Design Challenges

An opportunity to change the world of Banking

Aarhus University & Danske Bank

Presenters
Vivian Stensgaard
Business Analyst
Danske Bank

Jeppe Thastum
Business Analyst
Danske Bank

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Danske Bank has a strong platform as a
Nordic universal bank with 3.4 million
customers
Danske Bank market share2

Facts
3.4 million customers
2.2 million active Internet customers
Finland
280 branches1
Norway 10%
15 countries Sweden
6%
19,400 full-time employees 5% 7%
Estonia
Latvia
1 IT platform for the entire Group Northern 2%
Ireland 26%

21% Denmark 6% Lithuania

Business units
Personal Banking
Business Banking
Corporates & Institutions
Wealth Management

1.
Excluding agricultural centres in Denmark, 2. Market share by lending
Source: Danske Bank Fact Book Q2 2016

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 - Development Center Aarhus

Cards
- We serve over 20.000 card customer
experiences in 15 minutes in peak
- All cards issued by Danske Bank put in one
straight line goes around the earth 6.3 times
Corporate Services and Channels
- 6000 online logins each hour via the web
- 10m docs digitalised saving money and
making our world greener
- 7.200.000 collections made by more than
11.000 different creditors
Mobile Ecosystem
- 3 mio users, 1 mio unique users in 5 days
- 3 bDKK in transactions (Volume) in a month
- 67% of all transaction in DSB app comes from
MobilePay
eBanking
- We build the future for web and mobile
- We embrace modern cloud-based tech
- Everything happens in agile cross-skilled
teams
 - Development Center Aarhus

Back and front Office IT

- Software supporting trades at 363 exchanges
across 67 countries
- Accounts where 2.000bDKK passes on a daily
basis - equaling DK yearly BNP

- eBus Security
- We secure new digital offerings on browser,
mobile and tablet
- We serve more than 10.000 authentications
per minute
- We create secure & encrypted communication
channels internally and externally
- We protect our customers against phishing,
malware and other forms of cybercrime
Cash Management
- 3.3 mill tax returns on top of daily load (The
Danish Government also have a bank us)
- 50% of the Danish money flow is going through
our systems - 200.000.000 DKK every minute
24/7
- Awarded Best Solution for Corporates 2 years
in a row by Prospera
Why are we here?

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Three Design Challenges

The future of payments

The economy experience

The social economy

The very short story

Roman gold coin

Early banking activity in
Approx. 300 BC
the 4th millennia B.C.

Italian counting house.

14th century
Banks reputation in society

Christ expulses money changers

(Caravaggio, 1610) Bankers in Hell (Canto XVII)
(Divine Comedy Dante, 1321)

Occupy Wall street, 2011

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What do Banks do?
1. Banks are where people can
safely deposit their savings

2. Banks are largely responsible for

the payments system

3. Banks issue loans to both people

and companies

4. Assist in complex financing

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Banks in society
1. Without banks we would have to pay for everything with cash

2. Without banks as a go-between, savers and borrowers would have to

find each other personally.

3. Banks borrow short-term but lend long-term and manage the risk
associated

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Banking business basic business model

Retail banks makes profit from:

Interest rate on loans
Fees related to service and products

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Traditional Banking

Presence Banks exist physically for serving the customers

Time It consumes a lot of time as customers have to visit banks to carry out bank transactions like
checking bank balances, transferring money from one account to another.

Accessibility People have to visit banks only during the working hours.

Security Physical threats only

Finance Control Based on physical artifacts

Cost The cost incurred by traditional banks includes a lot of operating and fixed costs.

Customer Service Customers can have face to face contact in traditional banking.
Banking in 2017

Presence The footprint of banks are disappearing

Time Banking services are (almost) instant and independent of opening hours
Accessibility Customers have access 24/7

Security Physical threats has been replaced with cyber threats

Finance Control Based on digital interfaces

Cost Banks are far more effective today due to digitalization but still room for improvement

Customer Service Face to face service is replaced by digital solutions and call centers
Pressure

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Design challenge #1: The future of payments 1/2

The future of payments is technology driven

Internet of Things

Biometrics

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Design challenge #1: The future of payments 2/2

Mobile based solutions Other form factors

OEM Pays Issuer and retail

wallets
Barclay Cards launched Bpay in
2014 and has expanded product
range and partners since
(Topshop, Modaine, Garmin, Tovi
Sorga)

Giesecke & Devrient

(G&D) is the provider
of the first contactless
payment watch in
China, Bellamy, by
Swatch.
Launched Nov., 2015

NFC Ring- launched

generation Ring at the
2016 Rio Olympics
one that can make
payments using a
debit, credit, or any
other card.
Design challenge #2: The economy experience 1/2

Making private economy present and comprehensible in peoples everyday lives

How do I spend my money?

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Design challenge #2: The economy experience 2/2

Savings

Children and economy

Pocket money Financial literacy

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Design challenge #3: The social economy 1/2

Sharing economy
with strangers: Cars, grocery shopping communities

with family and friends: Restaurant bills, events, holidays

Crowd funding
Connecting entrepeneurs with (small scale) investors
Next levels of crowd funding
How can a bank enter this area?

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Design challenge #3: The social economy 2/2

Charity

Loyalty

Co-branding. E.g. payment cards

Cooperation with external loyalty solution providers

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Contacts
Jeppe Thastum THA@danskebank.dk

Vivian Stensgaard VSTE@danskebank.dk