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Investor conferenceSophia Wikander, Head of Business Innovation
22.5.2018
Areas driving digitalization
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CompetitionChanged customer
behaviorNew TechnologyRegulation
Examples of regulations that are impacting the financial industry
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PSD2Payment Service Directive 2
GDPRGeneral Data Protection Regulation
Changing landscape impacting the industry – substantial investments
Q2’17, investment in fintech companies in Europe hit
2.0B$ across 90 deals
In Q2’17, global investment in fintech
companies hit 8.4B$ across 293 deals
Sources: CB Insight, July 2017 & KPMG International Aug 2017
The Fintech 250 raised nearly $32B across 766 deals
since 2013
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Leaders of an industry that’s being disrupted will be a mix of incumbents that move
aggressively to adopt new technologies, and some new entrants
BigTech’s
Neobanks
FinTech’s
The competition Areas of disruption
• Accounts
• Payments
• Lighter and non-traditional
investments
• Consumer finance & funding
• Proprietary payment schemes
• Data crunching and analytics
• Cards
Success factors
• Removal of friction from the customer journey
• Lower cost
• Better price
• New tech e.g. AI and robotics
• Cloud computing and scale
• User amercement in proprietary ecosystems
• Social media ownership and dominance
Characteristics
• Faster
• More innovative
• Different culture
• Less regulated
• Bigger
• Ecosystem provision
• Hardware
What about revenue?
Loss• A proportion of the X and Y generation will feel less willing
to adopt to old habits of finance
• Fast momentum in entrant survivors will have a piece of
the pie for good
Retention• Proactive incumbent banks will be able to retain customers by
being able to support capital intense financial services
• Whole sale customers looking for regional/global support and an
A to Z product offering
What stands in their way of total dominance?
• Capital firepower • Millions of incumbent customers • Awakening amongst leaders of the incumbents • Trust
• Local services offering
New• By adopting to new technology, revamping/replace
legacy and proactively engage in partnerships,
incumbent banks will be able to meet the
expectations in its existing but also new customers
• The importance of central players in the financial
ecosystem of tomorrow is playing in favor of
strong incumbent banks
• Revenue will also come from increased interaction
between financial participants i.e. some FinTech
competitors will also be customers of banks
How is Nordea adapting to the
transformation?
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Open Banking Portal Fintech Collaboration
2000+ third parties in portal
Production release in pilot mode
High quality portal and APIs
Active presence in community
Having a proactive approach through Open Banking
Increased focus on collaboration
Going beyond the PSD2
We place focus on being active in the
fintech and start-up communities
through events and social media,
taking an outside-in approach to our
development.
We believe that collaborating and co-
creating with third parties allows us to
offer the best possible services for our
customers.
2000+ third party developers have now
joined Nordea’s Open Banking portal.
Rewarded as top digital innovation
2017 and 2018*, our Open Banking
portal and APIs have received high
praise also from the pilot programme
participants. We are continuously
improving the developer portal and
building on our API offerings.
First APIs for piloting with real customer
data for Finnish household accounts
were launched in end of 2017, Sweden
will follow in the summer of 2018. We
intend to provide additional value adding
premium APIs during 2018, which will
accelerate innovation in the industry.
We look to providing additional value
adding premium APIs during 2018,
which will accelerate innovation in the
industry.
* Banking Technology Award 2017 and Retail Banking Award 2018
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Utilising a bank perspective on the Blockchain technology - Multi-stakeholder
processes as decentralization candidates
Cross-border Payments
Trade and Supply Chain Finance
KYC and Digital Identity
Consent Management
Cash on Ledger
Real-estate trading
we.trade: Adding trust to SME trade in Europe
A consortium of 9 banks across Europe– Joint Venture
– Effective governance
– Cutting edge technology
A platform that– Allows SME customers quick, easy paperless transactions for trade finance
– Automates fulfillment of end-to-end settlement with full KYC
– Seamlessly connects the entire trade ecosystem
Key features– Marketplace for searching trades
– Smart contract based automated settlement for trade transactions
– Social scoring
– Open architecture: integration ready
– Shipment tracking (where supported)
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Nordea joins forces to offer a vide spread of payment solutions in the Nordics
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Cards & Mobile Payments
• NFC
• Apple Pay/Samsung Pay
• Tokenization
• Wearables & P2P
E-commerce
• E-payments
• Consumer finance
• Business finance
• Nordea Connect
12 million active mobile paying
consumers in the Nordics
+6 mio users
+2,7 mio users
+3,8 mio users
+450.000 users
Questions?
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