rte and e id - berlin
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TRANSCRIPT
Real Time Economy and E-‐id
BERLIN 17-‐18.2.2014
Bo Harald
Real Time Economy – a new paradigm
1. What are Extended Payments Services
2. How do these lead to a Real Time Economy 3. Why important for Society at Large 4. What are E-‐ID services
5. Why important for Society at Large 6. Conclusion
1. What are extended payments services? (1/2)
1. New era started by creaIng EU EPI (electronic payment iniIator) and including it into e-‐invoices = spliQng invoice received-‐process into approval and automated payment.
2. Next step was for banks was to move to eInvoicing – simple one-‐click approval of payment proposiIon on receiving side and simple e-‐bank key-‐in for SMEs and reuse of payment file services for larger enterprises on the sending side.
3. Same service for consumer e-‐invoicing. 4. Document hotel services and aYachments supported. 5. Any format-‐in and any-‐format out to support global reach.
1. What are extended payments services?(2/2)
6. Data extracGon services = reuse structured e-‐invoice data for mulIple reporIng purposes
7. Automated accounIng – Account Statement 3.0.. 8. Automated cash flow esImates 9. Automated invoice financing 10. Mobile “a” payment approval 11. Focus on payment receiver iniGated payments (self-‐
billing also supports it) – to get full automaIon and Real Time compleIon
Banks do not have to (should not) invest for the above – can use cloud service.. Low integraIon grade – easy..
The base is structured e-‐invoicing (NOT PDF-‐based) – fast migraGon needed.
How to get there – e-‐invoicing
Two key recommendaGons implemented:
-‐ New VAT direcIve – equal treatment and cash based accounIng
-‐ ISO20022 global message standard (UNCEFACT CII v2 based)
Next:
Harmonized and automated VAT-‐reporIng (DG Taxud driving – RTE created ISO20022 Tax Report)
StandardizaGon breakthrough in extended payments
Seller Buyer
Biller’s Bank
Payment Infrastructure
Buyer’s Bank
Biller Service Provider
Buyer Service Provider
Invoice
Invoice Invoice
2010-04-07 7
20022/11649 creditor reference
20022 payment
20022 XML account statement
20022 XML account statement
20022 e-invoice
Coming: ISO20022 for factoring ISO 20022 Tax Invoice ISO 20022 e-order
2010-‐11-‐21 8
Crystal clear mindset: Paper invoices have NO future in EU
EC Expert Group on e-‐Invoicing
Example from globally leading manufacturer of fine paper
United Paper Mills le/er to suppliers:
“Esteemed trading partner, UPM moves to electronic invoice pracIces from 1.7.2009 onwards. In pracIse this means that the company only accepts electronic invoices.
…. From the beginning of 2010 UPM will have to return paper invoices to the senders….”
Model case: NO scanning
Next BIG thing – Data ExtracGon
Seller Buyer1 Invoice file Operator E-Invoice file (any format)
Buyer2 E-mail (PDF)
Buyer3
Extracting data
Domestic VAT
EU - VAT
Tax inspection
Intrastat
Forecasting
Real Time Cash flow forecasts
Account statement 3.0 > Real Time accounting
Real Time Invoice
financing
Real-‐Time VAT
ISO20022
ISO20022
ISO20022
ISO20022
ISO20022 ISO20022
Automated accounGng
1. Especially easy for cash based accounIng – recommended in VAT-‐direcIve – up to 2m€ turnover
2. Simple to implement by adding needed data from e-‐invoice to debit or credit in electronic account statement
3. Standard feature in SME e-‐bank 4. Can be used also for private customers 5. Path to eliminaIng also card payment receipts
2. How does this lead to a Real Time Economy
1. Better Productivity
2. Better Service
3. Better Environment
4. Better Co-innovation
5. Better Jobs
Photo: Sachyn
Real Time Economy
• Real Time – the very nature of Internet – and especially in networked services
• When all is digitalised -‐ anything else than real Ime in service layer is unnatural > this also moves to IT-‐processing
• X-‐ network DigitalizaIon > x-‐network AutomaIon > x-‐network Real Time service > x-‐network Real Time administraIon
• TransacIons start and end in the same moment
RTE – NaGonal Co-‐InnovaGon program
Full SEPA
2006 2008 2009 2010 2012
FVC FIA1 FIA2 SME50
Full SEPA (Full Single European Payment area)
-‐ SEPA payments -‐ E-‐invoicing
FVC (Full Value Chain)
-‐ Harmonizing value chain development
FIA 1 ( Fully Integrated AccounIng 1) 1.1.2009-‐30.6.2010
-‐ E-‐accounIng reference (IliöinIviite) -‐ Standard for Electronic Financial ReporIng (www.raportoinIkoodisto.fi ) -‐ Global e-‐invoicing standard ISO20022 -‐ European e-‐invoicing work
FIA 2 (Fully Integrated AccounIng 2) 1.8.2010-‐30.12.2011
-‐ Electronic Financial Statement and XBRL -‐ Fully Integrated Payroll (FIP): Payroll reporIng codes and pracIces -‐ Real-‐Time VAT -‐ European e-‐invoicing work
SME 50 (’AdministraIve costs in half…’) 2012-‐2013 1. AFA – Automated
Financial AdministraIon
2. FAR – Fully Automated ReporIng
3. ERM – Enterprise Risk MiIgaIon
4. SIM – Sustainability Intelligence Management
SME50 – Overriding MoGvaGon Cu7ng Administra;ve costs in half + …
SME 50 is building on the EC DG Enterprise public sector “red tape” iniGaGve (reduce cost of administraIve burden by 25% by 2012).
