa’s data, 95% of corporations are using social media, in some form or the other, mainly for PR and marketing. Fifty one per cent of these corporations are still uncertain whether they are effective or not. This could be mainly due to the fact that many organisations are still unsure how to measure the effectiveness of social media platforms.
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Why African Banks Should Take Social Media Seriously?
There is no doubt that Social Media can impact the customer’s perception of their banks, and consequently, affect the bank’s bottom line. However, before banks jump into the social media bandwagon, they first need to understand the sentiments of the market and how they use the platform. For example international banks with a presence in Africa should not simply replicate their social media strategy from the west in the African continent. Africans have different needs, and use social media differently from the west. For example, audience from Europe and America uses social media playfully, while African audience uses it with deliberate purpose, such as to network with friends, to learn or to bank. They are also younger, with 45% of the audience are ages between 16 and 24, compared to 27% young users worldwide. They also have less spending power and slower connectivity. So, as a result, they don’t use social media for gaming or shopping, but rather more focused on their immediate needs from a platform that is accessible to a wide range of handsets. Most importantly, for 58% of the African internet audience, social networking is a very important online activity, compared to only 26% of the global audience. And significantly, 70% of the African online users admit that they use social media platform to learn about new brands and products.
How Can African Banks Utilise the Power of Social Media? Providing Customer Service
In the US, 60% of customer who contacted their credit card providers through social media got a reply. Why? Because failure from the company to reply can damage its brand image, and equally, a quick reply reveals the brand’s commitment to helping their customers. Furthermore, their effort is not only seen by customers but by other audience connected to their customers. Therefore, they don’t have to pay a huge amount on PR and advertisement to show their positive work.
Providing Testimonials
Customers still puts a huge credence on their peers’ views, and when it comes to product reviews, they want to hear from strangers who they believe does not have a hidden agenda. Social media is a cheap channel for customers to hear other customers’ experience with the bank, and also share their experiences.
Product Promotions
As already mentioned, 70% of African audience use social media to find out about new products, therefore, it will be foolish for the banks not to use the platform to reach out to possible customers.
‘The slow response of RBS, a bank partly owned by the UK government and the parent company of NatWest, had given customers the chance to discuss on Twitter, NatWest’s outages and allowed negative speculation to get out of hand. As a result, NatWest’s customer satisfaction rating fell by 13%.’ – Brand Embassy.’
Meet the African Banks in the Social Media Sphere First National Bank
FNB in South Africa has a very active Facebook page and uses it to deliver its products to its customers. Earlier this year, it launched ‘FNB Banking on Facebook’ which allows customers to link their Facebook Profile to their Mobile Banking Profile. Customers can then use their Facebook account to check their balance and buy FNB pre-paid products. FNB also uses Facebook to allow customers to buy vouchers to send to their Facebook friends, which their friends can redeem for cash.
KCB Bank Groups
KCB is also active on Facebook, with nearly 4000 fans. The bank allows its customers to leave post and queries on their page, which are always replied. People can also post job queries. On the downside, if KCB does not answer quickly, readers can also see the customer’s frustrations on the page. KCB also uses its Facebook page to promote new products and update people on events sponsored by the bank.
Standard Bank
Standard Bank has an active Twitter account and a Facebook page with 8,622 fans. The bank’s page mainly focuses on information broadcasting and product promotion.
Standard Charter
Standard Charter Kenya also uses Facebook to successfully engage with its customers. On the page, customers can leave questions related to their accounts or other financial queries. They also post updates on current technical issues that may prevent customers from contacting their branches over the phone. Like many of their competitors, Standard Charter Kenya also uses the platform to promote their products and sponsored events.
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TECHNOLOGY
Virtualisation – Considerations and Business Applications Techies tend to bandy about technical terms that can confuse and compound ordinary people. And one of the terms flying about is ‘Virtualisation’ by Lin-ay D
Image by VMware
A
s I like to make life easier, I’ll try to explain it as I understand it. After all, understanding is the first step to using a tool successfully. And virtualisation is just another business tool. Please bear in mind that I’m not a technical person. So, if you find my explanation quite elementary then, please pardon me. There are different types of virtualisation, but I will not confuse matters, so to make it clear, I’m talking about ‘server virtualisation’.
