At his presentation at Bankdagen 2012, Mr Johan Lofmark from Tieto shared his thoughts around how critical it is for actors in the payment industry to focus on the users when designing new disruptive mobile payment services.

1. Mobile payments will only be
© 2011 Tieto Corporation
able to disrupt if User is King.
Bankdagen 2012 | Stockholm 30 May 2011
Johan Löfmark, Tieto Corporation

2. Hello; I’m Johan
M2M
Tablets
Internet of Things
Creative Destruction
Dynamic Pricing
Sailing & Skiing
Love to challenge Connected World Predictive Analytics
our customer to Enterprise Application Stores
Cashless society
Transparent Government
explore disruptive Networked economy
Perpetual Beta Augmented Reality
Activity Streams
digital opportunities Image/Speech/Gesture recognition Group Buying
@johalof Transitive trust
Archipelago
Big Data and Analytics eGovernment
There’s an app for it
Smart products Digital Customership
Innovation Workshops
Realtime economy Social Media Gamification
iPad
OpenID Digital Natives
Facebook Internet of Things
The Long Tail eHealth
Mobile & Contactless payments Amazon.com & Kindle
India
Location-aware applications 2003/98/EC Cloud
Enterprise 2.0 Near Field Communication
Realtime society
New Way of Work
Next Step in Banking
Uplifting Service Experiences App economy
© 2011 Tieto Corporation
AMI Connected and social TV
Gary Hamel
Dynamic Pricing
Digital Natives
Idea Management & Open
Innovation

3. One of my favourite innovation areas for
digital technologies is financial services
Personnel Branches
60 000 6 000
50 000 5 000
Personnel
40 000 4 000
30 000 3 000
Branches
20 000 2 000
© 2012 Tieto Corporation
10 000 1 000
70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04
Source: Finnish Bankers Association

4. Slowly we are starting to understand
how to create digital experiences and
not just digitalize business processes
© 2012 Tieto Corporation

5. Our secret gameplan for today:
Introduce a new conversation subject
e-Banking
Supply
Cards Chain and
Customer Contact FX
Centre Payments
Ticketing Front End Management
Financial
eWallet Business messaging
mBanking Consulting Digital
Remote Front Transaction Cash
Payments Office
Mobilizing Unified Banking Management
Desk
interactions Proximity
Payments Core
Banking
eInvoicing
Enterprise
Mobilizing Enterprise Project &
mobility Content Program
things Enterprise Management
Manage-
Architecture
ment
Asset and Life
Custom ERP Insurance
Wealth
Mobilizing Internet Application
Test & Management
Develop-
workforce of things
ment Consulting & Validation Securities
Services trading
System
Mobile sales SAP
tools, time Integration Information
Management
reporting Fund
et al. Enterprise Capitals Management
Architecture Security Markets
Application Enterprise
Debt Business Productivity
© 2011 Tieto Corporation
Collection Management Intelligence
CRM Solutions
Managed
Debt Infra-
services
Collection & Mortage
structure
Services
Mortage
Unified
Communi-
Instalment cations

6. We are still in the epicenter of change
for digital financial services
Social Analytics
Cloud Mobility
© 2012 Tieto Corporation

7. The mobile channel is finally getting
the attention it deserves
© 2012 Tieto Corporation

8. Why? The mobile channel has
three unique capabilities
Simplicity Immediacy Context
© 2012Tieto Corporation

9. Continued importance
is easy to predict
Proportion of global online consumers who have conducted each
activity online in the last six months
Check balance 84%
View statement 75%
View recent transactions 74%
Pay bills 61%
Transfer money between accounts 55%
Transfer money to other people 48%
Set up/ amend standing orders 17%
Set up/ amend direct debits 16%
Change personal details 16%
Order card, cheque book etc 14%
Set up email/SMS alerts 12%
Used online chat facilites 6%
© 2012Tieto Corporation Source: Datamonitor FSCI survey June 2010

10. Prediction #12:
Mobile banking will replace
online banking as the
preferred channel for
routine interactions
© 2012 Tieto Corporation

11. But please remember that to succeed in the
mobile channel we need to build the trust
Sales volume following eBay purchase …your apps are no
and integration of PayPal (UK volumes)
longer a marketing
initative
© 2012Tieto Corporation

12. Increasingly important as we move from
interactions to transactions
© 2012 Tieto Corporation

13. The most frequent frase in Swedish stores:
”Would you like to pay cash or with card?”
One of my favourite quotes:
“these are legacy interfaces for
© 2011 Tieto Corporation
accessing the payment enabler”
Ville Sointu; Tieto Boston USA office

14. Quick sidetrack: I got that quote
through our internal social media tools
© 2011 Tieto Corporation

15. Technology has been ready for
some time now…
© 2012 Tieto Corporation

16. Great starting point for innovation:
the Customer relation already
digitalized and we love our mobiles
Sweden is today the
country in Europe
with the least
people visiting the
bank branch.
© 2012 Tieto Corporation

17. But (as always) we tend to
underestimate time to market
© 2012 Tieto Corporation
• Nordic Card Markets Conference, 19-20 January 2011, Stockholm, Sweden
• Baltic Sea Card Conference, 12-13 April 2011, Riga, Latvia
• CAC Conference, 7-8 June 2011, Reykjavik, Iceland

18. Who will win?
etc…
© 2012 Tieto Corporation

19. Who will win? Probably cards!
etc…
© 2012 Tieto Corporation

20. The key actors (both retail
and banks) are aiming on
lowest cost per transaction
which is excellent served
by current card
infrastructure.
Dangerous assumption:
payment war is on
operational excellence and
not customer experience.
This is where plastics are
most sensitive for
© 2012 Tieto Corporation
disruptive new services.

21. The mobile is
more than just a
payment interface.
It can add value to
the transaction.
© 2012 Tieto Corporation

22. Banks perform the core business excellent; e.g.
transactions (STP), risk management and trust…
…but they are not a role model of designing
customer experiences
FRONT END BACK OFFICE
INNOVATION INDUSTRIALIZATION
Customer focus More efficiency
Channel development Optimized processes
Partnerships Seek volumes
Time-to-market Self service
Flexibility Increased STP
Marketing sales and support Initiation Processing
Proposition Contract Client reporting Payment Operating Clearing and
© 2012 Tieto Corporation
Development Management and support instructions Processing Settlement
Simplified Payments Value Chain
Simpified Payment Value Chain

23. Recommended Actions
Tomorrow
• Try out the new service innovations;
register an account with iZettle, Bart,
Swish, WyWallet (etc)
Next 30 days
• Run your apps as safe and secure as your
core banking services. Mobile is no longer
a marketing initative.
After summer
• Decide if you want to be a processing
© 2012 Tieto Corporation
house or an innovation powerhouse…

24. Probably most important:
How to accelerate change and
take the Visions to Execution?
Welcome to Tieto.
© 2012 Tieto Corporation

25. Thank You!
Continue the conversation on:
© 2011 Tieto Corporation
blogs.tieto.com/financialservices-SE
slideshare.net/tietocorporation
@tietosweden