SME 50 focuses on soluIons for automaGon of administraGve processes to 1. cut costs (addiIonal 25%), 2. lower risks and 3. improve financing and cash management within the enterprises.
SME 50 automates processes to, 1. save costs, 2. lower risks, 3. improve cash management and 4. collect taxes due for the public sector
1.3.2014 Photo: www.sxc.hu
3. Why important for Society at Large (1/2)
1. E-‐invoicing and payment automaIon: -‐ Enterprises in Finland can save 2,8bn€/year in b2b (Employer’s
AssociaIon) -‐ Municipals can save 150m€/year (Municipals AssociaIon) -‐ State sector can save 150m€/year (State Treasury) -‐ Investment needs are minimal/small
-‐ EU-‐esImate – at least 250bn€/year -‐ EU-‐harmonizaIon – Single Market driver -‐ Cost-‐efficient and efficient grey economy counter-‐
measure -‐ 10m tonnes less CO2
3. Why important for Society at Large (2/2)
2. Next layers:
-‐ PotenIal from VAT-‐reporIng automaIon in Finland – 420m€ (EU 30bn…)
-‐ PotenIal from automaIng SME accounIng in Finland – 200m€ (EU 14bn..)
-‐ Very large cost savings in public sector -‐ Further efficiency gains on other reporIng
-‐ Just tax collecIon
General dilemma
1. The highest performing companies have well developed systems for killing ideas that their customers don't want.
2. As a result, these companies find it very difficult to invest adequate resources in DISRUPTIVE technologies -‐ lower margin soluIons -‐ that their customers don't want –
3. unGl their customers want them. 4. And by then it is too late!
Clayton M. Christensen in The Innovator’s Dilemma
….simple insight - that the only thing scarce in a world of abundance is human attention.”
Less Gme for any one thing... > quest for
clarity, clinical simplicity, holisGc collaboraGve offerings and repeatability
simple insight
21 2010-11-21 2006-03-23
Innovation ladder example from banking
High volume service improvements
Big productivity improvements 1. e-banking usage
2.e-banking credentials connecting 3rd parties 3. Bill payment habit > e-
commerce payment
5. Receive e-invoice for 1-click or automated
payment 4. Send e-invoice – just like a payment
6. Integrate e-invoice with account statement >
automated accounting
7. Extract VAT data from e-invoice > automated
reporting
8. Mobile payment approvals
5. What are e-‐ID services?
1. The public sector and other service providers encourage bank customers use their e-‐bank credenIals when strong e-‐id is needed. 2. Banks provide service to other sectors in 4-‐corner model – and sell e-‐id also to unbanked ciIzens.
3. Banks use e-‐id as loan signature and progressively eliminate all need for paper.
4. Also used for signing documents between 3rd parIes – also in employee role 4. Immediacy important Real Time Economy aspect.
6. Why important for Society at Large?
1. Public sector and many other services need strong e-‐id and e-‐signed commitments and contracts.
2. Bank e-‐ID volumes are typically some 20 Imes higher than all other sectors – together. Does not make sense to create separate tool all over the place..
3. Using ready bank tools saves tax payers’ costs massively and above all brings in ready habit and trust
4. Bank tools have to be and stay strong and anI-‐money laundering legislaIon guarantees aYenIon to idenIfying ciIzens properly in account opening situaIons -‐ anyway
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E-Id used 32,3m times – EU Equivalent would be 2,26 bn times..
Mr. Same Guy
Pankin asiakas Pankin yritys-asiakas Sähköasiakas
Terveyskeskusasiakas Operaattoriasiakas Oprin yritysasiakas
Sähkö yritysasiakas
Often used and trusted e-tools for e-id, e-signatures, e-payments, payments-integrated e-invoicing
Banks & insurance Utilities
Telecom Public sector
Same familiar e-tools - embedded
Same familiar e-tools.. Same familiar e-tools - embedded
Same tools across: - Roles and - Services
The best innovaIon is osen
Reuse of a familiar tool For new purposes
It is all about human behaviour….
o "What I hear, I forget. ! What I see, I remember.
" And what I do, I understand.“
Time to connect..
8. Conclusion
"We tend to overesGmate the effect of a technology in the short run
and
underesGmate the effect in the long run.”
Amara’s law
e-‐invoicing, data extracGon, eID, etc
Only banks can make the mass market breakthrough fast and economical
using:
1. Ready local and global standards (ISO20022) 2. omnipresent net-‐banks as interface,
3. the payment system for transport 4. account statements for automated accounIng
5. data extracIon for automated VAT etc reporIng 6. massively used e-‐bank credenIals for 3rd party strong e-‐id and signatures
7. their massive sales power for MAKING IT HAPPEN.
Page 30 2006-03-23
Start early – let mature – implement gradually
“ICE AGE” “ICE AGE”
“Any hype will do” Early start: “Explorer” Late (re)start: “Panicky follower”
Should be remembered
It is not DEMAND that creates SUPPLY
It is the other way around
Henry Ford
go where it is going!”
“Do not go where the puck is >
2010-11-21 32
Wayne Gretzky
The future is not planned nor prognosed
Thank you [email protected],
http://boharald.blogspot.com
It is created !
Video: http://www.youtube.com/watch?v=Kb3q2viAbbk&feature=youtu.be
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