1. 1
Willem Schellekens, Co-founder of the ING Innovation Studio
Johan Löfmark, Partner Digital at Tata Consultancy Services
Dagens Industri FinTech Event; Stockholm, Sweden; 29 September 2016
Mastering Open Banking in the
Emerging Experience Economy
#DIFinTech

2. 2
Nordics have been a pioneer in digitalizing financial services
Cost per
financial
transaction
world leading
Emerging
towards a
cashless
society
Adoption,
penetration and
interactions
through mobile
services highest
in world
First in world with
broad adoption of
online banking
Over 99%
of banking
interactions in
digital channels
Digitalized
customer
behaviors

3. 3
Business Change Centric
Digitalizing the Business
Lead KPI: Business Growth
But, we have just started our digitalization journey
Customer Centric
Digitalizing the Experience
Lead KPI: Net Promoter Scores
Transaction Centric
Digitalizing business processes
Lead KPI: Cost per transaction
DEGREE OF
DISRUPTION
PAST
• Online banking
• Digital Payments
• Credit Cards
• ATM’s
• n.
• Omnichannel
• Mobile channel
• Personalization
• Realtime
• Rightselling
• Digital Advice (&PFM)
• n.
• Dissemination of digital in the
Enterprise, Culture and Innovation
• New Business and Revenue Models
• New digital Products and Services
• Externalization of Services
• Ecosystem Collaboration
• 100% STP in Realtime
BANKS FINTECH
THE GAP & THEME OF TODAYS CONFERENCE
FUTUREDigital 1.0

4. 4
Digital is once again identified as core to Financial Services industry
62
14
Source: TCS Analyst Team.
Please note that titles most likely has no linkage to strategy or likehood to generate results. Some similar titles have been included. Data not inteded for business decisions.
Number of people with title ”Chief Digital Officer” (CDO)
in Swedish Financial Services (incl. insurance) Industry
#
t.20162015
HIGH LEVEL INDICATIVE ANALYSIS

5. 5
Most Nordic Banks embarked on (second) aggressive digitalization journey
ILLUSTRATIVE ”DIGITAL” TCS ENGAGMENTS IN NORDIC BANKING SECTOR; 2016
Front End
transformation
program
100% Mobile
Bank
Robotics Process
Automation
Next Wave
(Mobile)
Payments
Digital Floor &
Digital Lab
APIfication
Architecture
(including PSD2
preparation)
GDPR
&
Customer 360
Big Data
100% E2E STP
Chatbot
Banking
Digital
Workplace

6. 6
In theory incumbents are in the inner track of tomorrow
Banks Valuable Assets:
Customer relationships
Customer data
Balance sheet strength
Legislation know-how
Talents
....what more?
FinTech Challenges:
Regulation, Privacy, Security
No operational backbone
Scaling
Untested in periods of high
interest rates, increased risk
and reduced investment

7. 7
But: always the great firms that fail with introduction of new technologies
Incremental
Business Change
Change Logarithmic
Progression of
Technology
Change Exponentially
Digital Business
Transformation
t.
Prof Clayton M. Christensen
Enterprise 2.0
Crowdsourcing
Sharing economy
Industrial Internet, Internet of Things, Machine2Machine
Telematics & Self Driving Cars
Automation of knowledge work
3D printers (&scanners)
Smart/Connected Home
Wearables
Cryptocurrencies
Artificial Intelligence
Robotics & Drones
Pervasive Analytics
API’s
Co-Creation
Platform Thinking
Video Analysis
n.
The person behind the disruptive
innovations and technologies theory

8. 8
It’s a new marketplace; driven by dematerialization of the bank
We have always (proudly) provided
Customer with a complete and fully
integrated value proposition
...but we are rearly able to
provide solutions to the needs
of everything for everyone
API-fication
Ecosystem Maturity
•Digital exponentionally
reducing cost of integration
•Realtime self assembling &
organizing of People, Process &
Systems
•Legislation accelerating (PSD2)
Dematerialization Key Drivers:

9. 9
Dematerialization will create bank banking platforms
Own products
& services
Other products
& services
Startups
External Marketplaces
Other Financial
Services Firms
The worlds largest accommodation
provider owns no real estate
The worlds largest taxi
company owns no vehicles

10. 10
This digitalization ambition includes exploring Fintech
Acquisitions
Own Venture
Capital funds
•SBAB acquiring Booli.se
•Nordnet acquiring ShareVille
•etc...
Buy minority
stakes
•SEB investing in Tink
•Nordea investing in Wrapp
•etc...
•Collector Ventures
•Nordnet Ventures
•etc...
Incumbent going
FinTech
•Handelsbanken Finans -> Ecster
•DNB -> Vipps
•etc...
Collaborate
•Ålandsbanken & Dreams
•Swedbank & Sprinklebit
•etc...
Now feel the heat 1 degree at a time as
FinTech started to target the profitable
segments in marketplace
Source: McKinsey Panorama; FinTech Database - Global
Illustrative Responses by established actors
Startup
Accelerators
• Nordea Startup Accelerator
•STING Fintech (SEB a partner)
•etc...

11. 11
...but we to often tend to have an inside-out apporach
Great Track record of
FinTech in Sweden
etc.
Illustrative Global FinTech Actors

12. 12
The needed outside-in perspective; customer at the epicenter
Great Track record of
FinTech in Sweden
etc.
Illustrative Global FinTech Actors

13. Thank You
IT Services
Business Solutions
Consulting