«Annual Report 2013 “ Future trends We will continuously work towards our vision in becoming our customers most valued Mobility ...»
Annual Report 2013
“ Future trends
valued Mobility to banking.
Accessibility for the end-
what financial services business they Increased levels of regulatory are operating in. requirements.
Customized and niche solutions.
Thomas Lundberg Less loyal customers towards Managing Director traditional services providers such as banks.
“ Crosskey has been an important Mobile payments, security and user partner, as they had the business friendliness are key words today and expertise required to provide in the future. Crosskey’s Card & high-quality non-stop services. Mobile Payments is stepping up to meet the changing market needs.
Ulla Parkkali Business Manager at Elisa “ Crosskey’s solutions are the cornerstone of our business.
Iikka Kuosa SVP, Business Development and IT at S-Bank 2013 was appointed “Health Year” at Crosskey. Meet our teams and learn what triggers them.
Crosskey in brief We develop, deliver and manage systems and solutions for the Nordic financial and capital markets Our mission is to make it easy and profitable to run a financial business Our vision is to be our customers’ most valued partner We have offices in Mariehamn, Helsinki, Stockholm and Turku We have about 200 dedicated employees Our turnover 2013 was 28.181 MEUR with a net profit of 2.192 MEUR Examples of major clients: S-bank, Ålandsbanken, Elisa, Marginalen Bank, DNB Managing Director’s Review Sailing with tailwind During last year Crosskey had a strong focus on the future market and customer needs.
Besides serving our customers at a consistently high level, our dedicated work also enabled us to attract two new assignments this year.
The year showed a great growth trend compared to 2012 and we approach 2014 with a tailwind.
We have continued to develop our product range into a more modular approach where the customer can choose the part of our offering that they need. This is a step towards our mission in making it easier for our customers operating in the financial services industry to focus on their core business and profitability.
Our eBanking solution was launched as a stand-alone product family, with internet banking for both individuals and corporates, mobile banking and the personal finance management system “Advisor” as sub-products. Our stand alone card system became PCI-DSS certified making Crosskey one of the few PCI-DSS certified service providers in the Nordics.
Crosskey is made by people for people Our business is all about combining the latest technology with professional people and strong customer relationships. Thanks to our committed people we have, during the past year, signed two new customers, Marginalen Bank and Folkia. Further, we have continued the work to support the operations of our existing customers. At the beginning of 2014, our customer Ålandsbanken decided to take Crosskey’s “Capital Markets on tap” solution as their new back-office platform. The solution has been developed together with our partner, Model IT and makes it possible for our customers to choose our capital markets offering as a stand-alone solution.
Our long-term customer, S-Bank, undertook some major changes as they acquired LähiTapiola Bank and also the majority of shares in FIM. Crosskey will support them in the huge system integration work that they have ahead and we very much look forward to being a part of S-Bank’s continued journey in the Finnish banking market.
Going forward together All in all 2013 was filled with exciting challenges and opportunities and a good growth trend compared with 2012. With this in mind we face 2014 with a strong tailwind. We will continuously work towards our vision in becoming our customers most valued partner by understanding their needs and offering the solutions that make their businesses even more profitable; no matter what financial services business they are operating in.
I would like to thank all customers, partners and shareholders for the past year and look forward to moving forward with you. Finally, I would like to thank all my fantastic colleagues at Crosskey – let’s make 2014 a year to remember!
Thomas Lundberg Managing Director Highlights 2013 The Internet Solutions of the future are here Crosskey launched its stand-alone product group eBanking, including internet and mobile bank for both private and corporate customers. Our eBanking stand-alone products are one step towards our goal in having a more flexible, modular offering for our customers.
Flexible & Safe Card Solutions Folkia, one of the biggest Nordic players within consumer loans, chose Crosskey’s card solutions for their Finnish market. Cost efficiency as well as a PCI-DSS certified system played a big role in the choice of partner and we’re happy to support Folkia on their way in entering the Finnish market.
International Security Standard Crosskey became one of the few Nordic PCI DSS compliant card service providers; fulfilling the most stringent security standards set on the market.
The PCI DSS standard is the most rigorous industry-recognized paymentcard security standard available globally, meaning that Crosskey’s customers can rely on having a trustworthy and secure service provider.
A Capital Markets Solution for future needs A cooperation agreement was signed between ModelIT and Crosskey for developing and offering a total Capital Markets solution. This means that Crosskey now can offer an independent, complete Capital Markets platform for the Swedish and Finnish markets.
Customer Stories Elisa
How did your collaboration initiate? Potential development of virtual currencies and Ulla related regulations.
When we started a new company, Elisa Rahoitus Oy, and our carrierindependent Elisa Wallet service, combining Near Field Communication (NFC) technology and virtual credit cards, it was necessary to find a reliable partner that could tailor an overall solution according to Elisa’s needs.
Monika We are a fast and flexible partner with the ability to adjust after changing circumstances. Since it was important for Elisa to have a partner with a strong focus on established goals, we could deliver on Elisa’s needs.
Ulla The cooperation with Crosskey has been smooth, based on the Agile Model. Crosskey has been an important partner, as they had the business expertise required to provide high-quality non-stop services.
“ Crosskey has been an important partner, as they had the business expertise required to provide high-quality non-stop services.
