Mind the EU directive: What does the regulation and format change mean to Nor...
Rte and e id - berlin
1.
Real
Time
Economy
and
E-‐id
BERLIN
17-‐18.2.2014
Bo
Harald
2. Real
Time
Economy
–
a
new
paradigm
1.
2.
3.
4.
5.
6.
What
are
Extended
Payments
Services
How
do
these
lead
to
a
Real
Time
Economy
Why
important
for
Society
at
Large
What
are
E-‐ID
services
Why
important
for
Society
at
Large
Conclusion
3. 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.
4. 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..
5. The
base
is
structured
e-‐invoicing
(NOT
PDF-‐based)
–
fast
migraGon
needed.
6. 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)
7. StandardizaGon
breakthrough
in
extended
payments
Coming:
ISO20022 for factoring
ISO 20022 Tax Invoice
ISO 20022 e-order
20022 e-invoice
20022/11649 creditor reference
Invoice
Seller
Invoice
Biller
Service
Provider
Invoice
Buyer
Service
Provider
Buyer
20022 payment
20022 XML
account statement
Biller’s
Bank
Payment
Infrastructure
7
Buyer’s
Bank
20022 XML
account statement
2010-04-07
8. EC
Expert
Group
on
e-‐Invoicing
Crystal
clear
mindset:
Paper
invoices
have
NO
future
in
EU
8
2010-‐11-‐21
9. 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
10. Next
BIG
thing
–
Data
ExtracGon
Seller
Invoice file
E-Invoice file (any format)
Operator
Extracting
data
Account
statement 3.0
> Real Time
accounting
Real Time Cash
flow forecasts
Real Time
Invoice
financing
Buyer1
Mail
Domestic VAT
EU - VAT
Tax inspection
Intrastat
Forecasting
E-mail (PDF)
Buyer2
Buyer3
12. 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
13. 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
14. 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
15. RTE
–
NaGonal
Co-‐InnovaGon
program
Full
SEPA
FVC
FIA1
FIA2
SME50
2006
2008
2009
2010
2012
Full
SEPA
(Full
Single
European
Payment
area)
-‐ SEPA
payments
-‐ E-‐invoicing
FVC
(Full
Value
Chain)
-‐
Harmonizing
value
chain
development
FIA
1
FIA
2
-‐
E-‐accounIng
reference
(IliöinIviite)
-‐
Standard
for
Electronic
Financial
ReporIng
(
www.raportoinIkood
isto.fi
)
-‐ Global
e-‐invoicing
standard
ISO20022
-‐ European
e-‐
invoicing
work
-‐
Electronic
Financial
Statement
and
XBRL
-‐ Fully
Integrated
Payroll
(FIP):
Payroll
reporIng
codes
and
pracIces
-‐
Real-‐Time
VAT
-‐ European
e-‐
invoicing
work
(
Fully
Integrated
AccounIng
1)
1.1.2009-‐30.6.2010
(Fully
Integrated
AccounIng
2)
1.8.2010-‐30.12.201
1
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
16. 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
17. 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
18. 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
19. 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
20. simple insight
….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
21. Innovation ladder example from
banking
High volume service
improvements
8. Mobile payment
approvals
7. Extract VAT data from einvoice > automated
reporting
6. Integrate e-invoice with
account statement >
automated accounting
5. Receive e-invoice for 1click or automated
payment
4. Send e-invoice – just like a
payment
2.e-banking credentials
connecting 3rd parties
3. Bill payment habit > ecommerce payment
Big productivity improvements
1. e-banking usage
21
2006-03-23
2010-11-21
22. 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.
23. 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
25. Banks & insurance
Pankin asiakas Pankin yritys-asiakas
Utilities
Sähköasiakas
Sähkö yritysasiakas
Same familiar e-tools - embedded
Often used and trusted e-tools
for e-id, e-signatures, e-payments,
payments-integrated e-invoicing
Mr. Same Guy
Same familiar e-tools..
Terveyskeskusasiakas
Public sector
Same familiar e-tools - embedded
Same tools
across:
- Roles and
- Services
Operaattoriasiakas Oprin yritysasiakas
Telecom
27. 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..
28. 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
29. 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.
30. Start
early
–
let
mature
–
implement
gradually
“Any hype will do”
Early start: “Explorer”
Late (re)start: “Panicky follower”
“ICE AGE”
2006-03-23
“ICE AGE”
Page 30
31. Should
be
remembered
It
is
not
DEMAND
that
creates
SUPPLY
It
is
the
other
way
around
Henry
Ford
32. “Do
not
go
where
the
puck
is
>
go
where
it
is
going!”
Wayne Gretzky
32
2010-11-21
33. The future is not planned
nor prognosed
It is created !
Video: http://www.youtube.com/watch?
v=Kb3q2viAbbk&feature=youtu.be
Thank you
haraldbo10@gmail.com,
http://boharald.blogspot.com
33
