1. SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND Banks and payment services in Finland Nets Holding A/S Management 19.9.2013 Deputy Governor Pentti Hakkarainen Bank of Finland

2. SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND Structure of the presentation  The challenging environment of retail banking  Drivers of change in payment services  Bank of Finland approach to payment services

3. SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND Payments made electronically Source: FFFS

4. SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND Value development of card payments Source: FFFS

5. SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND Nordics rely on payment cards

6. SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND Bank of Finland approach to payment services  Efficiency –Cost efficiency, technology  Non-discrimination –All customer segments must be considered  Correct price incentives –Relative costs of payment instruments  Continuity, reliability and contingency –Public-private sector co-operation  International compatibility –Standardisation