How did Crosskey approach Elisa’s challenges in the beginning?
Monika This project was the start of a change in the way of working at Crosskey. We went from delivering projects according to traditional Waterfall Methods to working with agile methods utilising Scrum.
Initially we quoted Elisa our card system, and in order to fulfil Elisa’s needs we developed a direct access to the MasterCard network.
Did you reach the anticipatedresult?
Ulla Crosskey has been flexible and has according to our request enabled agile product development, which is a cornerstone to us. As a result of that, we are the first company to launch an integrated mobile payment service on the Finnish market, both online and brick and mortar; including a virtual payment card and a prepaid payment sticker.
Monika Our focus throughout the process was to deliver with Elisa’s end customers in mind. For that purpose we established a good way of working. We achieved, and even exceeded, the goals we had set.
How will this co-operation evolve in the future?
Ulla We have had a successful cooperation up until now, and we hope to see it develop in the future.
What was the challenge and solution for S-Bank?
Iikka We are the only retail bank in Finland. Initially we were looking for a solution that would enable us to create a new way of doing business in the Finnish banking market.
Heidi Our Core Banking product and online bank corresponded to S-Bank’s needs, i.e. support for customer management, deposits, loans, payments and business products, as well as online banking as the primary channel.
The Core Banking product is stable and handles millions of customers and transactions with high accessibility. Our internet bank was already known as one of the best online banks on the market and it was adapted according to S-Bank's layout and product range as a retail bank. Along the way, we have constantly developed the product range in close cooperation with S-Bank.
Did the solution meet your expectations?
Iikka Crosskey has a solid and down-to-earth way of presenting its solutions. We want to invest in understanding new solutions before we make a purchase decision. We have come up with a good and trustworthy way of finding the solutions that are the best for us.
“ Crosskey’s solutions are the cornerstone of our business.
How would you describe your co-operation?
Iikka Together we have created the formal workings for interacting on both our day-to-day productions and our development projects. The goal is to be straightforward, open and honest in both directions.
Crosskey’s solutions are the cornerstone of our business. In general, the banking business is highly intensive when it comes to information systems and Crosskey’s system enables our central products and services. For us, it is essential to concentrate on fulfilling the needs of the customer. This is possible when we know that our partner takes care of the systems.
Heidi I agree, we have defined clear and efficient processes that facilitate an open dialogue between us. Our collaboration has evolved in the right direction, perhaps even beyond our expectations, Crosskey has grown along with SBank. We have benefited greatly from collaborating on the task of creating solutions that meet the bank's needs and in our efforts to streamline our processes. The fact that Crosskey continues to have the customer's confidence proves that our partnership has been a success and we will play an important role in the creation of the new S-Bank. We look forward to continuing to work closely with S-Bank, where we are perceived as flexible, fast and innovative.
“ We would absolutely recommend Crosskey.
Crosskey is a player with the systems expertise and in-depth understanding of central banking processes.
How do you see this co-operation evolving in the future?
Iikka In addition to a long, shared history, we are committed to further develop our co-operation in the future. Crosskey will likely play a significant role in enabling our business even in the years to come. Based on our experience, we would absolutely recommend Crosskey. Crosskey is a player with the systems expertise and in-depth understanding of central banking processes. This is crucial, as good systems are built on good processes.
Business Areas Core Banking
Our business area Banking is one of the few SWIFT Service Bureau providers in the Nordics. This means that our system acts as a gateway between banks, financial institutions and corporations to the SEPA and Foreign Payments network.
During 2013 agile working processes have been implemented which resulted in improved efficiency. Concrete actions in order to meet up with market demands were finalised, such as making all payment products SEPA compliant according to SEPA End Date Regulation 260/12 and upgrades according to SEPA rulebook version 7.0. Our product portfolio grew with Direct Payments and our lending system now fully supports BASEL IRB (models to quantify banks required capital for credit risk according to Basel regulations) in both Finland and Sweden. Furthermore, we improved our “Know your customer” processes according to compliance requirements for Customer Registers within the financial sector.
Outlook The finance industry is at the moment growing faster than ever before. Banks are facing competition from new entrants, new products are entering the market and payment methods are emerging at the same time as regulations are increasing. A natural meeting between customer and the bank at a branch office is no longer a guarantee and banks need to find ways to work with their customer relations remotely and seamlessly, independent of what device the customer is using.
During 2014 Crosskey will continue to meet its customers’ need of a fast “time to market”, taking integration requirements especially into consideration. We will take our agile working processes to the next level including both agile systems and people. Our offering will continuously be developed in order to always be future proof; always striving to be flexible and support new innovations.
Our main focus for 2014 will be to deliver our customer projects with a high quality and have a close cooperation with our customers. Banking is highly involved in the program for merging S-Bank with LähiTapiola Bank and FIM with several projects included in the merging program. Banking will also play an important integration role in the new Capital Markets project during 2014.
Heidi Wik Business Area Manager, Banking Capital Markets
To extend our product palette, we have set up a co-operation with Model IT, a skilled technology company in Capital Markets product development.
Their back-office system for fund and asset managers will be developed jointly to cover trading related back-office functionalities as well as the demands on the Swedish market. The co-operation got a kick-start by the pre-study carried out for Ålandsbanken around the turn of the year.
The merger of the S-Bank and LähiTapiola Bank was announced in summer