In The Boardroom With...
SecurityStockWatch.com: Thank you for joining us today,
Keith. Please give us an overview of your background.
Keith Goldstein: I joined what is now ABnote in 1998 and over
the years have held many senior level positions in finance, operations
and business development. ABnote, the trade name for American Banknote,
is one of the oldest security printers in the world, having been founded
in 1795 by the great American Patriot, Paul Revere. Today, we provide
Passports (electronic and machine readable) and national identity cards
to numerous sovereign countries, drivers' licenses to over 25 US states,
and we are the world's leading provider of plastic transaction cards such
as secure national ID, credit, debit and gift cards as well as end to
end enrollment, data capture and issuance solutions to personalize documents
As the CEO of the US operations, I am responsible for establishing strategies
that best position us for growth and to expand the product offering to match
our customer's needs. For example, I am leading the unit's move into EMV
"smart" payment cards. This is a particularly exciting time for those of
us in the US payments industry, because both Visa and MasterCard have announced
roadmaps for US EMV migration. This coupled with other emerging technologies
such as NFC will provide greater security, better world wide interoperability
and enhanced consumer convenience. We believe ABnote is well positioned
with its capabilities and technology to meet these new challenges.
SecurityStockWatch.com: With a corporate history that
dates back over 200 years, ABnote's track record is truly impressive.
Please give us an overview of the secure identification and payment solutions
that ABnote brings to market.
Keith Goldstein: The only way a 200 year old company
can be successful over such a long period of time is that it has the ability
to read the influence of technological change and respond to customer
needs in a timeframe that meets their business aspirations. Continuous
innovation is obviously important here, and this along with a practice
to be driven to find the balance between innovative leadership and the
customers' ability to adopt emerging technology is a major component of
our longevity. A very clear example of this practice can be seen in ABnote's
approach to NFC. We believe that NFC and Payment cards are companion technologies.
Through our leadership position in providing tokens that enable payment,
transit, identity and other applications we have introduced a migration
approach to NFC that enables any issuer to introduce mobile technology
without the complication of developing multilateral agreements. This approach
allows issuers to build future responses to emerging technologies today
and in a manner where the infrastructure that supports cards as token
of payment or identification can be used to test customer response to
SecurityStockWatch.com: We read with great interest your
recent press release regarding ABnote's new division dedicated to pioneering
Mobile NFC technology. Care to elaborate?
Yes, ABnote has in fact created a dedicated Mobile
Technology Development division. We have been working globally with issuing
partners and large development organizations in actively building NFC
technology solutions for over 3 years; we have seen significant growth
in mobile payment applications in the last 9 months; and so we created
the Mobile NFC division to meet the increased demand from the market."
The main focus of the team is to progress the development of secure mobile
applications that work in conjunction with our Trusted Service Manager
platform (TSM). We currently have 3 certified TSM sites operational, and
our services include mobile developments with a variety of handset platforms,
EPINS, and distributed instant issuance across finance, government and
corporate industry sectors.
SecurityStockWatch.com: Any other "new" emerging payment
solutions on the horizon you would like to talk about? How does EMV (Europay,
MasterCard and VISA) and "instant issuance" fit into your mix?
Keith Goldstein: ABnote's Smart Jump Personalization Center®
offers issuers a cost-effective migration that will maximize the benefits
of EMV. ABnote has developed a turnkey solution that can be customized
to suit the individual banks and personalization centers requirements.
Our proven "Smart Jump" offer, based on the experience and expertise
of our staff and consultants, ABnote can streamline any EMV migration
project, shortening the migration timescales and reducing costs.
"Smart Jump Personalization Center® " includes all the
necessary tools for a Personalization center to issue EMV cards in the
safest and quickest way. "Smart Jump Issuer®" is a whole
package which enables banks to migrate easily from magnetic stripe to
smart cards that suits each customer needs and insures the banker to issue
the certificated card whatever his knowledge is in the EMV area.
The ABnote approach to instant issuance illustrates thinking that is
both customer-inspired and forward-thinking. Today's customer has a psychology
that demands immediate response, instant gratification and a range of
choices. ABnote therefore sees the need for remote personalization of
credit and debit cards to be one example of issuers responding to this
customer want. We similarly see the remote personalization of secure elements
that exist in mobile phones, NFC stickers, microSD devices and similar
to be other examples of form factors that need to be considered in responding
to the secure remote issuance challenge. As such, the ABnote TSM service
has been designed to deal with these needs as one and as a result our
customers are able to issue cards and companion mobile payment tokens
"In Branch" using the same process. Our customers are excited
by this solution, which means that they can now deal with multiple customer
demographics simply by augmenting existing centralized card personalization
processes, rather than being required to invest in multiple systems, training
SecurityStockWatch.com: Is there a success story or "win"
you would like to talk about?
Keith Goldstein:With operations in the US, Canada, Europe,
Australa and South Africa, we have many success stories that I would love
to share. Given our topic today, the most relevant achievement may be
that we have successfully implemented literally hundreds of issuers' mag
stripe to EMV migrations, have developed an NFC solution with the first
MasterCard NFC launch in Australasia, are looking forward to the same
with Visa, and are one of the very few companies in the world to already
have gained multiple TSM accreditations.
Overall, as the only major global player based in the United States, I
think that we are most proud of our unique ability to bring new payment
technologies to the US, leveraging our global technology experiences and
knowledgebase in a way that is meaningful and relevant for the market.
A great example of this would be our recent TSM certification. Having
Service Manager (TSM) Certification for Australia, New Zealand and
France, it is fairly simple for us to replicate these processes and services
at our flagship Boston plant, and to do so with 217 years of local market
knowledge to tailor the solution for the unique American market. TSM certification
allows ABnote to provide services such as secure management and over-the-air
application download and personalization to NFC-enabled mobile phones.
The TSM delivers interoperability between mobile operators and financial
issuers over a safe platform to securely provision payment and offer applications
across a network on a secure element that is embedded within a mobile
handset, Micro SD, iPhone sleeve or Sim Card (UICC chip).
SecurityStockWatch.com: We understand that ABnote is
a major participant at
CARTES North America, March 5-7 2012, at the Mirage
Hotel in Las Vegas. Can you give us a sneak peek at what the industry
will see from ABnote at this years' upcoming show.
Keith Goldstein: CARTES is just around the corner and,
like every year, it will bring innovation, discussion, presentations and
analysis of trends. But this year, NFC will be on every lip. With NFC,
comes the usual discussion on how to bind two worlds (cards services like
payment and transit, and the Mobile world). Nobody will have the same
answer, of course, but everyone will definitely tell you that you need
a TSM. With ABnote's TSM, banks and service providers have a cost-effective,
easy to use, standardized and secure method to transfer and install payment
account information, on demand, in real time, onto NFC enabled mobile
phones. Once provisioned, consumers can immediately use their mobile phone
at merchant locations where the applicable scheme is accepted..
SecurityStockWatch.com: Thanks again for joining us today,