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Questions on the long journey to the Fintech future at large



Summarizing milestones - my own experience mostly based on Fintech in Finland. (Union Bank of Finland>Merita Bank>MeritaNordbanken>Nordea Bank, EU Expert Groups and Real Time Economy Program, Tieto, MyData etc):


1950s -

Strong emphasis on payment standardization and four corner models > competition instead of hub with monopoly. Real time payments between accounts in same bank early feature. Creditor Reference was introduced in the 70s (ISO20022 in 2016).



Online real time ATM (MiniUBF). Later bank-common network.  Domestic Debit cards introduced – leading to lowest cash in circulation/GDP.



Why should enterprises have to transport punch cards and magnetic tapes to the bank?

TeleUBF launched (customer terminal for file transfer).



Can push-button telephones be used for payments? 

Home-banking with onetime passwords introduced.



Why not PC? 

Home- and SME PC-banking introduced (HomeUBF later branded Solo)



All homes do not have PCs and modems. Why not allow employees to use workplace computers for e-banking?

Work-place banking introduced. Key for taking e-banking usage to 500 000 users ( 20% of eligible) online before Internet.



Why cannot all service be in e-banking?

Equity trading added to Home-banking. Later a long range - for private and corporate customers.



- Why can the Solo e-bank not have a back door – where customers step out strongly identified into third party services?

 Doable as KYC was in law already and log-on tool used two factor and on time code (OTC). E-id services introduced. Now used over 100m times a year.

- Why are payment receipts needed when account statements have the same data?

Account-statement-as-receipt for automated accounting introduced (no receipts needed).



Why not Mobile?

Payments with voice synteziser and SMS balance reporting introduced.



Why is it not possible to pay real time from account in online-shopping?

E-commerce real time e-payment introduced – based on invoice payment solution.



- Why does loan agreements have to be signed on paper?

E-Signing (with OTC) introduced.

- If you can sign a loan with bank codes – why not a telephone contract?

E-signing service introduced.  Naturally legal and binding – also in employee role.

- Is it fair to load customers down with having to key in payment details- especially very long creditor reference number series?  

Consumer one-click-to-pay e-Invoicing introduced.



- If  you can make domestic payments from your home computer – why not foreign payments?  Foreign payments introduced (10 times lower fees – and free of charge with SEPA).

- Internet in your pocket?

E-banking went WAP.



- Why do we have to distribute salary specifications on paper?

E-salary – just like e-invoicing – introduced (salary statement clickable from credit to e-banking account).

- Should mobile payments not be globally standardized – proximity and remote?

 Mobey Forum established with Nokia, Visa, Ericsson, Motorola, leading global banks. Against walled gardens: Any phone, any bank, any operator model. Mobey still going strong.



Why not insurance in e-Banking?

 General e-Insurance launched. 



How can we help enterprises to cut costs by automating payment processes?

B2B e-invoicing 4-corner ecosystem introduced.  Cost saving potential in Finland estimated to 3bn€ by Federation of Industries, Municipal Association and State Treasury. Started to feel really important.



Should e-invoicing not be done for the Single Market? 

Real Time Economy (RTE) program launched.  Full SEPA – payments & e-invoicing first target. Direct debit part of e-Invoicing. Not quite there yet..



- Should not entire value chain be addressed?  

RTE – Full Value Chain. (FVC) phase started. Upstream from e-Order to e-Invoice to automated payment.

- What can we do for the Single Market?

Chairing EC Expert Group on e-Invoicing.



How can e-Invoicing automate accounting? 

RTE – Fully Integrated Accounting (FIA) phase started. Downstream from e-invoice payment. Unified Reporting Code created.  Accounting references and ISO20022 standard for e-Invoicing.



Should XBRL not be the European standard and VAT reported automatically?

RTE FIA2 started.  More to do.



How could major administrative burden for enterprises – salary, social security and tax reporting and payments be lightened?  

RTE . Fully Integrated Payroll (FIP) started.  Tax taking over – heading for real time national income register and real time taxation in 2019.



Can SME administrative burden be cut in half?

RTE SME50 started.  Yes – together with cutting red tape. Still work to do – but SMEs should work for it themselves also.



How can e-invoice notifications be used to approve payment?  

Nordea press-A SMS launched



How could paper receipts from POS be made structured – to automate accounting?  RTE Taru program started.



Should unlisted shares be digitalised and stored in CSDs? Is DLT ripe for trading?

First evaluations started.




- How can XBRL be implemented in PSD2 model data storage? Can SME model also be used for private expense follow-up?

RTE Taltio program started

- How can automated real time XBRL-accounting (enabled by e-Invoicing, e-Receipts, digital unlisted shares, ISO20022 account statements) be used for automated credit processes and risk evaluation?

Evalution started.

- Is MyData the right approach to combine industry needs with digital human rights? The key to the Data-driven economy?  Should also corporate MyData be included?

Yes. First MyData Conference organised in Helsinki.  DLT technology and Sovrin show good promise



- MyData Global Network launched.

- What was one of the most valuable 100 year birthday presents for Finland?

100 million transactions in banking sector’s e-Id service

- Should a Real Time Economy program for Europe be started?

Yes – as soon as possible. The Nordic-Baltica area can act as laboratories. Structured financial MyData critically important element in many contexts.

- Can merchants, data service providers and banks find common ground for e-Receipt?

Yes. E-Invoice standard using card payment e-Receipt prototype ready and tested. Good progress in 2018 for generic e-Receipt in RTEco program.

- How can C2C payments be made real time x-banks? 

- SIIRTO-C2C service launched. Fast take-up. Also used for salary payments.



Should a MyData program for Europe be started?

Yes. Preparations under way.



MyData Conference in Helsinki (August 29-31)










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