Presentation by Johan Löfmark at the Nordic card markets conference in Stockholm, 19 January, 2011.

1. Nordic Card Markets conference | 19 th of January 2011 Payment Cards are no Longer a Piece of Plastic; Welcome to the New Digital Economy

3. plastic = “legacy interface for accessing the payment enabler”

4. Agenda Johan We are in the epicenter of changes Front Office innovation by whom? Nordics leading the way Welcome to the world of Tieto

5. Our biggest business area: Telecom R&D Our 2nd biggest business area: Financial Services Experts in Digital Business Transformations ≈ 4 00 institutions are using our Card Suite

6. Hello, I’m Johan. Twitter OpenID The Long Tail Sailing & Skiing Gary Hamel India Perpetual Beta Transitive t rust Transparent Government Archipelago Creative Destruction Facebook Innovation Workshops Digital Natives Near Field Communication Digital Customership New Way of Work Amazon.com & Kindle Next Step in Banking The New Digital World Multi-channel Social Media & Enterprise 2.0 Uplifting Service Experiences iPad Sheraton

7. NFC Payment System

8. What both Johan and Tieto are passionate about: The Information Society…especially the impact on financial services

9. “ The Nordic Payments Market; Leading the Way ” Theme of the Nordic Card Markets Conference 2011

10. We in the Nordics love Non-Cash World Payments Report (2010)

11. … all this started in the 90s Source: Finnish Bankers Association

12. … banks leading the revolution

13. From efficient transactions… … to front end innovation But, competition have moved:

14. 1983 2006 2010

15. … Sweden is today the country in Europe where the least people visit a bank branch Forrester (2010) Customer behaviour is ready:

16. … so when is the Nordics moving from a piece of plastic as “legacy interface for accessing the payment enabler”?

17. A lot of focus on NFC.

18. … but why do we constantly assume it is the established actors (in developed markets) driving the future of payments?

19. … how come we missed the payments friction in eCommerce Sales volume following eBay purchase and integration of PayPal (UK volumes)

20. … how come we missed the payments friction in eCommerce

21. … how come we are missing the social networking trend? blippy.com swipely.com

22. … why wasn’t Square established by someone in this room? SquareUp.com

23. Kiva… Kiva.org

24. … and why are we not utilizing the data? mint.com

25. Lars; my personal banker. ” The main reason we have a bank is to get rid of the transaction costs for card payments.” Jörgen Wennberg CEO, Ica Banken

26. New actors entering the Payments ecosystem e.g. speakers at this conference: IKEA, Nokia and TeliaSonera Next year: Google, Paypal, Apple? Phone book: Matti Meikäläinen Maria Maija Mainio Jussi Juonio Paul Sminth Select Cancel SMS E-mail Money MMS

27. Johan prediction #23: during 2011 Apple will transform your iTunes account to a NFC based payment ecosystem… iTunes.com

28. Financial services as a service?

29. Banks core business excellent performed; e.g. transactions, risk management and trust… … but what about front office innovation?

30. Banks are not good at front office innovation (anymore)

31. Maybe we should focus on what we do the best? Simplified Payments Value Chain BACK OFFICE INDUSTRIALIZATION More efficiency Optimized processes Seek volumes Self service Increased STP FRONT END INNOVATION Customer focus Channel development Partnerships Time-to-market Flexibility

32. Here is a key message today: The future of financial services and payments will most definitely be bank enabled , but not necessarily bank driven . We need to allow for innovative external services, support the good ones and copy the best.

33. What's your role in the emerging new payments ecosystem? Decision point: will your bank be a processing house or an innovation powerhouse. In 2011 it´s time to decide.

34. Other great coffee subjects: We have some exciting demos at the Mobile World Congress next month Our Card Suite Our experience in NFC Front Office Innovation Partner in driving innovation