Poste Italiane Group

1
Poste Italiane Group e-Banking Services
2
Agenda

• Overview of Poste Italiane
• ICT resources
• e-Banking services

3
Poste Italiane Group Profile
Groups Profile
Business Units ()

• Employees 155.000
• in Post Offices 60.000
• on Mail Delivery 42.000
• Network
• Post Offices
  14.000
• Served Houses
  24 mln
• Distribution Centers
  900
• Banking services
• Accounts
  5 mln
• On line accounts
  650.000
• Debit and credit cards
  9 mln
• Poste pay cards
  3 mln
• Revenues 17 Mld
• Mail/Logistic Services 5,3 Mld
• Insurance Services 7,0 Mld
• Financial Services 4,4 Mld
• Other Revenues 0,3 Mld
• Rev. Growth 2006/2005 3,5

Business Unit Mail
Mass Printing, Direct Mktg
B.U. Express and Parcels
Freight Logistics
Retail BankingCorporate Banking
B.U. BancoPosta
Saving certificates
Insurance
B.U. Philately
Internet Services
Poste Italiane is the largest Italian company
focused on serving citizens and enterprises
(Network Company)
() Main business units
4
The Business System of Poste Italiane Group

• Relevant areas for core processes
• products/services development (marketing)
• specific products/services fulfillment /execution
  (operations)

• Relevant area for presales , sales and post-sales
  processes

Channels
FinancialServices Factory
MailServices Factory
LogisticServices Factory
ICT Factory

• Relevant area for processes supporting company
  operations
• Administration, Finance and Controlling
• HR and Organization
• Procurement and Real Estates
• ...

• Design, Development and Management of ICT
  resources functional to the achievment of
  business objectives

Corporate Support Processes
The Business System of Poste Italiane Group is
composed of 6 main elements
5
Distribution Chain
9.00
16.00
21.00
3.00
8.00
13.00
Collection
First sorting of mail
Transportation and handling
Delivery
Second sorting of mail

• 16 Flights per day
• 320 heavy tracks
• 600.000 km driven per day

• 18 Automated centres
• 81 Non automated centres
• 164 Sorting systems

• 5.000 Delivery offices
• 42.000 Postmen
• 38.000 Vehicles

• 14.000Post Offices
• 61.000 Mail Boxes
• 104 Contact Point

Staff 72.000 people Volumes (item/year) 7 Mld
6
Agenda

• Overview
• ICT resources
• e-Banking services

7
ICT Stack - Overview
Pysical Mgmt.
Logical Mgmt.
8
TLC Network
Main features

• MPLS Backbone and access network
• 10.500 Major Post Offices in MPLS and 3.500 in
  Flat ISDN
• Networking infrastructure among Data Centers
• Web TV platform
• Content Delivery Network platform in more than
  400 sites

Regional MPLS access routers
Modello To-Be 2005

• An optical backbone connects the Data Centers
• Branches are connected via regional MPLS access

9
Data Centers
Operating Capacity
Milan
Milan
1. Storage
480 TB approx.
2. Computational capacity Mainframe
14.000 MIPS approx.
3. Computational capacity Open systems
55.000 SpecInt approx.
300 m2 approx.
900 m2 Approx.
Rome2 Pomezia
Rome (A and B sites)
900 m2 approx
1.830 m2 approx.
Site for Disaster Recovery
10
Service Control Room What Why (1/2)
What

• Service Control Room includes human resources,
  processes and information systems that ensure an
  end-to-end monitoring of business services
  supplied through ICT infrastructures.

• In large companies, the Chief Information Office
  is shifting its attention toward internal
  customers, becoming a true Service Provider
  (not only a HW/SW buyer)
• Following the definition of an ICT Service
  Management model and definition of Service
  Level Agreements (SLA) among the Chief
  Information Office and the Internal Customers
  (other Depts) Service Control Room is the place
  for SLA management and monitoring
• The Chief Information Office is required to
  demonstrate, in a quantitative way, its support
  to achieve corporate wide goals
• Service Control Room reports the availability of
  ICT resources and translates it in business
  services availability

Why
11
Service Control Room (2/2)

• Two facilities has been built in Poste Italianes
  headquarter in Rome
• Control Room, to monitor in real time (24/7
  basis) all the ICT resources and services
• Crisis Unit, to host crisis-management
  meetings, at the highest levels of the emergency
  management escalations process

CRISIS UNIT
CONTROL ROOM
12
Agenda

• Overview
• ICT resources
• e-Banking services

13
BancoPostas business model

• BancoPosta is similar to and competing with banks
  even if it is not allowed to take financial or
  credit risks.
• According to the law D.P.R. 14/3/2001 n.144,
  Poste Italiane is not allowed to directly
  underwrite a loan or other financial instruments.
  
