Bank ≠ Innovation by Johan Löfmark at Bank 2.0

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Presentation held at Affärsvärlden's event Bank 2.0 2011.

Published in: Economy & Finance, Business

Bank ≠ Innovation by Johan Löfmark at Bank 2.0

  1. 1. Bank ≠ Innovation© 2011 Tieto Corporation AFFÄRSVÄRLDEN BANK 2.0 CONFERENCE STOCKHOLM 16 NOVEMBER 2011 JOHAN LÖFMARK | TIETO CORPORATION johan.lofmark@tieto.com
  2. 2. Hello, i’m Johan. Sailing & Skiing India Creative Destruction Transparent Government Social Media & Enterprise 2.0The New Digital World Perpetual Beta Archipelago Twitter Transitive trust Innovation Workshops Digital Customership Multi-channel OpenID Digital Natives Internet of Things FacebookConnected World The Long Tail Amazon.com & Kindle New Way of Work Near Field Communication Next Step in Banking Uplifting Service Experiences iPad Gary Hamel © 2011 Tieto Corporation
  3. 3. Sometimes I’m right…© 2011 Tieto Corporation Computer Sweden 2010-02-12
  4. 4. Sometimes I’m right… • Nordic Card Markets Conference, 19-20 January 2011, Stockholm, Sweden • Baltic Sea Card Conference, 12-13 April 2010, Riga, Latvia • CAC Conference, 7-8 June 2011, Reykjavik, Iceland •…© 2011 Tieto Corporation Computer Sweden 2010-02-12 …but, often I’m wrong
  5. 5. 18,000+ talents in ≈25 countries Our biggest Our 2nd biggest Experts in business area: business area: Digital Business© 2011 Tieto Corporation Telecom R&D Financial Transformations Services
  6. 6. What both Johan and Tieto are passionate about: The Information Society…especially the impact on financial services© 2011 Tieto Corporation
  7. 7. All this started in the 90s… © 2011 Tieto Corporation Source: Finnish Bankers Association
  8. 8. ...we have digitalized money... PS: PIGS© 2011 Tieto Corporation World Payments Report (2010)
  9. 9. …and we have digitalized the customer relation; Sweden is today the country in Europe with the least people visiting the bank branch.© 2011 Tieto Corporation
  10. 10. INFORMATION SOCIAL Uplifting the CUSTOMER EXPERIENCE MOBILE CLOUD© 2011 Tieto Corporation
  11. 11. Probably most important: How to Financial Services as accelerate changes? a ServiceAgenda Banking in the hands of customers When was the last time you smiled when interacting with a bank? The Social Bank Use the Data © 2011 Tieto Corporation
  12. 12. The Data Driven Bank What would a Google Bank do different?© 2011 Tieto Corporation
  13. 13. “We at this Big4 bank track certain type of transactions on our customers accounts. Garbage bills is an example of a trigger we use as we then learn that the customer have a house” …but wait a moment: isn´t that© 2011 Tieto Corporation to late to assist with a loan?
  14. 14. Case Study: American Express Using statistics and consumption patterns = Frauds -20% David Cearley; Top10 trends presentation at Gartner Symposium Barcelona Nov 2011© 2011 Tieto Corporation
  15. 15. Value in utilizing the data mint.com © 2011 Tieto Corporation
  16. 16. The Social Bank What would a Facebook Bank do different?© 2011 Tieto Corporation
  17. 17. Service innovation by data +social media behaviours Merchant Amount Would you recomend it? IKEA 23 Euro © 2011 Tieto Corporation
  18. 18. Service innovation by data +social media behaviours Merchant Amount Would you recomend it? IKEA 23 Euro © 2011 Tieto Corporation
  19. 19. We are what we buy?Shopping is in it’s essence a social activity blippy.com swipely.com © 2011 Tieto Corporation
  20. 20. Guess what: Choosing bank is a social activity ◄ My friend Charlotte’s facebook feed© 2011 Tieto Corporation
  21. 21. Guess what: Choosing bank is a social activity ◄ My friend Charlotte’s facebook feed© 2011 Tieto Corporation …and the decision might be based solely on your mobile app experience
  22. 22. Banking in the hands of customers What shall we do with all account numbers when they are being replaced by phonenumbers© 2011 Tieto Corporation
