Johan Löfmark's presentation at Mobey Forum in Helsinki 17 June, 2010.

1. The natural payment monopoly for banks is over MobeyForum; 17 June 2010 ietoCorporation

2. Our biggest business area: Telecom R&D Our 2nd biggest business area: Financial Services Experts in Digital Business Transformations

3. I work between 9-5 with digital services for my customers customers (Digital Customership) @johalof OpenID The Long Tail Sailing & Skiing Gary Hamel & John Hagel India Perpetual Beta Transitive t rust Transparent Government Archipelago Creative Destruction Facebook Innovation Workshops Digital Natives Near Field Communication Digital Customership iPad Amazon.com & Kindle Next Step in Banking Social Media Multichannel Enterprise 2.0 Deregulation “ Food Elevators”

4. Disruptive passion

5. In my pocket:

7. So let’s instead talk about something I also like: the information society

8. … lets start by looking at what happened in the 90s? Source: Finnish Bankers Association

9. Banks leading the revolution 97 % of transactions in Finland are digital

10. … and Sweden is today the country in Europe where the least people visit a bank branch Forrester (2010)

11. Thank you banks for accelerating the information society!

12. … but:

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

14. Banks are not [today] a role model in front office innovation!

15. TheFrankBank.com (Created 3 years ago) Fast Internet Services Microsoft & Tieto Information Access

16. Customers want [demand] great services [experiences] …something new players in the ecosystem actively are pushing (Paypal, Mint, Wesabe, Kwedit, Balancion , Nokia Money et al.)

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

18. A lot of the challenge around payments is front office simplicity… SquareUp.com Sales volume following eBay purchase and integration of PayPal (UK volumes) iTunes.com

19. Going Forward: “Social media and networking drives changes in financial services” Tieto Whitepaper, 2008 Kiva.com

20. 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 But the core must be performed excellent

21. It has never been this easy to start a bank.

22. What about mobile front office innovation?

23. A realization: I rarely do my financial decisions at 7 pm on the 25th when I'm sitting in my sofa at home paying the bills. Banks need to get closer to my every day situations Mobiles are always close to the decision… …and soon transaction!

24. Forrester 2010; The State Of Mobile Banking In Europe: 2010 Currently app fever… … but, less than 1% of Europeans with a mobile phone use downloadable mobile applications to access their accounts

25. 85%: “ No, I have never used mobile banking” Reason #1: I see no value Forrester 2010; The State Of Mobile Banking In Europe: 2010

26. What is certain: we have not found the dominant design for mobile banking. It’s for the most part marketing, not strategic business development pushing mobile services. There is not any silver bullet business case(s) - YET

27. As the mobile device becomes ”just another touchpoint”, a bank’s lack of a strategic approach to mobile retail banking will seriously damage its competitiveness in the long term” Gartner 2010 June; Time to Migrate Toward Mobile Financial Services. #G00200787. ”