Morse (“Morse” or the “Group”), the consulting, technology and support company, announces that The Royal Bank of Scotland Group ("RBSG") has signed an agreement to offer its UK retail banking customers the next generation of mobile phone banking through the MONILINK network, the secure mobile banking network developed through the joint venture with LINK Interchange Network (“LINK”), (operator of LINK, the world's busiest shared ATM network).
The agreement with RBSG will mean that the MONILINK service will be available to the customers of all of RBSG's UK retail banking brands.
UK banks already offering the MONILINK service to their customers are HSBC and first direct. Other recent additions to the network include Alliance & Leicester who have recently begun to market the service to their customers. The launch of the service with RBSG will bring the number of consumers able to access the MONILINK service in the UK to over 30 million, some 35% of LINK's card base of 85 million. In addition, discussions are in progress with the other major participants in the UK banking sector and further announcements can be expected.
Also announced today is an update on developments within Monitise Group, the highlights of which are as follows:
- New agreement with RBSG makes MONILINK™ available to customers of all its UK retail banking brands
- Agreement also recently signed with Alliance & Leicester
- Over 30 million UK consumers now have access to MONILINK
- MONILINK is now developing more aggressive marketing plans with its banking and mobile network partners to accelerate consumer adoption in the UK
- T-Systems has acquired the rights to Monitise Limited's exclusive preferred partner agreement in Germany for an initial fee of €130,000 (approximately 10% of the annual license fee)
- Confirmation by independent advisers that the value of Monitise Group is significantly in excess of the capital committed to date to build the business
- Investment in Monitise Group in the six months ended 31 December 2006 of £2.9 million
- Operating expenditure in Monitise Group now running at approximately £5 million in total for the six months to 30 June 2007 which will be partially offset by revenue generated
The Board of Morse confirms that core Morse, the Group's Advisory & Execution professional services firm, continues to trade in line with expectations.
Duncan McIntyre, chief executivive, Morse, commented: "We are very pleased with Monitise Group's progress. MONILINK in the UK is now well placed to become the industry platform in mobile banking and this platform is enabling us to also gain a market leading position in overseas territories.
The recent confirmation by independent advisers of the value being created together with the opportunity to replicate our UK success in overseas markets has given management the confidence to take the business to its next stage of development. This will require additional investment - an investment which we believe will allow Monitise to emerge as a key player in the rapidly developing mobile banking market.
Morse has two separate businesses which have distinct characteristics. We are aware of the challenges this produces for a small quoted company and remain focused on ensuring both businesses operate in an environment which maximises their individual chances of fulfilling their potential."