Community

I agree that the e-receipt is the most important signed credential volumevice - and thus the habitcreator for asking for 100ds of other needed credentials. The cost saving on EUlevel for it should be in the 70 bn region from automation - and equally much? from hindering crime and grey economy and using big data via real time automated VAT-reporting. This is why the commission should push the corporate wallet. Should not be difficult to understand..

2004

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.

2006

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..

2008

- 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. Very important report and influence on new VAT-directive (digital signatuter cannot be mandatory).

2009

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.

2010

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

RTE FIA2 started.  More to do. No-brainer to make it mandatory. Task for Nordicsmartgovernment.org

2011

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. Real pension and social security payments in 2020.

2012

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.

2013

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

Nordea press-A SMS launched. Huge success.

2014

How could paper receipts from POS be made structured – to automate accounting?  

RTE Taru program started. Cost saving potential in accounting in Finland 900m€/year. Now key area in RTEco.

1988

Why cannot all service be in e-banking?

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

1992

- 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 one time code (OTC). E-id services introduced. 2017 used 100,9 million times. Estimate for 2019 - 150 million. Public sector services big user.

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

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

1993

Why not Mobile?

Payments with voice synteziser and SMS balance reporting introduced.

1996 

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. Dominating payment method in Finnish e-commerce.

1998

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

E-Signing (with login-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. Direct debit-like standing order added later. No need to use much more expensive and complicated SEPA direct debit. Available of course.

1999

- 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.

Questions on the long journey 

Summarizing milestones - my own experience mostly based on Fintech in Finland and the other Nordics. (Union Bank of Finland>Merita Bank>MeritaNordbanken>Nordea Bank, Mobey Forum, Visa Advisory board,  EU Expert Groups, 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).

1978

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

1979

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

TeleUBF launched (customer terminal for file transfer).

1982

Can push-button telephones be used for payments? 

Home-banking with onetime passwords introduced.

1984

Why not PC? 

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

Could a credit to an corporate account at the Union Bank of Finland London branch automatically launch a real time SWIFT message to the head office TeleUBF netbank in Finland?

First answers were no - then yes - and the UBF Instant Cash service was launched. The head office could also use the account in London.

1985

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.

Strong support for eIDAS2 https://www.youtube.com/watch?v=l8pHUdjKfes 

https://trustoverip.org/why-toip/benefits/

Picture by Evernym. Relates to previous blog - huge numbers of steps to the ladder

Must happen on an even wider scale. Too expensive and needed by very few - even if all customers pay the cost. 

The Why: New dimensions of customer value and Good for Society at Large...

The Why is customer value and good for customers at large. Huge levers for customers: economy of repetition with familiar tools, economy of scope by getting complete service packages (process in stead of isolated "products"), economy of trust (banks have to be trusted and are legislated into this ID role). Huge levers for banks to build on economy of reuse, economy of scale and scope. And massive benefits for society at large - faster progress to data driven economy and intelligent decisioning.