Bank 2.0From Visionto ExecutionGustaf BrandbergDigital Business AdvisorDigital Transformation & ConsultingTieto Corporationgustaf.brandberg@tieto.com

2XCAP Social Media Summit | Josh2009-05-26

Congratulations!96 %self-service ratio of financial transactions in Sweden. 88 % of Swedish bank customers did not visit a bank branch last 12 months.1.02.0

Business case for Bank 1.0: cost per transaction

92 million Europeans useonline banks(+30% since 2006)…but they just look and pay. Nothing else.Forrester 20 August 2009

Do you agree with the statement:“I am well informed about personal finance products”?74%of 22,102 European customers saysnoForrester, Why Financial Company Web Sites Need Online Advice Tools, 2008

25%of Scandinavians are dissatisfied with their bankSIFO (2008)

What's Bank 2.0?Learn about your customers’ situationsprovide simplicityassisted by a human touchon the people weband take it from vision to execution.

# 1. Learnabout your customers’ situations

Quiz:When would you like to know that a customer needs a house mortgage loan?SIFO (2008)

A) Whenshecontacts you with an application?

B) Whenshe has found the right object?

C) Whenshe is starting to thinkifshecanaffordsomethingbigger?

Your customers have tons of questionsabout…1611/11/2009Cash flow: Can I afford to…?Howmuchdo I needto save?Assets: Howrich (or poor) am I?Am I getting richer or poorer?Scenarios (and offerings):Howcan I improve my situation?Howcan my bank help me?

Things happen in life...How will my divorce affect my economy?What happens when I retire?What if I lose my job?Can I afford a bigger house?TheFrankBank.com

????SituationsSelf personalizationBusinessdataOnline behavioursOfferings

# 2. Provide simplicity

Stop Designing for Paper.Start designing for the Customer.►Smartbudget.se | Mint.com | Wesabe.com

Key message:Simplicity is a competitive advantageSIFO (2008)

Less is moreSimple searchCheck your account balance and budget in the storeTransfer money to your child’s account with one word

Get into your customers pants, close to the transactions

Re-thinksecurityThe customerconfigures services in a high-securityenvironment.Example: Adde-inovicesupplier.The customercan read information and performpre-configured services with low-securitylevel(PIN, OpenID)Example: Paye-invoice21

# 3. …assisted by a human touch

A Billion SEK Question:Q: Why don't the Swedes buy their insurances online?

A: Because it’s a human touch product40 % Forrester; Swedish Online Insurance Sales Forecast 2006 to 2011; 2007

The human assistedwebIntegrate with Contact Center Platform.

Break the silosBranch OfficeCustomerSelf ServiceManual ServiceDigitalDialoguesreactiveCommunity ModeratorproactiveCustomer Service

# 4. …on the People Web

Social MediaFrom World Wide Web to The People Web

SocialFrom World Wide Web to The People Web

Digital DialoguesFrom World Wide Web to The People Web

Digital DialoguesMorethancommunication

Digital DialoguesBusiness transformation

Social Media > Facebook & YouTube

Yes, new channels to customersTwitter.com

Yes, new business modelsKiva.org

But the scope for social is largerExample:Crowdsource categories for transactionsSmartbudget.se

The list goes on and on…Other families in your area spend 12% less on foodOnline community for share savings associationsCreate relevance by comparing customer’s profiles to other customersCrowdsource recommendationsHosting customer advisory panels and beta testing groups…Other people in your situation bought this productSmartbudget.se

# 5. …and take it from Vision to Execution

IT vs Business

IT is Business

Benchmark

2/3 of costs keep the lights onForrester Leadership Boards report “Leadership Perspectives 2008: IT Infrastructure And Operations”Jonas Kjellstrand, Gartner, Nov 20082/370%

Financial Services is already the industry that spends the most on IT.Gartner; IT spending and staffingreport, 2009 | ID#G00164940

The answer is not to spendmore……its to spend different!

Ok, we know we need to be more lean, butwhat can we do right now?SIFO (2008)

Key Enabler: Information AccessGartner Magic Quadrant for Information Access Technology, 2009The Magic Quadrant is copyrighted September 2009 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from Microsoft.SOURCE: Gartner, Inc., “Magic Quadrant for Information Access Technology” by Whit Andrews, September 2009

PS. We would love to talk to you more about...Warning: Sales messageThe ideas in this presentationThe internet bank with 5,2 million customers that we builtWhat our 200 contact centre professionals have done for some of Europe’s largest companiesOur mobile banking research projects with Nokia and othersThe online communities and peer-to-peer lending functionality that we are buildingYour challenges and our role as your trusted advisors on the journey ahead

PPS. URGE 2006Page 52Mats Agerviglobaliseringsexpert18/11och26/11Magnus Lindkvisttrendspanare3/12Haga Forum07:30 - 09:30

ThanksSee you in the Tieto showcase.This presentation will be available on slideshare.net/TietoSweden/Gustaf BrandbergDigital Business AdvisorDigital Transformation & ConsultingTieto Corporationgustaf.brandberg@tieto.comwww.tieto.com