Digital Innovation Digest by Initio. Special focus on Belgium and Digital Pan European ID. Swoon is coming in Belgium ITSME has won 40% of Belgian Private Bank DELEN take over fintech Swanest

1. DIGITAL INNOVATION DIGEST
BELGIAN FOCUS
.
#25 – June 2021

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01
02
SWOON IS COMING IN BELGIUM
Digital & Innovation Digest #25
3
6
ITSME HAS WON OVER 40% OF
BELGIANS
03 8
PAN-EUROPEAN DIGITAL ID
04 10
PRIVATE BANK DELEN TAKE OVER
FINTECH SWANEST
INITIO &
THE SQUARE GROUP
05 14

3. 01
SWOON IS COMING IN BELGIUM

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 The fintech Swoon intends to seduce Belgian consumers with
an “all-in” subscription and an offer focused on savings.
 Founded in 2019 in Lille, Swoon is already investing its first
foreign market, and this is naturally Belgium.
 Swoon is a payment service provider (mandataire en opération
de banque et en service de paiement: mobsp) and as
consequence should not be seen or called as « neobank ».
 Swoon is not free and charge 6,9 € per month for the use of its
payment services. In addition more fees can be expected for
customers who will use services like cash withdrawal, out of
SEPA zone purchase, debit rejection etc.
 The family owned company (8 employees) targets to deploy
itself first in France, Belgium and Luxembourg then to aim to
North Europe (Denmark, Netherlands, Germany…)
 The core customer target is described by its founders as
investor and savers above 35 years, despite the fact that
Swoon is currently not proposing any Saving account or
investment product.
Swoon is coming in Belgium
EXECUTIVE SUMMARY
• Founded in 2018, commercial launch in 2019 with
headquarters located in Lille (France).
• The current basis offer is hyper classical and based on Debit
Mastercard, French IBAN (payment account), Apple and
Google Pay integration, and a mobile app running on
Iphone or Android phone.
• 10,000 customers are reported to have signed up for an
account in France. (Press estimation).
• According to the Neobank’s website, 2 additional features
are currently under development:
• A (virtual) financial advisor, described as a robo-
advisor able to perform investor profiling and risk
assessment.
• A kids account.
• 'Swoon' and 'Swoon Europe' are registered trademarks of
Financière de Garantie SAS, intermediary in banking and
payment services (MOBSP) registered by the ACPR (Fr.)
SWOON: Fact Sheet

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Seriously… what’s the differentiating factor?
 Until now, no elements allow us to say that Swoon will be more than “just
another fintech” who pretend to revolutionize the finance world in an
already overcrowded business landscape by bigger names like Revolut,
N26 and many others.
 Of course, Swoon is promising “soon” more features like insurance covers
or very advantageous saving accounts (up to 3%!) to feed ethic
investments, but this seems poorly credible in the current context of
persistent low interest rates. Moreover, Swoon and its partners do not
own any true or legitimate Banking License.
 The French fintech tries also to highlight his green commitment. But here
again, promises are vague or very modest (like the potential installation
of boxes to collect and recycle outdated plastic bank cards).
Swoon is coming in Belgium
OUR OPINION
CONCLUSIONS
 In the current state of commercial development we don’t see how Swoon could emerge from the “Fintech red ocean” and find his way
to the critical mass of customers sufficient to ensure rentability.
 Due to the lack of strong margin-generating products and without the support of a large group or financial institution, we do not
believe that Swoon's life expectancy will exceed a few years.

6. 02
PRIVATE BANK DELEN TAKE OVER
FINTECH SWANEST

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 In May 2021, the Belgian private bank DELEN announced the take
over of the (Belgian) fintech SWANEST.
 Created in 2014 SWANEST is an "investment decision assistant“
operating through quantitative financial analysis, it allows the
detection of trends in the evolution of assets such as shares or bonds.
 According to DELEN's official, the goal of this purchase is to integrate
Swanest’s know how and to strengthen the bank’s IT, NOT to change
the way DELEN’s funds are managed.
 Swanest’s offer is based on portfolio tracking tool and automated risk
scoring on assets owned. The service can be accessed by self investor
or by Wealth Managers. In the second case, the app can be white
labelled like the competitor Gambit (Birdee).
 Founded in 1936 by André Delen, the Private Bank Delen is currently
owned by the holding Ackermans & Van Haaren (also owner of Van
Breda & C° Bank).
 Delen is active in Family services, Estate planning and discretionary
wealth management.
Private Bank DELEN take over fintech SWANEST
EXECUTIVE SUMMARY

