PowerPoint Presentation - Finance Latvia...Most companies in Europe apply for an AISP license or for...

Open Banking – From egosystems to ecosystems

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Spiir

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Vipps

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Payr

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Spiir

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Minna Technologies

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Sbanken

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Danske Bank

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SwedbankNothingNothing

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Nordea

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Minna TechnologiesNothingNothing

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Danske Bank

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Wrapp

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Minna Technologies

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Open Banking is opening up for new ecosystems and more innovation in the financial markets industry

New platforms and ecosystems

are emerging

Partnerships are key for future value creation

PSD2 is accelerating the Open Banking

trend

Open banking will accelerate the

speed of innovation in the financial markets

industry

Danske Bank develop platforms that open up for partnerships and

collaboration

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Our partnership with Spiir gives our customers one view of all their bank accounts in our interface

All your banks at your fingertips

Better overview makes better decisions. All your bank accounts integrated into our mobile bank

13

Subscription management in the mobile bank from Minna Technologies saves both time and money for our customers

14

District is prepared for the possibilities and demands of the future

District is a first steps towards our vision of a platform where financial data connect and turn into insights, providing full financial overview:

• Full overview • Automated workflows• Flexible and scalable • Turning information in to insights

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Experience day to day business banking as it should be

✓ See all your bank accounts across banks

✓ View balances and transactions for each account in real time

✓ Transfer liquidity between your accounts

✓ Export data easily

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A marketplace for easy navigation and discovery of value-adding solutions from both Danske Bank and our partners in the Marketplace

Cu

sto

me

rs

Bydelen markedsplass

Customer interaction with the marketplace

Par

tner

so

luti

on

s

Partner interaction with District

API and Partner Hub

Software Development Kit

API-integrations

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Both ecosystem provider and participant

Accounting applications

Payment solutions

Banks

Danske Bank APIs

and Services

Fintechs

Aggreg-ators

Accounting

Salary and HR

Bankdata

Cards

Financingsolutions

Expense mgmt

Ecosystem participantEcosystem provider

The better the question. The better the answer.

The better the world works.

Open Banking

June 12th 2019

Open Banking has different drivers globally

OPEN

BANKINGEUROPE

Regulatory-driven approach

CHINA

Market-driven approach

US

Market-driven approach

Changes in the regulatory environment are being

discussed

Source: EY Open Banking Survey

An Open Banking world: what characteristics do we see?

Connected and complex data ecosystem

Increased customer control and centricity

Enhanced insight on and for customers

Increased use of digital identity and biometrics

Data as an asset Evolution of the role of a FIShift in customer relationship

ownership model

Increased choice & competition

Open Banking is an ecosystem empowering consumers to integrate digital banking into their everyday lives

Consumers

Traditional banks, products and services

Digital Financial Ecosystem

Powered by APIs

The UK has a head start with PSD2 due to the implementation of Open Banking (January 2018)

1823

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79 83

10

20

30

40

50

60

70

80

0

2

4

6

8

10

AISP and PISP licenses granted in the UK cumulatively AISP and PISP licenses granted in the UK

Distribution of PSD2 licenses in the UK

AISP PISP Both

48 | 58%

3 | 4%

32 | 38%

In the past few months the number of licenses in the rest of Europe has grown, and Sweden has granted the most licenses after UK

0

2

4

6

8

10

12

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► PSD2 licenses granted by regulators other than the UK is growing

steadily the past few months

► Sweden has granted the most PSD2 licenses so far, followed by

France and Belgium

► 15 countries have not granted any PSD2 licenses yet, this

includes for example the Netherlands and Spain

► Most companies in Europe apply for an AISP license or for a

combined AISP and PISP license

► In some countries the PSD2 license application process has only

been opened recently, therefore we expect the number of licenses

in Europe to grow at a higher rate the next few months

AISP and PISP licenses granted in Europe cumulatively

Distribution of PSD2 licenses in Europe

AISP and PISP licenses granted in Europe

Developments in Europe

AISP PISP Both

23 | 40%

9 | 15%

26 | 45%

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The majority of the big Nordic Banks have an open banking strategy, but the functionality is mostly limited to view accounts and transactions

