For a large international operation such as RBS' wholesale banking unit, drawing a mobile roadmap means scaling the knowledge curve posed by fast-developing new devices and technology to find the best match between innovation and client demand.
But for Wilco Dado, the most important work is identifying how new legal standards can break technology barriers by removing political hurdles.
The 20-year veteran of transaction banking, who was appointed RBS' head of global payments and commercial cards in July 2010, is charged with tying opportunities in payments and other corporate transactions to new product developments. In an interview with Bank Technology News, Dado discussed fitting mobile technology into that mix, and how regulatory developments such as SEPA [the Single Euro Payments Area — an initiative designed to reduce the cost of cross-border transaction processing, replacing all national payments by the end of this year] can make transaction execution easier and mobile payments more attractive to cross-border corporate clients.
BTN: What substantial developments are on your plate right now?
Dado: First is the impact of regulation and SEPA. Secondly, we have the development of mobile payments and new entrants into the market, such as internet providers. And we also have the change of payment mixes. While the UK [Payment Council] announced they would withdraw the target closing day for [paper-based] check processing, people are still using cash and paper much less and are using cards much more.
BTN: How does SEPA impact the development of your mobile strategy?
Dado: SEPA is the major regulatory change at the moment in Europe. Imagine if all American states at one time had different currencies, then moved to one. You'd have to move to make sure all of the conditions and pricing regulations are the same in all of the various states, which is what's happening in Europe via SEPA. You want to be able to use one account in France to do direct debit in Germany and Italy.
BTN: How does that affect mobile payments?
Dado: Under SEPA, the information that a merchant receives in a mobile payment will be much richer [via a standardized XML format]; you can include a lot more information on transactions and clients into payment transactions, which creates efficiencies. For example, a corporate can ask one subsidiary of a company to execute payments via mobile on behalf of all other subsidiaries, regardless of location. Current formats still differ from country to country, and the information that you can put into a payment is limited.
BTN: How are you approaching mobile payments from a technology development standpoint?
Dado: We've developed apps for Android, BlackBerry and the iPhone and iPad operating systems. We believe smart phones and tablets can be used as a venue for information on transactions, such a corporate client who wants to be informed as to what's happened with a payment or what's going on with a transaction. There are also retail clients who want to use mobile payments through NFC. Another element is using mobile payments on the issuing side of the transaction [e.g. invoice presentment]. We're actively pursuing all three areas. For example, in the U.S., [RBS subsidiary] Citizens has launched a mobile [presentment] app in a pilot program.
BTN: You mentioned entrants of web startups in payments and cash management as competitors. As a bank, where do you see opportunities to use mobile to get ahead?
Dado: Devices like iPads and smartphones can help retail clients access added information on their finances in a more convenient venue. Also, we can cut down on the price of executing payments by using the mobile channel [to reduce paper processing]. Also, if you give consumers information on merchants and the various loyalty programs and marketing information, you can drive [web or onsite] consumer traffic to merchants.
BTN: How do you target specific clients?
Dado: We have a number of client advisory boards around the world, in locations such as Chicago, Milan and Kuala Lampur. We present various pilots at the locations and ask what services they want…such as payments authorization. In Kuala Lumpur, for example, we were told that we don't want to be talking to CFOs and group treasurers, since they access centralized ERP systems. They see the devices as useful for staff that are already mobile, such as salespeople.
