eFaktura

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eFaktura

• eFaktura- Norwegian EBPP solution

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Establishing a successful inter-bank EBPP
solution the Norwegian "eFaktura" project

• Agenda
• About Norway, BBS and banking services in Norway
• eFaktura B2C development
• Value network and infrastructure presentation
• Status and trends
• Growth factors
• Brand building and sales organisation
• Outlook

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Some key figures on Norway
About Norway, BBS and banking services in Norway

• Population 4,55 mill.
• Number of banks 144
• Bank offices 1.348
• Bank accounts 12,5 mill
• PSTN/ISDN telephones 3,0 mill
• Mobile telephones 4,0 mill
• Internet connections 1,6 mill
• Internet bank users 2.1 mill
• Cabel TV 0,9 mill

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About BBS
About Norway, BBS and banking services in Norway

• BBS is a leading provider of clearing services
  to Norwegian banks
• The business is built around 4 product areas
• Card services
• Giro and bill payment services (including EBPP)
  and Information services
• Interbank services
• Trusted services
• The company is owned by the Norwegian banks

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Banking services in Norway
About Norway, BBS and banking services in Norway

• Population of 3,5 million above 18 years
• Everybody has a bank account
• Currently around 2.1 million internet bank users
  
• Debit cards are predominant
• over 90 of all card use
• Insignificant use of checks (0,5)
• Fraud related to payments and use of cards is
  insignificant
• Bankers associations have strong positions and
  support
• History of high degree of self regulation and
  cooperation within the banking industry
• Businesses already have electronic communication
  with their banks, with integration to legacy
  systems

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eFaktura B2C development
E-billing B2C in Norway

• Market
• One solution, eFaktura (operated by BBS), which
  nearly all banks are offering to their customers.
  
• Solution
• Bills presented through Internet banks,
  independent on the billers selection of bank or
  selection of bank for the private customer
  (everybody to everybody). Easy to add new
  services offered to billers.
• Business model
• The banks enter into a contract with billers
  and/or bill receivers
• Thin model BBS is the only consolidator and
  BBS has an agreement with all banks
• Service providers and banks delivers value added
  services to billers and banks to their private
  customers.

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The strategy
eFaktura B2C development

• Initially establish a solution for electronic
  bill presentment and payment towards the B2C
  segment
• all-to-all bank neutral solution
• bill presentment in the internet bank
• integration with existing payment solutions
• enhance interactive communication between Biller
  and his customer
• co-operation between banks in order to ensure
  critical mass
• Further development might include B2B and other
  documents

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Value network E-billing B2C
Value network and infrastructure presentation

• Partners help billers with eFaktura integration
• Integration partners
• Tailor-made integration
• Off-the-shelf solutions for chosen segments
• ERP software vendors
• Off-the-shelf solutions for existing ERP
  software
• Bill Service Providers
• Bill detail presentation
• Add-on services

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Infrastructure e-billing B2C
Value network and infrastructure presentation
BSP
Euronova
Biller A
Bill receiver A
Netbank 1
BBS
EDB IT drift
Biller B
Bill receiver B
Netbank 2
Consolidator
Enita
Biller C
Bill receiver C
Netbank 3
Payment request Agreements
Ergo Ephorma
Biller D
Bill receiver D
Netbank 4
BBS
Biller E
Bill receiver E
Netbank 5
e-billing Hotels
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Status and trends

• Bills
• - Totally 19 million bills since
• we started in 2001
• 9,4 million bills in 2006
• _ 350 billers ( proximately 80 in pipeline)
• Agreements
• Currently over 2 150 000 agreements between
  billers and end users
• Nearly 700 000 unique users, nearly 30 of all
  net bank users
• Other
• All net banks on solution
• ERP support representing 80 of companies with
  modern ERP systems installed

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The adaption of eFaktura
Status and trends
Late comers
Late majority
Eearly majority
Today nearly 30 percent of all Internet bank
users use eFaktura
Eearly users
Innovators
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Success factors
Growth factors

