Presentation held at Affärsvärlden's event Bank 2.0 2011.

1. Bank ≠ Innovation
© 2011 Tieto Corporation
AFFÄRSVÄRLDEN BANK 2.0 CONFERENCE
STOCKHOLM 16 NOVEMBER 2011
JOHAN LÖFMARK | TIETO CORPORATION johan.lofmark@tieto.com

2. Hello, i’m Johan.
Sailing & Skiing
India Creative Destruction
Transparent Government
Social Media & Enterprise 2.0
The New Digital World Perpetual Beta
Archipelago Twitter Transitive trust
Innovation Workshops Digital Customership
Multi-channel OpenID Digital Natives Internet of Things
Facebook
Connected World The Long Tail Amazon.com & Kindle
New Way of Work Near Field Communication
Next Step in Banking
Uplifting Service Experiences
iPad Gary Hamel
© 2011 Tieto Corporation

3. Sometimes I’m right…
© 2011 Tieto Corporation
Computer Sweden 2010-02-12

4. Sometimes I’m right…
• Nordic Card Markets Conference, 19-20 January 2011, Stockholm, Sweden
• Baltic Sea Card Conference, 12-13 April 2010, Riga, Latvia
• CAC Conference, 7-8 June 2011, Reykjavik, Iceland
•…
© 2011 Tieto Corporation
Computer Sweden 2010-02-12 …but, often I’m wrong

5. 18,000+ talents
in ≈25 countries
Our biggest Our 2nd biggest Experts in
business area: business area: Digital Business
© 2011 Tieto Corporation
Telecom R&D Financial Transformations
Services

6. What both Johan
and Tieto are
passionate about:
The Information
Society…especially
the impact on
financial services
© 2011 Tieto Corporation

7. All this started in the 90s…
© 2011 Tieto Corporation Source: Finnish Bankers Association

8. ...we have digitalized money...
PS: PIGS
© 2011 Tieto Corporation
World Payments Report (2010)

9. …and we have digitalized the
customer relation; Sweden is today
the country in Europe with the least
people visiting the bank branch.
© 2011 Tieto Corporation

10. INFORMATION
SOCIAL
Uplifting the
CUSTOMER
EXPERIENCE
MOBILE
CLOUD
© 2011 Tieto Corporation

11. Probably most
important: How to
Financial Services as accelerate changes?
a Service
Agenda
Banking in the hands
of customers
When was the last
time you smiled
when interacting with
a bank?
The Social Bank
Use the Data
© 2011 Tieto Corporation

12. The Data Driven Bank
What would a Google Bank do different?
© 2011 Tieto Corporation

13. “We at this Big4 bank track
certain type of transactions on
our customers accounts.
Garbage bills is an example of a
trigger we use as we then learn
that the customer have a house”
…but wait a moment: isn´t that
© 2011 Tieto Corporation
to late to assist with a loan?

14. Case Study: American Express
Using statistics and consumption
patterns = Frauds -20%
David Cearley; Top10 trends presentation at Gartner Symposium Barcelona Nov 2011
© 2011 Tieto Corporation

15. Value in utilizing the data
mint.com
© 2011 Tieto Corporation

16. The Social Bank
What would a Facebook Bank do different?
© 2011 Tieto Corporation

17. Service innovation by data +
social media behaviours
Merchant Amount Would you
recomend it?
IKEA 23 Euro
© 2011 Tieto Corporation

18. Service innovation by data +
social media behaviours
Merchant Amount Would you
recomend it?
IKEA 23 Euro
© 2011 Tieto Corporation

19. We are what we buy?
Shopping is in it’s essence a social activity
blippy.com
swipely.com
© 2011 Tieto Corporation

20. Guess what: Choosing bank is a social activity
◄ My friend Charlotte’s
facebook feed
© 2011 Tieto Corporation

21. Guess what: Choosing bank is a social activity
◄ My friend Charlotte’s
facebook feed
© 2011 Tieto Corporation
…and the decision might be based
solely on your mobile app experience

