Friday, August 11, 2006

work1. Remember to network - examples from e-banking

Starting to go deeper into the list below, I recall the earliest networking experience from e-banking - dating back to 1984 (private e-banking was launched in 1982 - corporate in 1979 in Union Bank of Finland - now Nordea Bank). In those days PCs were not that widely in use at home and modems even less common. So the bank agreed with employers that it is in everybody's interest (time saved) when employees who use PCs at work (usually linked to external telenetworks) could use them also for their private e-banking. This networking led to a very much faster uptake and customer value than would otherwise have been possible and created an early e-habit and e-trust platform that now is the base for a worldleading position for example in the public sector (reuse of e-banking tools).

The next networking example from the e-banking history came 1992 when customers could log in to the bank and continue to all major insurance companies - big savings for them as they did not need to build own strong identification. This meant that banking became embedded in insurance services and vice versa.

This reuse of bank e-id (also for signing third party contracts as is the case with loan agreements in the banks' services) took a big step forward when the Finnish Ministry of Finance in 2002 recommended the use or bank-id for the public sector as an equally strong method as the state issued PKI smart card (which has failed to gain usage). Estonia in 2005 is an even more striking example of what citizens prefer: 363 000 Estonians used e-banking id (800 000 have them) when filing tax return - 904 used the state issued smart card (1 000 000 distributed). This use of bank-id has probably taken Estonia's tax service and public sector at large to a global lead position.

Accenture's High Performance in Government report (p35 figure7) shows the results of the co-operation with the banking sector - Finnish citizens are very clear global leaders in eGovernment use and eGovernment enthusiasm. Of course it is easy to understand - what could be more conveniant than reuse of bank-id which is so often used and familiar (one-time codes since 1982)? True economy of repetition for the citizen, economy of reuse for the government (massive investment if all citizens would have to be equipped with smart cards and card readers - and a waste as single sector tools will not be used - and ties to one PC, does not work on mobiles etc) and economy of scope and scale for all. Accenture did not quite pick this up but cited some for me unknown anonymous press coverage that would have questioned the role of banks - ie questioning networking..

I could list a good number of similar networking examples from e-banking - payments-integrated e-invoicing is the most recent example - the cost saving potential from e-invoicing for EU has been estimated (by EU) to exceed 100bn€ per year - something REAL for Lisbon.

The leading theme is of course to understand how the citizen's practice of handling all aspects of banking can so very naturally become an essential part of his practice in using for example public sector services. Responsible civil servants are of course taking every opportunity to save tax payers' money - but also to make it possible for them to benefit early from e-services without any need to invest in or learn to use new devices. This service of practices is very much connecting to what Oskar states in his Practice Design blog. "This helps companies to bec0me less fragmented in the operations. Customers are very different, whereas practices can in many cases be universal." In this particular case cross-organisations and both for the citizen's private and employee role in a world-leading private-public partnership.

More examples later.


Mark Sorsa-Leslie said...

The networking is taken to the extreme here, with the bank manager available by IM. I think a sign of things to come.

Small Bank Allows Customers to IM Managers

For bank customers too busy to use telephone hot lines or visit a branch
to have their questions answered, a tiny bank in Arlington, Mass., has a
speedy solution: Send an instant message to the local branch manager. At
Leader Bank, with just three locations, customers are given the online
screen names of bankers, and are encouraged to instant message them with

See the Full Story:

BoHarald said...

Good point Mark - now when this has been made convenient enough the conditions for an exponential take-off may all of a sudden be there.