IBS Journal December 2015
Five cards into one, Touch Bank and Tieto launch new Cards in Card
Touch Bank and Tieto have developed a new Cards in Card service to link credit or debit cards to one single card. The digital-only bank says its custom-
ers, who are holders of up to five credit or debit cards issued by different Russian banks, can link their cards to one Touch Bank card using their online user account at Touch Bank. Andrei Kozliar, Touch Bank’s CEO, says: ‘Launching a service which is completely unique in the market and has never been offered before is always exciting. Touch Bank’s Cards in Card is a result of a thorough analysis of cardholders’ needs and expecta- tions and the product of successful collabo- ration with Tieto, a leading European provid- er of software for the banking industry.’ Bank customers can set transaction
management rules – specifying the cards to which purchases in specific categories are to be charged. As a result, the bank says a customer can make any purchases from retailers, with a purchase amount charged to the specific card they have pre-set. Any reward points or discounts earned under
Andrei Kozliar, Touch Bank
the card-based loyalty programmes will be added to that card in the ‘regular fashion’. Touch Bank says there is no need to
transfer funds between cards when using the service. All funds stay in the accounts of the respective linked cards. If funds ‘abrupt- ly’ run out on the card to which a transac- tion is being re-routed, the transaction is automatically re-routed online to a back- up card specified by the customer and the purchase amount is charged to this card. Any of the linked cards, including Touch Bank’s card, can serve as a back-up card. The Cards in Card relies on Tieto’s tech- nology solutions, and the bank says the service is ‘secure’. Any transaction with a Touch Bank card requires confirmation by entering a PIN.
Origins Kozliar says the origins of the service lie in Silicon Valley. ‘The efforts by experts based in Sili-
con Valley to develop a smart plastic card that would manage a customer’s accounts with multiple banks culminated in sever- al start-up launches a couple of years ago. These projects definitely represent a value to the banking market and they caught our attention.
24 © IBS Intelligence 2015
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‘The technology enabling payments with maximum benefits for a smart card holder was invented by those start-ups based on a small reader that clones data from cards of other issuing banks. This pro- cess and the further use of such device for payments drives a significant change in the customer experience of card usage. There- fore, we decided to move further and set ourselves a goal of keeping the all-familiar customer experience of using a payment card. This is how we came up with Touch Bank Cards in Card solution.’
From Russia with live Touch Bank, founded by OTP Bank, opened its virtual doors for business earlier this year. The Dutch software company Back- base underpins its front-end operations. Its core banking system is supplied by a local vendor, Inversia. The new bank targets ‘young pro-
fessionals in Russia’ and has ambitions to expand internationally. Financial services provided by
Touch Bank comprise deposits/savings (in the local currency, Euros, US dollars and pounds sterling) and loans for retail customers.
Antony Peyton
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