22. Banking in the
hands of customers
What shall we do with all account numbers when
they are being replaced by phonenumbers
© 2011 Tieto Corporation

23. The mobile channel is getting
much attention today
© 2011 Tieto Corporation

24. Going from marketing apps to
service innovations
SquareUp.com
iZettle.com
© 2011 Tieto Corporation

25. The most exciting
thing: Mobiles are
always close to the
customer situation
& transaction.
That’s new to banks
(we don’t make our financial decisions in the sofa on the 25th but
rather in our daily life; on a apartment hunt, in a bar…banks can
finally be close to these situations
© 2011 Tieto Corporation

26. Online banking is today mainly the
channel for routine transactions
© 2011 Tieto Corporation Source: Datamonitor FSCI survey June 2010

27. Prediction #44:
Mobile banking will replace
online banking as the
preferred channel for
routine transactions
© 2011 Tieto Corporation

28. Why? The mobile channel has
three unique capabilities
Simplicity Immediacy Context
Interactions that Information that Information that is
customers do matters to customers relevant to the
frequently and require immediately customer´s current
few steps to complete location
PS: ask my collegues Ville Soitu or Sami
Uski about connecting your bank to
© 2011 Tieto Corporation iOS/Android native messaging platform

29. Don´t forget that the core
business of banking is TRUST
...so it is vital for us to
start to manage the
mobile channel in the
same safe and stable
way as our core IT
© 2011 Tieto Corporation

30. What about the online version?
-> Will emerge as the primary
sales channel
• Online banking will emerge
as a predominant sales
channel.
• Online banks will have to
migrate towards Amazon
type of customer
experience, including:
• Tailored content to
individual users
• Allow personalized
configuration
• Use data to match
customers with the right
products
• Track user behaviour
© 2011 Tieto Corporation

31. Customer Situations
?
?
? ?
Customer Profile
CRM Self Online
data personalization behaviours
Match
profile
!
! ! ! ! with ! !
! ! ! !
offering
!!
! !
© 2011 Tieto Corporation
! !
Products and offerings

32. When was the last time
you smiled when
interacting with a bank?
What would a Apple Bank do different?
© 2011 Tieto Corporation

33. Great banking experience?
≈25% of
Scandinavians
are dissatisfied
with their bank
SIFO
© 2011 Tieto Corporation

34. Entering a paradigm shift in
financial services digitalization
From efficient …to front end
transactions… innovation
© 2011 Tieto Corporation

35. Banks are not good at front office
innovation (anymore)
© 2011 Tieto Corporation
Johan’s bank; almost three years ago (look exactly the same today)

36. Banks are not good at front office
innovation (anymore)
© 2011 Tieto Corporation
Johan’s bank; almost three years ago (look exactly the same today)

37. The power of removing friction
for the user
Sales volume following eBay purchase and integration of PayPal (UK volumes)
© 2011 Tieto Corporation

38. Financial services
as a Service
Why do we still buy servers and applications when the
bank is being delivered as a service from the Cloud?
© 2011 Tieto Corporation

39. Financial Services CIO priorities
Gartner Symposium Barcelona Nov2011 (based on Gartner annual CIO Survey)
© 2011 Tieto Corporation

40. It has never
been this easy
to start a bank
© 2011 Tieto Corporation

41. Financial services as a service?
© 2011 Tieto Corporation

42. Probably the most
important question
How to accelerate change and take the Visions to Execution
© 2011 Tieto Corporation

43. How to accelerate change?
FIGLO (et al.)
SmartEngage
iSuggest
© 2011 Tieto Corporation

44. Great subjects for coffee with
me and my collegues today:
Our Mobile
SaaS solutions Banking
Digital Partner in driving
Front Office innovation
© 2011 Tieto Corporation

45. Thank you
& welcome to the world of Tieto
© 2011 Tieto Corporation