8. 03
ITSME HAS WON OVER 40% OF BELGIANS

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 ITSME the Belgian mobile id app started in 2017 by Belgian Mobile Id
consortium (Belfius, BNP Paribas Fortis, KBC/CBC & ING and mobile network
operators Orange, Proximus & Telenet Group) has convinced 3,2 millions
users (around 40% of the 18+ population).
 On average, 3.500 news users are subscribing everyday. 92% of them are
active users with an average of 7 use cases par month.
 The main service of ITSME is the online authentication, accepted by more
than 150 partners (banks, insurance companies, Government agencies etc.)
which replaces the use of Token, password or signing up device (Digipass).
 Since end of 2018, ITSME is also recognized as Qualified Trust Service
Provider within eIDAS EU legal framework and can therefore be used as
online qualified signature device.
 ITSME Sign is already proposed on Connective, Doccle, Isabel Group and
Luxtrust platforms.
 The annual period of online tax declaration was usually a momentum to
convince new users to enroll to ITSME but this year the Covid crisis and the
associated containment contributed also in the acquisition of new users.
ITSME has won over 40% of Belgians
EXECUTIVE SUMMARY
40%
Registered users vs.
Total active population
3.500
new users every day
7 uses per month (avg.)

10. 04
PAN-EUROPEAN DIGITAL ID

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 On 3th June 2021; the Commission today proposed a framework for a
European Digital Identity which will be available to all EU citizens,
residents, and businesses in the EU.
- Citizens will be able to prove their identity and share electronic
documents from their European Digital Identity wallets with the click
of a button on their phone.
- They will be able to access online services with their national digital
identification, which will be recognized throughout Europe.
- Very large platforms will be required to accept the use of European
Digital Identity wallets upon request of the user.
- Use of the European Digital Identity wallet will always be at the
choice of the user.
The European Digital Identity framework
 Under the new Regulation, Member States will offer citizens and businesses
digital wallets that will be able to link their national digital identities with
proof of other personal attributes (e.g. driving license, diplomas, bank
account).  The European Digital identity will be also a digital vault.
 These wallets may be provided by public authorities or by private entities,
provided they are recognized by a Member State.
 The new European Digital Identity Wallets will enable all Europeans to
access services online without having to use private identification methods.
PAN-EUROPEAN DIGITAL IDENTITY
EXECUTIVE SUMMARY
KEY FACTS
The Commission's 2030 Digital Compass sets
out a number of targets and milestones which the
European Digital Identity will help achieve. For
example:
Today (2021)
• Only 14 countries in EU have an official
online digital identity system.
• 60% of the EU population in 14 Member
States are able to use their national eID
cross-border.
• Only 14% of key public service
providers across all Member States allow
cross-border authentication with an e-
Identity system (like ITSME in Belgium).
By 2030
• all key public services should be available
online,
• all citizens will have access to electronic
medical records; and
• 80% citizens should use an eID solution.

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The European Digital Identity will be:
• Available to anyone who wants to use it: Any EU
citizen, resident, and business in the Union who would
like to make use of the European Digital Identity will be
able to do so.
• Widely useable: The European Digital Identity wallets
will be useable widely as a way either to identify users
or to prove certain personal attributes, for the purpose
of access to public and private digital services across
the Union.
• Users in control of their data: The European Digital
Identity wallets will enable people to choose which
aspects of their identity, data and certificates they share
with third parties, and to keep track of such sharing.
The Commission invites Member States to establish a
common toolbox by September 2022.
PAN-EUROPEAN DIGITAL IDENTITY
EXECUTIVE SUMMARY
Source: ec.europe.eu
Practical consequence of EU-Id :
• Social Media or e-Commerce platform will no longer be able to impose solely the use of their own identification systems, they will
have to accept the EU digital identity as authentication method (but they will still be authorized to propose their own identification
system as option). EU digital ID will be a challenger to ie. Facebook authentication, Google account or Apple Id.