What is Virtualisation? To define it simply; virtualisation is running several separate operating systems in one physical machine, making one single machine do the work of a number of machines. Much like maximising staff efficiency, so the business doesn’t need to hire an extra pair of hands. The main machine can be located within the business premises or in another continent. Each operating system running on the main server can work alone with other machines, applications, data and users. Virtualisation is not a new concept. IBM started developing it in the 60s, and in the 70s it launched the Virtual Machine Operating Systems.
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Applying Virtualisation in Business The key issues that drive virtualisation are the need for businesses to maximise efficiency without sacrificing service, and of course, to control cost. So far, it is serving its purpose. For example, according to Gartner report, virtualisation can reduce energy consumption by 82% and reduce the need for floor space by 85%. Virtualisation also saves businesses money by recovering lost data. The system in itself is a disaster recovery tool. Virtualised images can be used to recover data in case it is accidentally lost. However, before jumping into the bandwagon, an organisation must consider the costs carefully, because the costs it saves may not be enough to cover the expenses it will incur. One of the major running costs to consider is software licensing. It can end up more expensive than the hardware. So, when calculating the total cost of virtualisation, include the cost of hardware maintenance, energy use, office space, and software licensing.
VENDOR
MCash: A new solution for the un-banked that is more than just mobile banking Mobile banking has taken Africa by storm. It is hailed as the road to financial inclusion for the un-banked, but what about for those people who cannot afford a mobile phone or those who do not have access to mobile phone connection? Technology Banker talks to Ronald Nyakairu, MCash Business Analyst, to find out how the company offers total financial inclusion to the un-banked, with or without the help of mobile phones
Can you tell us a little bit about MCash?
MCash is an all-inclusive account targeting the Ugandan market. We partner with local banks through a joint venture and in that local partnership we are hoping to provide financial solution and bridge the gap between the people and the financial services. As you know, there is a very large un-banked population in Africa. About 80% of the people in Uganda don’t have access to formal financial services. So, with our product we are aiming to make it easy for customers to open accounts and have greater access to financial services, without the need for traditional bank branches.
What makes MCash different from its competitors?
Majority of the solutions in the market are currently from telecom providers. MCash is a bank card model provided by the Housing Finance Bank. And we are regulated by the Bank of Uganda. To ensure that our services are secure, we use various multilevel of authentication. Customers not only can access their accounts using their phones, but also with their finger print or an NFC provided card. The modern technology in the card allows two levels of security for authentication. Unlike normal credit or debit card, which only ask customers for their pin, we ask for the pin and we also confirm the customer’s presence during the transaction by using biometric tools, such a finger prints or with their NFC card.
You seem to cover a lot of areas that your competitors don’t reach...
Yes, we like to offer something different to the market than just the standard mobile money transaction. Although there is a high mobile phone penetration in Uganda, there is still a high percentage of the population who have no access to a mobile phone or can’t afford to have one. So we offer them a solution that is readily available.
How could MCash help Ugandans in diaspora?
We currently have a remittance service from America with a plan to expand into Europe. We can reach the rural areas, so people can send money to their families easily instead of using Western Union, which is more concentrated in urban areas.
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What is your view of the current technology landscape in Africa?
Since the turn of the century, there are millions of people using mobile and digital computers in Africa, which make it more affordable. More people have access to make calls which help in the development of new mobile products. The use of mobile money and mobile transaction applications are growing and not only Africa but also in American and Europe. I think this has been very helpful to smaller businesses, which struggled to get access to big financial institution. There is also an increase in infrastructure, which makes it easier and faster to bring products into the market as the public has already had exposure to similar products.
If you can change three things in Africa, what will they be?
The first thing I would change is the coverage. I’d like it to be wider because a lot of our market segments are unbanked. They are in rural locations where sometimes telecom companies don’t have access, so it is very difficult for us to get these people to use our services due to poor network availability.
The second is regulation. Banks will serve customers better if they can forge partnership and opportunities in order to build an ecosystem for a cashless society. For example, Google partnered with Ask Jeeves, to dominate the search business, they found a need for each other and they help each other, and I think partnership benefitted both companies.
