The mobile near field communication (NFC) ecosystem already recognises the need for multiple trusted service managers (TSM) to communicate with one another. In the mobile NFC ecosystem there are both Root-TSMs – responsible for managing access and allocation of space and privileges on secure elements (SE) – and service provider (SP) TSMs which provide application content to load on to the SE. 1. Management of relationships and customer engagement Banks need to be in control of their relationships with partners and consumers in order to keep ahead of their competitors. Banks therefore need to benefit from the data which consumers feedback. This level of information can assist product development in bringing new services to market which truly meet the needs of their existing and prospective customers. 2. Flexibility, scalability and time to market Being in full control of the system allows banks to adjust aspects of the offering immediately and efficiently, rather than having to liaise with their third party TSM provider and negotiate a renewed service level agreement. The ability to do this significantly reduces product time to market, allowing banks to react to the market and keep both partners and customers happy. 3. Simple IT integration and ownership Where a bank already has, or plans to have, both a card business and mobile/internet banking services it doesn’t necessarily make sense to outsource the bridging activities for mobile NFC payments. Acting as its own SP TSM allows banks to simply integrate the new mobile technology with their own legacy systems and manage everything as one entity, streamlining processes and potentially reducing the resources required. 4. Security Security is at the core of any banking activity – the need to protect data in secure locations is fundamental. Replicating card/account information to be held and processed outside this remit would need careful and assured management, as it involves additional costs and certification. 5. Value added services By managing their own mobile payment services, banks have the opportunity to quickly and easily expand and enrich their mobile offering. This is especially relevant for supporting affinity, cobranding and other relationships. For example, providing mobile loyalty and reward schemes may be important to both the partner relationship and the bank customer’s satisfaction and retention. Control Ultimately, a bank becoming its own TSM is about control. Bell ID’s TSM software solution enables banks to integrate TSM/OTA and EMV services, as well as manage multiple value added services to meet customer requirements. David Worthington Principle Consultant Payments & Chip Technology d.worthington@bellid.com Bell Identification BV With over 20 years of expertise, Bell ID is considered the world’s leading provider of lifecycle management solutions for tokens (e.g. smart cards, mobile NFC phones) deployed in single and multi-application

1. 5 Reasons Why Banks
Should Be Their Own
Trusted Service Manager

3. 5 reasons why banks should be their own
trusted service manager
The mobile near field communication (NFC) ecosystem
already recognises the need for multiple trusted service
managers (TSM) to communicate with one another. In
the mobile NFC ecosystem there are both Root-TSMs –
responsible for managing access and allocation of space and
privileges on secure elements (SE) – and service provider (SP)
TSMs which provide application content to load on to the SE.
Here are five key reasons why banks are fundamental to
the mobile payments and services landscape, and why they
should consider taking the role of being their own SP TSM.

4. 1. Management of relationships and
customer engagement
Banks need to be in control of their relationships with
partners and consumers in order to keep ahead of
their competitors. Banks therefore need to benefit
from the data which consumers feedback. This level of
information can assist product development in bringing
new services to market which truly meet the needs of
their existing and prospective customers. When a bank
outsources its TSM services it can be confined to the
role of payments processor, with little or no control over
third party mobile product development and timescales.

5. 2. Flexibility, scalability and time to
market
Being in full control of the system allows banks to adjust
aspects of the offering immediately and efficiently,
rather than having to liaise with their third party
TSM provider and negotiate a renewed service level
agreement. The ability to do this significantly reduces
product time to market, allowing banks to react to the
market and keep both partners and customers happy.

6. 3. Simple IT integration and ownership
Where a bank already has, or plans to have, both a card
business and mobile/internet banking services it doesn’t
necessarily make sense to outsource the bridging
activities for mobile NFC payments. Acting as its own SP
TSM allows banks to simply integrate the new mobile
technology with their own legacy systems and manage
everything as one entity, streamlining processes and
potentially reducing the resources required.

7. 4. Security
Security is at the core of any banking activity – the
need to protect data in secure locations is fundamental.
Replicating card/account information to be held and
processed outside this remit would need careful and
assured management, as it involves additional costs
and certification.

8. 5. Value added services
By managing their own mobile payment services, banks
have the opportunity to quickly and easily expand
and enrich their mobile offering. This is especially
relevant for supporting affinity, cobranding and other
relationships. For example, providing mobile loyalty and
reward schemes may be important to both the partner
relationship and the bank customer’s satisfaction and
retention. This can also off-set the cost of infrastructure
implementation and offer an additional source of
revenue to the programme.

9. Control
Ultimately, a bank becoming its own TSM is about
control. Bell ID’s TSM software solution enables
banks to integrate TSM/OTA and EMV services, as well
as manage multiple value added services to meet
customer requirements rather than fitting customers
into a predefined offering.

10. David Worthington
Principle Consultant Payments
& Chip Technology
d.worthington@bellid.com
With over 20 years of expertise, Bell ID is considered the world’s leading provider of
lifecycle management solutions for tokens (e.g. smart cards, mobile NFC phones)
deployed in single and multi-application programmes.
www.bellid.com