Who? How?Extract of

today’s solutions

External developers (TTP’s)

Open API’s

Back end

Front end

Internal developers

Minna Technologies and Swedbank has launched a service providing Swedbank’s customers with overviews and actionable recommendations (such as cancellations and improvements) on all their subscriptions

Sparebanken Vest, Sparebanken Sogn og Fjordane, Sparebanken 1 or Sbanken customers can seetheir accounts in one place.

Danske Bank and Spiir allows customers to see their bank accounts and transactions through one app.

In Sbanken, customers cansee their outstanding amounton their student loan

What scenarios may unfold? Will new platforms dominate the market?

Ma

rket

siz

e

Nordic universal banks

Local banks

Consumerbanks

Others

Total income

<<<<<<<<

<<<<<<<<

<<

Ma

rket

siz

e

Platforms

Banks

Ma

rket

siz

e

Scenario 1: Status quo Scenario 2: A few platforms will

dominate the market

Scenario 3: Total fragmentation

What will decide?

Speed of innovation Distribution power Trust

Norwegian customers still prefer to deal with banks for their personal finances

Source: Kantar TNS and Finans Norge – Forbruker og Finanstrender 2018

62

40

21

21

8

7

4

3

1

1

1

51

36

34

14

7

4

0

5

1

1

0

0 10 20 30 40 50 60 70

Banks

Public authorities

None of these

Insurers

IT company (Google, Apple, etc.)

Mobile operators (Telenor, Telia etc.)

Travel / Airlines

Power company (Hafslund, Fjordkraft, etc.)

Grocery chains (Rema, Kiwi, Meny etc.)

Real estate brokers

Social Media

Opinion leader Yesteryear consumer

In an Open Banking world, relationship will be the new user interface

Source: Time Magazine 2017

June 12th 2019

Collaboration and simplification -

drivers for success in a digital worldBjørn Skjelbred, Senior Vice President

“We are from the future””Digital Planet 2017

Digital Evolution Index

1 Norway2 Sweden

3 Switzerland

4 Denmark

5 Finland

6 Singapore

7 South Korea

8 UK

9 Hong Kong

10 USA

The 2018 IMD World DigitalDigital competitiveness Ranking

1 USA

2 Singapore

3 Sweden

4 Denmark

5 Switzerland

6 Norway7 Finland

8 Canada

9 Netherlands

10 UK

«The future» is still small and ruggedPopulation: 5,3 millions

90% have a multi purpose eID

90% is non-cash

75% have a mobile wallet

Everybody have a bank account

Most invoices are electronic

The Nordiccollaboration model

“All to all”, not “some to some”

Money transfer

Digital access

Digital signature

Store payments

E-Commerce pay

Information

Bills

Through all

Devices

Through all

Devices

From all

PeopleTo all

People

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The Nordic collaborative models have created the

worlds most successful wallets and ID’sMarket penetration estimates mobile wallets

% users of population 15+

Market penetration electronic ID’s

Estimates

0-19%

>50

%

<50

%

Source: Deloitte

Vipps was the result of banks challenged on multiple fronts

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Increasing competitionChanging consumer behaviour Regulatory change

Free of

charge

In response to market changes, DNB Bank launched a P2P payment service in 2015…

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Transfer using recipients phone

number No need for account

number

Instant transfer from desired payment

source Account based or Visa/Mastercard

Independent

of who you

bank with

New solutions were added to the wallet and the share of fee based transaction increased

39

P2P

CHECK

BALANCE

Overview of balance

on all your accounts

in one place

E-COMPay in one click

online (rather than

keying in card details)

VIPPS

GO

Pick menu items

directly in the

Vipps app

100%

30%

2015 2019

Share of fee based transactions

Fee based transactions Non-fee based transactions

INVOICE

Pay your bills in Vipps (rather

than getting paper invoices)

PERSON TO

BUSINESS

Pay with your

phone (rather than

cash or card)

The growth and adoption of alternative payments methods combined with modern techniques of digital authentification, are expected to further catalyze the growth of mobile payments

In this landscape, banks collaborated to combined mobile payments, ID and payments infrastructure to catalyse the innovation.