Lastly, it will be the profession. It is really hard for people who are so used to cash to embrace a cashless society, so they need more product knowledge. Companies need more understanding on how the consumers use the technology. For that, we need professionals with expertise.
Is MCash looking outside of Uganda?
We actually have several operations in other African countries, which are under our African subsidiary company, MobiCash Africa. We have forged a partnership with other local banks. At the moment, cross border transfers are prohibited, and there is no way to make partnerships across the border. But hopefully in the next couple of years the regulations will change and allow us to partner with other regional organisations.
What are your brightest expectations for Africa?
Open regulation, especially in East Africa where there is a regional block. If the regulation is opened, it will give us a larger market.
Also, more government involvement, currently, in Kenya and Tanzania, the government is using mobile money to collect tax through e-tax. This makes tax collection more efficient, and it increases tax revenues. If there is synergy between government microfinance projects in agribusiness or small business support, it can help support these products reach a larger market, increasing the accessibility and volume of transactions, making it easier for money to reach the rural localities and making the whole system more transparent.
Are there any other ventures in Uganda that is similar to MCash?
I don’t think so. Telecom providers use mobile phones for money transaction, and banks are using debit cards. Our product is the only one in the market that is accessible to all, even those without phones. Our product is also the most secure in the market. We use five different access channels, and we are the first to use biometrics authentication.
Of the 25 Million un-banked in Uganda, what is your percentage of the market?
We officially launched our product in July and today we already have 20,000 accounts and about 65 agents. So we have grown very fast in a short period.
What are your expectations with in the next 12 months?
In the next 12 months, we are looking to reach 1 Million subscribers. That is our first goal. Once we hit that mark, we will start building several new products.
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Who is going to tell them about the bright side of African economy?
The Voice for Banking and Finance in Africa
GADGET REVIEW
iPhone 5 v. Galaxy S3 by Anton Lapuz
T
he people at Apple’s marketing department are geniuses. They kept their market constantly on the edge of their seats, waiting for iPhone’s next offering. Of course, their strategy worked. Within an hour after iPhone hit the shelves in September, it was sold out. The world was so engrossed on the launched of iPhone 5; it barely noticed that Nigeria got its first mobile wallet service On the other hand, its bitter rival, Samsung S3’s debut on the market was more sedate. There was no funfair or panic buying. Now that all the excitement has calmed down, and customers had the chance to get to know their smartphones, it is time to find out if iPhone 5 lives up to its hype and if Samsung S3 is as sedate as its own launch.
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‘Samsung is just not cool enough.’ - UK Judges Lord Justice Longmore, Lord Justice Kitchin and Sir Robin Jacob.’ Samsung Advert
Look and Feel
When it comes to thickness, there is only a 1mm difference between iPhone 5 and Galaxy S3. iPhone 5 measures 7.6mm thick while Galaxy S3 is slightly thicker at 8.6mm. However, there is a marked difference between the two rivals when it comes to weight. Apple’s iPhone only weighs 112g against Samsung Galaxy S3’s 123g weight. Consequently, the iPhone feels a lot lighter. In fact, it feels just like an empty shell. On the plus side, Galaxy S3 is easier to handle than the iPhone, even though it is bigger in comparison. The iPhone 5’s angular shape just makes it a little bit uncomfortable to use. What lets Galaxy S3 down on design is its plastic chassis. The iPhone 5’s aluminium back plate just gives the handset an extra edge over the Galaxy S3.
Display Screen
Again, there is very little difference between the two handsets when it comes to the size of the display screen. Apple’s iPhone 5’s 4in screen is 0.8in smaller than Galaxy S3’s 4.8in screen. The iPhone 5 resolution is slightly higher at 326ppi compared to Galaxy S3’s 306ppi, but this difference is not visible to the human eye, so barely makes the difference in the viewing quality. When it comes to the viewing experience, Galaxy S3’s Super AMOLED feature makes videos and pictures look brighter. For busy business people who are always on the go, smartphone performance is a key buying consideration. So, how do the two handsets perform in this category?
