© Nokia 2017

Fintech within

Nokia

Kristian Pullola, CFO

December 5th, 2017

© Nokia 2017

© Nokia 2017

30 years of Fintech inside Nokia

1988 First version of intercompany Netting system launched

1997 First centralized payment factory supporting the pay-on-behalf concept

2002 RosettaNet remittance advice message (3C6) integrated to payment factory

2002 First fully automated e-trading platform integration (FXAll, Currenex)

2003 First (pre-ISO 20022) C2B XML payment file implemented

2007 Nokia joins SWIFTnet Score to focus on bank agnostic implementations

2009 Live with ISO20022 v2 with all banks used for payments

2010 CLS (Continuous Linked Settlement) implemented

2011 First SEPA payments implemented

2013 Web-based payment portal to replace proprietary eBanking tools

2014 Supply chain finance integrated to payment factory

2015 SWIFT messaging with first banks into use (GTC) for guarantees and L/Cs

2017 Evaluating dynamic discounting

2017 Receivables Finance Management (RFM) under development for Nokia by

GTC

© Nokia 2017

Enabling factors for “Fintech”

success within Nokia

• Right people with passion to innovate

• Early introduction of lean and agile ways of

working (“DevOps”)

• Focus on standards and system/bank

agnostic solutions

• Ensure data quality and integrity

• Investment in understanding and building

right architecture

• Build reusable system components

(modularity)

• Be an early adopter = influencer

• Embrace automation, AI and robotics

Automation • Leads to higher quality

• eliminates user errors, streamlines processes and people can focus on value-adding tasks

• Improves efficiency

• provides scalability and reduces cost

• Increases security and compliance

Clear benefits of digitalization

Monitoring • The large data and process volumes require well implemented monitoring tools

• Real-time alarms to relevant team(s)

• People can focus on key issues and ignore minor problems

• Detects inconsistencies and missing data

Exception Handling • Exception handling allows the teams to focus on what is really relevant and critical

• Reactiveness

• Being able to react very fast to emergency events (system outage, network issues, etc.)

• Provides alternative paths and processes

Error Prevention• Proactiveness

• Learn from previous errors implement efficient controls to prevent these in the future

• Continuously improving the systems and processes based on learnings

© Nokia 2017

Nokia payment factory evolution – leveraging retained knowledge

Time

Wo

rklo

ad

-P

roje

cts

an

d E

ve

nts

Team Size

© Nokia 2017

Current state of digitalization

within Nokia

• High level of centralization and automation

of processes enabled by digitalization

• Significant economics of scale and process

quality gains in

• Centralized payment processing

• Liquidity management

• Financial markets execution

• Treasury accounting

• Reconciliation and controls

• Digitalization of Trade Finance in progress

Capability and capacity to do more in the

future

© Nokia 2017

What’s next?

• Incremental improvements in areas of

automation, robotics and master data

configuration

• Implement a Receivables Finance

Management module (GTC)

• Evaluate and implement Dynamic

Discounting to complement Supply Chain

Financing offering

• Investigate new technologies and

applications (SWIFT gpi, KYC platforms,

DLT/Blockchain applications etc)

CHALLENGE US!

We are ready, able and willing to push the

boundaries and create together the next

level of innovation