NETS CARD MANAGEMENT SERVICE Modern and cost efficient services

10.9.2014 Sakari Olli, Issuing Business Solutions, Senior manager

MARKET TRENDS

Waves of Innovation Innovation in payments is evolving more toward customer-centricity

Exponential increase of payment methods How to complete against new players?

Physical Online Mobile

2003 2009

2000

2007

2003

2005

1950 1960 1980 2020 1970 1990 2000

Sustainable advantage for 2020

DIFFERENTIATION

ADAPTATION

EFFICIENCY

INNOVATION

AGILITY

OPTIMISATION AND SIMPLIFICATION

Baseline today

Baseline in 2020

Leaders in 2020

SOURCE: ACCENTURE

Innovation in Payments by Banks (% of respondents)

Key Drivers and Barriers

NETS CARD MANAGEMENT SYSTEM SERVICES

Components of Nets Delivery

NETS ISSUING PROCESSING PLATFORM

SMART CARD DATA MANAGEMENT,

CHIP & PIN, CONTACTLESS

FRAUD PREVENTION SYSTEM

TSM/WALLET SOLUTION

CARD MANAGEMENT SYSTEM

PROCESSING CENTERS/

BANK INTERNAL SYSTEMS

INTERNATIONAL CARD SCHEMES

3D-SECURE SOLUTION

PIN-MANAGEMENT SYSTEM

AUTORISATION TRANSACTION

INTERFACES WITH CARD MANUFACTURERS

SUPPORTED BY NETS

Interface Optional component

Better Customer Experience

“How to tailor products and services to individual customer experience to keep customer attention.”

Better personal control to card features and functionality

Contactless payments

Campaigns

Mobility Support for issuer innovations

“Customer behavior analysis, new business model, partners and continuous improvement.”

Big data analysis Partnerships Loyalty Flexible fee engine

New Revenue Streams

MORE OPPORTUNITIES - BETTER BUSINESS Opportunities for new revenues and cost savings

“Superb operations and execution with good quality at a very competitive price.”

Compliance costs in control Fixed price for card scheme and local compliance

Better support for end-to-end processes and value chains

From Web application to invoice archive

Online fraud prevention

Detect fraudulent transactions earlier

One partner for most of the card related services

Simple interface and clear responsibilities

Better time-to-market with an external partner

Bank’s limited development resources

Chance to improve

NETS CMS – CUSTOMER VALUE

Customer Value and Nets Offering

COST EFFICIENCY

TIME TO MARKET

Future proof low risk solution • Compliant services e.g. PCI DSS, Nordic

legislations • Low risk operations • Nets SLA commitment

COMPLIANCE

One platform for all cards • Consolidating card and loan solutions • Instalment and consumer loans • Bigger volume – lower costs • Complex product combinations and rich

functionalities

Integrated card processing solution • Local partner – commitment to customer needs

and development roadmap • Easy differentiation – pricing, features and

functionalities • Easy tailoring – flexible differentiation

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Customer Value and Nets Offering

FLEXIBILITY

IN CONTROL

• Several products under the same contract • Flexible features for card accounts and loans • Self-selected PIN • Multi channel solution enables the cardholder to choose the best

communication channel at any given time

• Customised card features by rule driven pricing enable the cardholder to gain advantages by increasing the basket size

• The cardholder optimise the cash flow by selecting different payment schedules

• The advanced security features (e.g. geographical blocking and online card status) reduce time cardholder is spending on unauthorised transactions and card management

OPTIMISATION