• Value network / business model established
• Growth facors
• User incentives
• Enrolment capturing
• Market approach
• Brand building
• Sales organisation
• Campaigns

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User Incentive from billers
Growth factors
2,50/month incentive introduced in 2002, this
biller has currently 25-30 of their customers
using eFaktura

• Different models from billers
• Fixed deduction from bill for EBPP customers
• eCustomer-concept covering all electronic
  communication with customers
• No plan to implement incentive models in Net
  banks

Enrolments per month
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Enrolment capturing
Growth factors
Enrolment capturing gives a 8 to 30 times
increase in enrolments per day for a net banks -
overnight

• Enrolment suggestion in the Internet banks
• When a user pays a bill from an EBPP biller
  manually
• From payment history
• One-click enrolment
• No need to enter user ID or EBPP reference

Enrolments per month
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Supporting the brand and the banks
Brand building and sales organisation

• Brand building
• BBS responsible for brand building /strategy and
  mass communication efforts
• Providing a common
• Communication strategy
• Brand strategy
• Visual identity
• Banks, billers and BBS run parallel marketing
• BBS develops common marketing material

• Sales support from BBS
• Supporting banks in sale process towards new
  billers
• Supporting banks in helping billers marketing
  towards end users
• Supporting banks in improving net bank
  functionality

Brand recognition in Norway 80 percent
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Business users campaigns marketing mix
National mass communication (BBS)
Industry oriented magazines Newspapers Internet Pu
blic Relations
From partners (Direct comm.)
From banks (Direct comm.)
One to one sales Direct mail Advertising Promotion
on websites Customer magazines
One to one sales Seminars Direct mail Information
on web-sites Brochures Sales competitions
End user (business)
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Marketing mix
Brand building and sales organization
National mass communication from BBS
TV Radio Internet Public relations
From billers
From banks
Message on paper bills Bill attachment Media
advertisement Internet banners Information on
home page Customer magazines Incentives Local
public relations
Attachment to statement of account Intensive
enrolment capturing Information in the Internet
bank Information on other bank portals Order
form Information in branches Customer
magazines Local public relations
End user
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Communication strategy Focusing on what we know
is most motivating

• Easier and faster way to pay (just one click)
• Time saving
• You dont have to type the billing details
• Receive the electronic bills into the Internet
  bank istead of paper bills in the ordinary
  mailbox
• Curious on new technology, trying something new
• More control

Communication focus
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Dont expect people to run and buy the service

• Therefore we tell people to say yes to
  eFaktura, next time they visit their Internet
  bank.
• Enrolment capturing
• (The customers have a higher acceptanse of
  messages right after bill payment).

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Communication strategyFocusing on what we know
is most motivating

• Cost-effectiveness, focusing on what they save
  each year

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Marketing/advertising PMOur solution to create
attention and desire of action to a low interest
service like eFaktura

• Make a stop-effect, do the unexpected
• Persuade the customer when he/she is near the
  point of action (Internet, paper-bills, radio)
• Continuous brand exposure.
• Dominate the chosen media, to not compete with
  advertisements from high interest
  products/services.
• Make the press to tell about it

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Stop effect An invoice is not very exciting
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Until you start playing with it
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Advertising materialBrand web site
(www.efaktura.no)
Linked to every Norwegian Banks and billers who
offers eFaktura
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Exposure on the web
Partner
Web
Advertising
Net bank
Biller
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Increasing knowledge eFaktura
What kind of payment solutions for regulare bills
du you know? (n371)
Målgruppe 25-50 år og nettbankbruker
Total knowledge
94
89
86
82
80
76
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Outlook and further product development
Outlook

• Product development
• Distribution of other documents with eFaktura
• Secure customer dialogue from the eFaktura bill
  ok developed 2006
• B2B
• Biller-centred enrolment
• Increased CRM and customer dialogue focus
• Incentive solutions
• One-stop-shopping paper/electronic services

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