  23. 23. The mobile channel is gettingmuch attention today © 2011 Tieto Corporation
  24. 24. Going from marketing apps toservice innovations SquareUp.com iZettle.com © 2011 Tieto Corporation
  25. 25. The most exciting thing: Mobiles are always close to the customer situation & transaction. That’s new to banks (we don’t make our financial decisions in the sofa on the 25th but rather in our daily life; on a apartment hunt, in a bar…banks can finally be close to these situations© 2011 Tieto Corporation
  26. 26. Online banking is today mainly thechannel for routine transactions © 2011 Tieto Corporation Source: Datamonitor FSCI survey June 2010
  27. 27. Prediction #44: Mobile banking will replace online banking as the preferred channel for routine transactions© 2011 Tieto Corporation
  28. 28. Why? The mobile channel hasthree unique capabilities Simplicity Immediacy Context Interactions that Information that Information that is customers do matters to customers relevant to the frequently and require immediately customer´s current few steps to complete location PS: ask my collegues Ville Soitu or Sami Uski about connecting your bank to © 2011 Tieto Corporation iOS/Android native messaging platform
  29. 29. Don´t forget that the corebusiness of banking is TRUST ...so it is vital for us to start to manage the mobile channel in the same safe and stable way as our core IT © 2011 Tieto Corporation
  30. 30. What about the online version?-> Will emerge as the primarysales channel • Online banking will emerge as a predominant sales channel. • Online banks will have to migrate towards Amazon type of customer experience, including: • Tailored content to individual users • Allow personalized configuration • Use data to match customers with the right products • Track user behaviour © 2011 Tieto Corporation
  31. 31. Customer Situations ? ? ? ? Customer Profile CRM Self Online data personalization behaviours Match profile ! ! ! ! ! with ! ! ! ! ! ! offering !! ! !© 2011 Tieto Corporation ! ! Products and offerings
  32. 32. When was the last time you smiled when interacting with a bank? What would a Apple Bank do different?© 2011 Tieto Corporation
  33. 33. Great banking experience?≈25% ofScandinaviansare dissatisfiedwith their bankSIFO © 2011 Tieto Corporation
  34. 34. Entering a paradigm shift in financial services digitalization From efficient …to front end transactions… innovation© 2011 Tieto Corporation
  35. 35. Banks are not good at front office innovation (anymore)© 2011 Tieto Corporation Johan’s bank; almost three years ago (look exactly the same today)
  36. 36. Banks are not good at front office innovation (anymore)© 2011 Tieto Corporation Johan’s bank; almost three years ago (look exactly the same today)
  37. 37. The power of removing frictionfor the user Sales volume following eBay purchase and integration of PayPal (UK volumes) © 2011 Tieto Corporation
  38. 38. Financial services as a Service Why do we still buy servers and applications when the bank is being delivered as a service from the Cloud?© 2011 Tieto Corporation
  39. 39. Financial Services CIO priorities Gartner Symposium Barcelona Nov2011 (based on Gartner annual CIO Survey)© 2011 Tieto Corporation
  40. 40. It has neverbeen this easyto start a bank© 2011 Tieto Corporation
  41. 41. Financial services as a service?© 2011 Tieto Corporation
  42. 42. Probably the most important question How to accelerate change and take the Visions to Execution© 2011 Tieto Corporation
  43. 43. How to accelerate change? FIGLO (et al.) SmartEngage iSuggest© 2011 Tieto Corporation
  44. 44. Great subjects for coffee with me and my collegues today: Our Mobile SaaS solutions Banking Digital Partner in driving Front Office innovation© 2011 Tieto Corporation
  45. 45. Thank you & welcome to the world of Tieto© 2011 Tieto Corporation

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