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The Future of Financial Services: Front Office Innovation

A discussion on the need for banks to embrace front office innovation in order to meet the demands of customers and stay competitive in the changing landscape of financial services.

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The Future of Financial Services: Front Office Innovation

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  1. \TietoCorporation The natural payment monopoly for banks is over MobeyForum; 17 June 2010

  2. Ourbiggest business area: Telecom R&D Experts in Digital Business Transformations Our 2nd biggest business area: Financial Services

  3. Creative Destruction Sailing & Skiing Innovation Workshops @johalof Enterprise 2.0 Near Field Communication India Digital Natives “Food Elevators” I workbetween 9-5 with digital services for my customerscustomers (Digital Customership) The Long Tail OpenID Deregulation iPad Archipelago Transparent Government Digital Customership Transitive trust Social Media Next Step in Banking Gary Hamel & John Hagel Perpetual Beta Amazon.com & Kindle Multichannel Facebook

  4. Before Tieto How do you pay for music in a country with with no payment infrastructure (online banking, iTunes, credit cards) and ”cash corruption”? No digital sales channels! (low broadband penetration)

  5. Disruptive passion

  6. In my pocket:

  7. #Disappointed

  8. So let’s instead talk about something I also like: the information society

  9. …lets start by looking at what happened in the 90s? Source: Finnish Bankers Association

  10. Banks leading the revolution 97 % of transactions in Finland are digital

  11. …and Sweden is today the country in Europe where the least people visit a bank branchForrester (2010)

  12. Thank you banks for accelerating the information society!

  13. …but:

  14. Banking core business excellent performed; e.g. transactions, risk management and trust… …butwhatabout front office innovation?

  15. Banks are not [today] a rolemodel in front office innovation!

  16. TheFrankBank.com (Created 3 years ago) Fast Internet Services Microsoft & Tieto Information Access

  17. Customers want [demand] great services [experiences]…something new players in the ecosystem actively are pushing (Paypal, Kwedit, Balancian, Nokia Money et al.)

  18. Here is my key message today:The future of financial services and payments will definitely be bankenabled, but not necessarily bankdriven.Banks need to allow for innovative external services, support the good ones and copy the best. Mostcommonphrase from my customers 2010: ”time to market”

  19. A lot of the challenge around payments is front office simplicity… SquareUp.com Sales volume following eBay purchase and integration of PayPal (UK volumes) iTunes.com

  20. Going Forward: “Social media and networking drives changes in financial services” Tieto Whitepaper, 2008 Kiva.com

  21. But the core must be performed excellent Lars; my personal banker. ”The mainreasonwehave a bank is to get rid of the transaction costs for card payments.” Jörgen WennbergCEO, Ica Banken

  22. It has never been this easy to start a bank.

  23. What about mobile front office innovation?

  24. A realization: I rarely do my financial decisions at 7 pm on the 25th when I'm sitting in my sofa at home paying the bills.Banks need to get closer to my every day situationsMobiles are always close to the decision……and soon transaction!

  25. Currently app fever… …but, less than 1% of Europeans with a mobile phone use downloadable mobile applications to access their accounts Forrester 2010; The State Of Mobile Banking In Europe: 2010

  26. 85%: “No, I have never used mobile banking” Reason #1: I see no value Forrester 2010; The State Of Mobile Banking In Europe: 2010

  27. What is certain: we have not found the dominant design for mobile banking. It’s for the most part marketing, not strategic business development pushing mobile services. There is not any silver bullet business case(s) - YET

  28. ” As the mobile devicebecomes ”just anothertouchpoint”, a bank’s lack of a strategic approach to mobile retailbankingwillseroiuslydamageitscompetitiveness in the long term” Gartner 2010 June; Time to MigrateToward Mobile Financial Services. #G00200787.

  29. /thanks • Johan Löfmark • Business Advisor • Tieto Corporation • +46702754829 • johan.lofmark@tieto.com Continue the conversation on tieto.com/blogs and @TietoFS Slides will be made available on slideshare.net/TietoCorporation

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