Performance
Operating System
Battery Life
Apple’s iPhone 5 has a 1.2 GHz dual-core A6 processor while Galaxy S3 has 1.4 GHz Cortex A9 quad-core chip. Both processors sound impressive, but they only make sense to techies. The main question for end users is: how do they deliver? Both iPhone 5 and Galaxy S3 are speedy when it comes to web browsing and performing other tasks. Considering that the Galaxy S3 is heavy on customisation, which generally slows the smartphone’s performance, this handset matches iPhone 5 head-to-head. Comparing operating systems between the two handsets is not straightforward, since it is subject to personal preference. IOS fans will find Android operating system confusing and vice versa. It is well publicised that the iPhone 5 map application is not on par with Google maps and have been causing customers some frustrations. Of course, Galaxy S3 does not have the same problem as it runs on Google Android 4.0 ICE. However, it is not Google map that gives Galaxy S3 an edge over iPhone 5, but its capability to support near field communication (NFC), making it suitable for contactless payment. And in Africa, where mobile money technology is growing in leaps and bounds, Galaxy S3 has the making of the elite’s choice of smartphone. When it comes to battery life, Samsung Galaxy S3 wins it hands down. Apple’s iPhone 5 may have a bigger battery than its predecessor, iPhone 4, but it does not last any longer. You will still end up having to charge it every night, especially if you are a heavy app user. Samsung Galaxy S3, on the other hand, seems to last for two days. Both handsets come in 16 GB, 32 GB and 64 GB storage capacity. However, Samsung Galaxy S3 users have the option of expanding its storage by using a micro SD card, giving them another 64 GB of storage space. Galaxy S3 users also enjoy another 50 GB of free storage on Dropbox, which is 10x more than iPhone 5 users get from Apple’s iCloud.
Storage
All in all, and considering it cost less than iPhone, Samsung Galaxy S3 is a much better proposition than iPhone. That is if you are not bothered with the snub factor that comes with owning an iPhone 5. To borrow the words of UK Judges Lord Justice Longmore, Lord Justice Kitchin and Sir Robin Jacob, when they rule in favour of Samsung in the ongoing saga between two rivals... ‘Samsung Galaxy S3 is just not cool enough.’
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NEW APPOINTMENTS:
Who’s Who in the African Banking, Finance & Telecom Sectors “You put together the best team that you can with the players you’ve got, and replace those who aren’t good enough.” - Robert Crandall By Arthur De Los Reyes Julius Kangogo Kipng’etich Appointment: Chief Operating Officer, Equity Bank Group Country: Kenya Specialty: Banking Management Julius Kangogo Kipng’etich, former Board director of Equity Bank Kenya, was appointed as the new Chief Operating Officer (COO) of the Bank Group. Kip joined the group after eight years of successful career as a director of Kenya Wildlife Service. In his term as a director in KWS, he made remarkable contributions by improving the Management of the Parks and transforming the Government Parastal into major business outfit. Kip is also a member of Kenya Tourist Board and serves on the Boards of Kenya Forest Service, Police Oversight Board, Moi Girls’ Eldoret, Starehe Girls’ School, Starehe Boys’ Centre, Kenya Tea Development Authority and the Kenya Red Cross Society. He is also a member of the Mau Task Force, The Steering Committee for the Marketing of Kenya Stadia and The 1st University Council Member-Management University of Africa. In 2009 he was won the COYA 2009 Chief Executive Officer of the Year Award, and also garnered two awards, EBS and CBS, from the Head of State. During his tenure, KWS won prizes in areas of Leadership, Management and Corporate Governance.
Omar el-Sheikh Appointment: Non-Executive Chairman, Telecom Egypt Country: Egypt Specialty: Telecommunication and Information Technology Omar el-Sheikh has 36 years’ experience in telecommunication and information technology industry. He spent most of his career with various multinational companies including Vodafone, Alcatel Group, NCR Corporation and Eastman Kodak.
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Obiageli Katryn Ezekwesili Appointment: Board Member, Bharti Airtel Limited Country: Nigeria Obiageli Katryn Ezekwesili, the former World Bank Vice President for Africa has been appointed as the new board member of Bharti Airtel Limited. Obiageli Katryn Ezekwesili is also a respected expert in economic reforms and economic governance. Her reputation in transparency, accountability, good governance, and anti-corruption movement is renowned worldwide. She is also one of the co-founder of Transparency International. Ezekwesili also acts as a director of the Harvard-Nigeria Economic Strategy Program in Boston and Abuja. She holds a master’s degree in international law from the University of Lagos and masters in public policy and administration from Harvard’s Kennedy School of Government.