41

PAYMENT INFRASTRUCTUREMOBILE WALLET ID INFRASTRUCTURE

Mobile wallet

used by 75%

in Norway

Digital identification

solution used by

90% in Norway

Domestic debit card

scheme used by 90% of

merchants in Norway

+ +

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PUBLIC SECTOR

FINANCIAL SECTOR

AUTENTICATION

DIGITAL SIGNATURES

BUSINESSES

BankID alone been a significant driver for digitization of Norway. A commercially run service functioning across all parts of society

90% of the

Population

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P2P

CHECK

BALANCE

E-COMVIPPS

GO

INVOICE

PERSON TO

BUSINESS

Adding BankID to Vipps we are simplifying and securing both login and check-in, catalyzing innovation on mobile payments

PUBLIC SECTOR

FINANCIAL SECTOR

BUSINESSES

AUTENTICATION

DIGITAL SIGNATURES

E-ID as society critical infrastructure

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Tighter interaction between

Population, governments,

financial and public sector

Efficiency in Health,

Education, agriculture

Digital infrastructure

means more inclusion

Bringing the collaboration model abroad

Telecom = Roaming

Payments = Interoperability

Partnering up to create seamless interoperability across countries

?

?

??

47

In essence we strive to

excite people every day

through world-class

simplification

Source: Deloitte

bjorn.skjelbred@vipps.no+47 90666337

YOUR DIGITAL CFO

SMALL BUSINESSES ARE UNDERSERVICED

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CAPASSA – FULL RANGE OF SERVICES FOR SMALL BUSINESSES

52

ACCOUNTING

PENSION

CONSULTING

BANKS

FINANCIAL

INSURANCE

SMALL

BUSINESSES

DEBT COLLECTION LEASING

53

CAPASSA –

YOUR DIGITAL CFO

FINANCIAL

OVERVIEW &

CONTROL

AGGREGATED

INFORMATION

FINANCIAL

ADVICE

EASY &

INTUITIVE

MARKET PLACE

54

ACCOUNTING

PENSION

CONSULTING

BANKS

FINANCIAL

INSURANCE

DEBT COLLECTION LEASING

PARTNERSHIP PROGRAMS & DASHBOARD

55

FULL OVERVIEW AND CONTROL

SET THE FINANCIAL CRITERIA

RISK REDUCTION

THE CAPASSA INDEX – THE INDUSTRY STANDARD EVALUATING SMALL BUSINESSES

56

THE TARGET MARKET

57

LIMITED

COMPANIES

(AS’)

SME’S

NORWAY

70 000

&

EUROPE

25 MILL

< 20

EMPLOYEES

NOK/YEAR

NORWAY

> 500 MILL

&

EUROPE

> 160 BILL

STRONG AND EXPERIENCED MANAGEMENT TEAM

58

MARIT

WETTERHUS

24 years of experienceCEO of 3 technology

companies Non-Executive Director of 2 listed technology

companies

AAGE

THORSEN

24 years of experienceExtensive experience

working with Financial Institutions

Network, infrastructure & security expert

MAGNUS

KIRKERUD

22 years of experienceExtensive experience

working with Financial Institutions

Security, storage, backup & compute expert

CEO CTO CPO

59Capassa’s Team

SOCIAL NETWORK

60

Voted Capassa as one of the 3 best startups in Norway in 2019

61

Capassa –

Your Digital

CFO

www.Capassa.com