• Poste Italiane is allowed to sell financial
  instruments issued by other banks or
  institutions (Art. 2, comma 1).

14
BancoPosta the white label model
BancoPosta Skills
Distribution Channels
Providers
Customers
Post Offices
Sales
Retail
Marketing
www.poste.it
IT
Corporate
Operations
Sales Force
Product Design
15
BPOLs reference market in Italy
On line accounts can be segmented by type of
enabled operations and provided services.
Type of Operations
Type of Services

• Accounts used for e-banking only
• Accounts used for trading online

• Pure on line accounts
• On line accesses to traditional accounts

11 market share
650 000 online accounts
BPOLs reference market
16
Bank transfers and other transactions (1/2)
Transfers and other transactions (TOT) - Market
Average
Transfers and other transactions (TOT) - BPOL
5
5,0
5
25
4,6
4
4,0
4
20
3
3,0
3
15
Number of TOT per account
Number of TTOT (mln)
Number of TOT per account
Number of TOT (mln)
2,4
2
10
2
2,0
1
1,0
1
5
0
0
0
0
2sem
1sem
2sem
1sem
2sem
1sem
2sem
1sem
2 sem
1 sem
2 sem
1 sem
03
04
04
05
05
06
03
04
04
05
05
06
Number of TOT per account
Number of TOT
Number of TOT per account
Number of TOT
Market Average
BPOL customers

• Mean value 2,4 transfers and other transactions
  per account.
• Increase in transaction number is due to a larger
  customer base, not to an increase in the average
  number of transactions per customer.

• Mean value 4,6 transfers and other transactions
  per account.
• Increase in transaction number is due to a larger
  customer base and to an increase in the average
  number of transactions per customer.

17
Bank transfers and other transactions (2/2)
Number of transfers and other transactions
TOT. MARKET
18,8
BancoPosta
28,7
21,4 MIO
Capitalia
Intesa SanPaolo
Unicredit
11,8
TOT. BPOL
MPS
3,3
PopMilano
3,5
4 MIO
BNL
5,1
20,6
Others
8,2
BPOL is one of the leaders for number of
transfers and other online transactions
1st semester 2006 data Combined value of
Intesa and SanPaolo
18
Usage of the existing payment platform
The existing platform enables different services,
included a new micro-payment service via mobile
phone.
eBanking services
Digital Communications

• Online registered mail

• ...

• Online letter

• Online telegrams

BancoPosta Payment Platform
eCommerce
Payments via mobile phone
Under development
19
The MVNO opportunity for Poste Italiane

• A Mobile Virtual Network Operator (MVNO) is a
  mobile telecommunication operator which does not
  own the network infrastructure and the operating
  license. Its operations are based on a third
  party provider existing or only announced MVNOs
  are more than 200 worldwide.
• In Italy, the regulatory framework did not yet
  allowed the launch of MVNO while, in 2006, the
  AGCOM (the Communication Authority) called for
  the definition of commercial agreements among
  network owners and interested actors, effectively
  enabling the launch MVNO during 2007.

MARKET OPPORTUNITY

• Poste Italiane can leverage on some competitive
  advantages typical of most successful MVNOs e.g.
  leverage on its sales channels and customer base
  using a cross-selling approach

COMPETITIVE STRATEGY
COMPETITIVE ADVANTAGES
5
4
1
2
3
Innovation capabilities
Know-How and ICT assets
Consolidated Customer base
Distribution channel
Brand

• Poste Italiane wants to became an Enhanced
  Service Provider, managing independently
• the relationship with final clients
• marketing
• value added services

BUSINESS MODEL
With the MVNO, we take a SIM card and
debit card and merge them together M.Sarmi (CEO)