Colombia in m-banking service to be SIM-based

Gemalto has announced the successful commercial launch of its m-banking service with all Colombian GSM operators and Colombia's largest banking network, Redeban Multicolor.

The solution allows the mobile subscribers to perform secure transactions on the move and access banking services, transfer money, check their account balance, recharge mobile pre-paid, and pay bills. These services are accessible through an easy- to-navigate menu 24 hours a day.

The m-banking platform includes a secure software application stored in the SIM card, a server and software that interprets the messages that are exchanged between the banks and the SIM. The solution offers security in the entire transaction process, since the messages are encrypted in the SIM chip and decrypted at the banks' server, which translates the messages to a specific format.

“Mobile banking should trigger a significant benefit for the banks as it offers a new channel for customers to interact with them, while enabling an increase in data revenues and ARPU (Average Revenue Per User) for the operators,” comments Rodrigo Serna, VP, telecommunication for Gemalto in Latin America. “Moreover, users obviously gain in convenience and mobility as the banking services can be accessed at any time from any place with outstanding security.”

Available at Comcel and the other Colombian GSM operators, as part of their value added wireless services portfolio, in coordination with Bancolombia and Banco AVVillas, through Colombia's Banking Network, Redeban Multicolor, the m-banking service is already exceeding stakeholders' expectations.

“The m-banking menu is already available to more than 20m GSM subscribers in the country. Our initial expectation is that 20% of this customer base will execute at least five transactions per month,” says Valentin Echeverry, VP, technology and operations, Redeban Multicolor.

“The service is already generating demand, balance check and pre-paid re-charge being the most required services. A few weeks after the launch, the first results show a very successful uptake of the service with more than half a million transaction making an average of 6 requests per active user, per month. To us it clearly showcases the winning combination of the solution: convenience, ease-of-use, mobility and security,” Echeverry concludes.