February 8, 2017

Stay relevant to your customers with Siirto

Waltteri Karhusaari

Head of Financial Services Consulting, Tieto

Stay relevant to your customers and create new business opportunities enabled by Siirto. Waltteri Karhusaari explains what banks have to gain from joining the mobile P2P service, Siirto, in Finland.

Staying relevant to customers is an on-going challenge within banking and financial services. Expectations are continuously rising and mobile solutions and services are not just anticipated, consumers demand them.

The launch of Siirto, a mobile Person-to-Person (P2P) transaction service created by Automatia and Tieto, enable you as a bank to create new business opportunities by staying relevant to your customers in their everyday lives.

The business case for Siirto

Providing a well-functioning mobile P2P service is one important step. Services of this kind have been around for over a decade already with well-known success stories such as M-Pesa in Kenya. In other words, the idea and concept behind Siirto is not new.

In the Nordics, where electronic payment methods (cards, account-to-account transfers, e-Payments) are well established and work well, one could argue that there is no real need for a new payments service – especially in the P2P space. 

However, the success stories of Swish in Sweden and Mobile Pay in Denmark have proven this wrong. Both have shown classic, hockey stick growth curves in terms of number of users and transactions, and have also expanded beyond P2P payments into Consumer-to-Business (C2B) payments.

I would further argue that there is a latent demand for a mobile P2P service in Finland, and that the Siirto platform has the potential to help banks reach business benefits such as:

• Further reducing the use of cash, which provides overall cost savings for financial service providers, merchants and the society as a whole, as well as

• providing a growth path to consumer-to-business payments, both in online/remote -and in-store areas.

Your customer experience, for your customers

It is estimated that roughly 60 percent of a consumer’s interactions with his/her bank are payment transactions. When these transactions go mobile – would you want someone else to interact with your customer or would you like to do it yourself?  The value of the transaction may well not be the service fee, or fees, associated with the transaction, but the interaction before, during and after the transaction.

With the Siirto P2P service, you can define the user experience – the moment before, during and after the transaction - for your customers whether it be through your mobile banking app or using a dedicated – bank branded – application for the Siirto service.

Providing the service with your own brand can also increase the feeling of security – after all, the service is provided by the customer’s own bank, rather than a possible third party. Handling that moment of payment will provide banks with opportunities to also provide other services related to the payment itself. These may be, for example, financing, offers from partners, insurances or other value adding services.

Several of the largest banks in Finland have announced that they are on-board with Siirto. They are well aware that if they do not provide services – be they payment related or others – that their customers want and also want to use, somebody else will. Are you ready to join the Siirto ecosystem to stay relevant for your customers?

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Read more about Siirto and payment ecosystems here >>>

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