Diederik Vos Appointment: Chief Executive Officer (CEO), SQS Software Quality Systems AG Country: South Africa SQS Software has appointed Diederik Vos as a new Chief Executive Officer (CEO) and Chairman of the Board. Diederik Vos has been a member of the SQS board and served as the Chief Operation Officer (COO). In his term as COO, he made a major contribution in managing the strategic development of SQS over the past year. He directed the business on a number of principal industries in banking including retail, logistics, insurance, energy, manufacturing and telecommunications. Vos has a broad knowledge in the areas of managed services, IT services and management consulting. He also works in a number of companies including AT&T, Lucent Technologies, Avaya and International Network Services.
Other Appointments at a glance: The Equity Bank Group also announced the appointment of Samson Meshack Odour as the new Group Finance Director. Before he took up the new position at Equity Bank Group, he is the Chief Financial Officer (CFO) of Domestic Bank Africa.
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EVENTS FOR YOUR DIARY
What: AfricaCom 2012 When: 13 - 15 November 2012 Where: CTICC, Cape Town, South Africa Website: http://africa.comworldseries.com
What: Commonwealth Finance and Investment forum for ICTs When: 15 - 16 November 2012 Where: America Square, London Website: http://www.events.cto.int/default.aspx?event=ICT_finance
What: Mobile Money Global 2012 When: 19 - 22 November 2012 Where: Atlantis, The Palm, Dubai Website: http://www.mobile-money-gateway.com/event/mobile-money-global-2012
What: Cards & Payments Innovation Europe 2012 When: 20 - 21 November 2012 Where: Amsterdam, Netherlands Website: http://marketforce.eu.com
What: World Telecommunication Standardization Assembly When: 20 - 29 November 2012 Where: Dubai Convention Centre, Dubai Website: www.itu.int
What: The European Exchanges Summit When: 26 - 27 November 2012 Where: Grange Tower Bridge Hotel, London Website: http://marketforce.eu.com/Conferences/exchanges12
What: Powering Africa: Finance Options When: 26 - 28 November 2012 Where: Cape Town, South Africa Website: http://www.energynet.co.uk/PA/PAFO2012/index.html
What: The Future of Retail Banking When: 28 - 29 November 2012 Where: Hilton Tower Bridge, London Website: www. marketforce.eu.com
30 | Technology Banker November 2012
Human Capital Performance Improvement Audit Are you completely satisfied with the Return on Investment (ROI) from your current training? Are your training budgets driven by business goals and Key Performance Indicators (KPIs)? Are you holding training vendors accountable for quantifiable business improvements? Based on over 25 years of providing the BEST! Training, Communication and Consulting Solutions to the banking industry worldwide, the leaders of Global Bankers Institute have designed the Human Capital Performance Improvement (HCPI) Audit. The HCPI Audit is the first-of-its-kind service to offer the following benefits: 1) Ongoing Performance Improvement Plan based on cascading Strategic and Operational Goals. 2) Comprehensive Training Plan with behavioral outcomes aligned to Key Performance Indicators (KPIs) and Key Performance Measures (KPMs) resulting in a concrete Return on Investment for all training. 3) Effective Training showing measurable benefits in Sales, Customer Satisfaction, Operations Productivity and Quality, Employee Motivation, Risk, and Compliance, as well as any other identified bank goal. 4) Efficient Use of Training Budget through improved curriculum priorities and vendor selection and negotiation. 5) Holding Training Vendors Accountable by making them partners in the HCPI Audit process and requiring that they accept responsibility for delivering measureable improvement through their programs. Please contact me to let us know how we may best serve you. Global Bankers Institute brings experience, innovation and value, providing the BEST! Training, Communication and Consulting solutions to the financial services industry.
Dr. Linda Eagle Founder and President Global Bankers Institute 245 Park Avenue New York, NY 10167 +1.212.579.5500 ext. 3106 +1.646.236.7538 (mobile) linda.eagle@globalbankersinstitute.com www.globalbankersinstitute.com
Global Bankers Institute
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