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PAN-EUROPEAN DIGITAL IDENTITY
EU COUNTRIES WITH NATIONAL E-ID SCHEMA UNDER EIDAS
Country with national ID schema (EIDAS)
Country working on national ID schema (EIDAS)
Country with local ID schema (non-EIDAS)
Country without any digital ID schema
Non-EU country
"Every time an app or website asks us to create a new
digital identity or to easily log on via a big platform,
we have no idea what happens to our data in reality,"
Ursula Vander Leyen.
Commission President.
Instead of using your Facebook profile to log in to other apps, say, the
Commission is proposing "a secure European e-identity, a technology
where user can control himself what data and how data is used.
© Initio 2021

14. 05
INITIO &
THE SQUARE GROUP

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• 700 consultants, 95% employees
• 52 % men / 48% women
• Turnover 2019: 120m €
• 2.5% of turnover invested in training
• 1% of turnover invested in R&D
• Large team in Finance, Risk, Regulatory & Compliance
• Business/Process analysts & Project managers with Digital
experience
KEY INFORMATION
Initio in a nutshell
Initio is the international brand of the Square group, a business consulting firm in strategy, organizational and
operational consulting.

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Initio in a nutshell
Initio is organized in 4 business practices and 8 areas of excellence

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Areas of excellence
Businesses need to think ahead, to make decisions that will take them to the top.
Initio guides its clients by making its expertise available to them in 9 key areas.
.
INNOVATION
Square supports its clients in the transformation
of their innovation dynamics. Our consultants,
with their tailor-made approach, help to design,
industrialize and govern innovation to ensure the
sustainable growth of companies and their
transformation into socially and environmentally
responsible entities.
PEOPLE & CHANGE
Square helps its clients to acquire, integrate and
develop their organisation’s human capital. In
order to create greater commitment within teams,
our interventions focus primarily on adapting work
methods to operational and cultural changes, the
effectiveness of human resources departments
and skills development.
MARKETING
Square supports its clients across the entire
marketing spectrum: strategic marketing,
relationship marketing, product marketing,
communication, pricing, customer satisfaction.
Our expertise, initially focused on the banking and
insurance sectors, is now aimed at all B2C
industries or services.
SUPPLY-CHAIN
Square ensures the operational excellence of
logistics, from procurement to the last mile, with
differentiating customer journeys. Our experts
design omnichannel solutions that implement best
practices in information systems, mechanization
and robotization.
DATA
Square develops Data strategies and ensures their
operational implementation by taking the lead in
Data Management, Data Analysis and Data
Science projects. Our expert and pragmatic
approach aims to enhance and secure companies’
data assets.
REGULATORY & COMPLIANCE
Square advises its clients in the rollout of new
regulations, as well as in the optimization and
enhancement of control systems. This area of
excellence is supported by a community of
experts of 130 consultants who, in addition to
client assignments, conduct major research and
publication work.
RISK & FINANCE
Square leads the management of financial and
non-financial risk control programs, as well as the
transformation of the Risk and Finance functions
in response to changes in prudential regulations
and issues related to data control.
DIGITAL
Square assists its clients in the development of
their digital strategy, the design and
implementation of new digital journeys for their
clients or their employees, as well as in all internal
transformation projects and support for new
design methods.
CSR & SUSTAINABLE FINANCE
Initio supports its clients in their transformation
towards a more responsible model. This support
covers the strategic definition of the CSR
ambition, the transformation of business models,
and compliance work both in terms of their
regulatory aspects and their Data Management
and Data Science aspects. Initio also assists its
clients in their human and cultural support for
their CSR policy.

18. Initio
@initio_eu
17, Boulevard General Wahis
1030 Schaarbeek
Belgium
+32 (0)2 669 77 44
Initio.eu
blog.square-management.com