Efficient e Government Through Mass Solutions Provided by Banks Nordic lessions. Erkki Poutiainen 14 September 2006

Transcription

1 Efficient e Government Through Mass Solutions Provided by Banks Nordic lessions Erkki Poutiainen 14 September 2006

2 Vision Efficiency in The Networked Economy 1. The framework the transition in the economy to networked operation model (companies, public sector, citizens). 2. New "Business Models (and Processes) for the Networked Economy" 3. More than two partners Standards instead of proprietory models lead to more economic software to parties 4. Mass market is the only acceptable goal timely and economic implementation not possible to achieve without re using existing infrastructures. 5. Bank created mass market services offer well tested platform to be reused in the networked business 1. E Identification 2. Real time payments 3. Document messaging (e invoices, orders, salary slips etc...) 2

3 Public Sector Analogies to Industry Consolidation Produce the same value with less people or more value with same number of people > automation & cost efficiency Need to re define core services focus on essential Re think procurement Re think distribution Etc... Does this sound familiar? How to make this happen? HAVE A LOOK ON A STORY IN THE FINANCIAL INDUSTRY 3

4 Finland National banking market features Bank market consolidation from 1980s: resulting to 3 main players and a group of smaller (incl. other Nordic ) => 10 members in Finnish Bankers Association 2006 Banking crisis in 90 s resulted to very heavy consolidation and cost cutting process: Bank staff cut down to 45 % between 1990 and 1999 Electronic self services have been one of the most important enablers of the change and also the costefficiency driver 4

5 The base: electronic banking Business Public sector 2006: Nordea: > 4m e customers in Nordics Finland: > 3 m e customers in total Service Banks Entreprenaurs Private 2006: Nordea: > 300m e instructions in Nordics All this frees human labour to other areas like advisory services 5

6 The age of omnipresent electronic value chains Business Business Public sector Public sector Service Service Banks Entrepreneurs Entrepreneurs Private Private 6

7 Building e Business in Financial Services This is the basis the e habit. For further progress we need more elements: Open solutions, standards and cooperation and innovation by re use of infrastructure E ID Online Messaging File Transfers Electronic banking the ground The bank 7

8 Building E Business in 3rd Party Services Exploit the opportunity of service distribution over the internet Reach millions of authenticated customers from day one 3rd Party authentication services (E ID) E ID Online Messaging File Transfers Electronic banking the ground Public sector The bank 8

9 Building E Business in 3rd Party Services Exploit the opportunity of service distribution over the internet And collect charges real time Web order & pay e payments (Online mess.) 3rd Party authentication services (E ID) E ID Online Messaging File Transfers Electronic banking the ground Public sector The bank 9

10 Building E Business in 3rd Party Services Exchange of documents order, e invoice, status... (File transfers, messages) Web order & pay e payments (Online mess.) Electronic Invoicing Get rid of paper, traditional mailing and automate document processing 3rd Party authentication services (E ID) E ID Online Messaging File Transfers Electronic banking the ground Public sector The bank 10

11 European Central Bank Support: Electronic Invoicing "For benchmarks we only need to look at the Nordic countries, where the e readiness is most developed in Europe and where e invoicing is being implemented with the support of public authorities. Your SEPA project will make you fit for the future if your vision incorporates this kind of ambitious benchmarks to introduce new competitive services." Gertrude Tumpel Gugerel, Member of Executive Board,in speech to European Payment Council 11

12 Example of the Nordic e invoice model Sending invoices Invoicing Netbank customer E INVOICE House bank Other bank File service customer Operator Operator Non E customer Payments 12

13 Re using the payment channel offers e invoicing, presentment, automation and invoice finance Seller E bank Payment Advice /Receipt Reconciliation Bank A Invoice/&DD Order Order confirmation Invoice finance Payment infrastructure Interbank networks Buyer E bank DD mandate Automated payment order single/bulk Invoice/ Invoice alarm/ Payment proposal Bank B 13 Joint Nordic e Invoice e project and European interest (EU Commission, CAST, EBA) bring this on to international level

14 Banks can make transition to e invoicing: 1. Easier Customers use the same interfaces as in traditional payment traffic Build on established e banking habit and trust. 2. Cheaper Reusing existing infrastructure for payments, identification, signature, file service communication etc 3. Secure Banks have invested in strong security and are part of defense against money laundering and fake invoicing 4. Faster Existing customer base Sales power to recruite corporate massmarket to e invoicing 14

15 Senders Receivers TOP TOP TOP TOP SME Banking network SME Entrepreneurs Entrepreneurs 15

16 Nordic e invoice Planned deliveries Scheme rulebook Roles and responsibilities Common e invoice format and implementation guidelines Governance structure Cross border pilots 16

17 2005 6: Joint Nordic Electronic Invoicing Initiative Just like payments Savings Senders m?? Receivers m??? What can we do for Europe? 8% of EU GDP. Total EU GDP Savings Senders 2.500m?? Receivers m? 17

18 Nordic approaches... Plans and actions taken in all four Nordic countries Danish government outlawed paper invoices from March 2005 Swedish public sector promotes electronic invoicing both munipalities and central government offices regulation under concideration Norwegian public sector plans to utilize country wide BankID Finnish government building on open standards adopted in the private sector and takes the volontary approach. E channel is elementary part of designing procurement and service processes 18

19 Thank you! 19