Mobile payments will only be able to disrupt if user is king.

Hello; I’m Johan M2M Tablets Internet of Things Creative Destruction Dynamic Pricing Sailing & Skiing Love to challenge Connected World Predictive Analytics our customer to Enterprise Application Stores Cashless society Transparent Government explore disruptive Networked economy Perpetual Beta Augmented Reality Activity Streams digital opportunities Image/Speech/Gesture recognition Group Buying @johalof Transitive trust Archipelago Big Data and Analytics eGovernment There’s an app for it Smart products Digital Customership Innovation Workshops Realtime economy Social Media Gamification iPad OpenID Digital Natives Facebook Internet of Things The Long Tail eHealth Mobile & Contactless payments Amazon.com & Kindle India Location-aware applications 2003/98/EC Cloud Enterprise 2.0 Near Field Communication Realtime society New Way of Work Next Step in Banking Uplifting Service Experiences App economy© 2011 Tieto Corporation AMI Connected and social TV Gary Hamel Dynamic Pricing Digital Natives Idea Management & Open Innovation

One of my favourite innovation areas for digital technologies is financial services Personnel Branches 60 000 6 000 50 000 5 000 Personnel 40 000 4 000 30 000 3 000 Branches 20 000 2 000© 2012 Tieto Corporation 10 000 1 000 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 Source: Finnish Bankers Association

Our secret gameplan for today: Introduce a new conversation subject e-Banking Supply Cards Chain and Customer Contact FX Centre Payments Ticketing Front End Management Financial eWallet Business messaging mBanking Consulting Digital Remote Front Transaction Cash Payments Office Mobilizing Unified Banking Management Desk interactions Proximity Payments Core Banking eInvoicing Enterprise Mobilizing Enterprise Project & mobility Content Program things Enterprise Management Manage- Architecture ment Asset and Life Custom ERP Insurance Wealth Mobilizing Internet Application Test & Management Develop- workforce of things ment Consulting & Validation Securities Services trading System Mobile sales SAP tools, time Integration Information Management reporting Fund et al. Enterprise Capitals Management Architecture Security Markets Application Enterprise Debt Business Productivity© 2011 Tieto Corporation Collection Management Intelligence CRM Solutions Managed Debt Infra- services Collection & Mortage structure Services Mortage Unified Communi- Instalment cations

Continued importanceis easy to predict Proportion of global online consumers who have conducted each activity online in the last six months Check balance 84% View statement 75% View recent transactions 74% Pay bills 61% Transfer money between accounts 55% Transfer money to other people 48% Set up/ amend standing orders 17% Set up/ amend direct debits 16% Change personal details 16% Order card, cheque book etc 14% Set up email/SMS alerts 12% Used online chat facilites 6% © 2012Tieto Corporation Source: Datamonitor FSCI survey June 2010

But please remember that to succeed in themobile channel we need to build the trust Sales volume following eBay purchase …your apps are no and integration of PayPal (UK volumes) longer a marketing initative © 2012Tieto Corporation

The most frequent frase in Swedish stores: ”Would you like to pay cash or with card?” One of my favourite quotes: “these are legacy interfaces for© 2011 Tieto Corporation accessing the payment enabler” Ville Sointu; Tieto Boston USA office

Great starting point for innovation: the Customer relation already digitalized and we love our mobiles Sweden is today the country in Europe with the least people visiting the bank branch.© 2012 Tieto Corporation

But (as always) we tend to underestimate time to market© 2012 Tieto Corporation • Nordic Card Markets Conference, 19-20 January 2011, Stockholm, Sweden • Baltic Sea Card Conference, 12-13 April 2011, Riga, Latvia • CAC Conference, 7-8 June 2011, Reykjavik, Iceland

The key actors (both retail and banks) are aiming on lowest cost per transaction which is excellent served by current card infrastructure. Dangerous assumption: payment war is on operational excellence and not customer experience. This is where plastics are most sensitive for© 2012 Tieto Corporation disruptive new services.

Banks perform the core business excellent; e.g. transactions (STP), risk management and trust… …but they are not a role model of designing customer experiences FRONT END BACK OFFICE INNOVATION INDUSTRIALIZATION Customer focus More efficiency Channel development Optimized processes Partnerships Seek volumes Time-to-market Self service Flexibility Increased STP Marketing sales and support Initiation Processing Proposition Contract Client reporting Payment Operating Clearing and© 2012 Tieto Corporation Development Management and support instructions Processing Settlement Simplified Payments Value Chain Simpified Payment Value Chain

Recommended Actions Tomorrow • Try out the new service innovations; register an account with iZettle, Bart, Swish, WyWallet (etc) Next 30 days • Run your apps as safe and secure as your core banking services. Mobile is no longer a marketing initative. After summer • Decide if you want to be a processing© 2012 Tieto Corporation house or an innovation powerhouse…

Mobile payments will only be able to disrupt if user is king.

by Tieto Corporation on Jun 01, 2012

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Mobile payments will only be able to disrupt if user is king. Presentation Transcript