Tuva Palm

CTO/CPO at Nordnet

Adapt or die

The world is changing

New professions, majority went from some

kind of farmers to industrial workers

New political systems, from where power

came with land ownership or wars won to

more or less democratic systems

New medical systems, from folk remedy

to medicine, hospitals, doctors, and

health-care

New living conditions, majority went from

living in the countryside to living in

towns

TREMENDOUS life changing revolution

Recap: Industrial Revolution

Tremendous life changing revolution with linear growth

Society, health, work market, food habits…

completely turned around in less 150 years

Recap: Industrial Revolution

Tremendous life changing revolution with exponential

growth

SIMPLY PUT, EXPONENTIAL GROWTH LOOKS LINNEAR

AND NEGLIBALE AT START BUT SOON BECOMES

UNMANAGEABLE

INCREASED COMPUTING POWER

INCREASED ACCESSABILITY OF DATA

Technical Revolution

2018 – work climat trends

From large corps to networks of service

providers

From 9-5 jobs to flexible working hours

From title surfing to measurable results Top down management to bottom up ideas

It all starts with technical innovation and customer

needs MOBILE FIRST – NOW A REALITY GREAT UX – PIXEL PERFECT

VOICE – A RISING TREND CHATBOTS – ALREADY OLD NEWS

AI / MACHINE LEARNING ROBOTS / ROBOADVICE – A RISING TREND

TREND 1: SPLIT YOUR BRAND

(Facebook, Messenger, Instagram…)

TREND 2: ALL YOU NEED IN ONE PLACE

(WeChat)

2018 – Techtrends

It is not the strongest of the species that

survives, nor the most intelligent that

survives. It is the one that is most

adaptable to change. ”

“

Charles Darwin

First 20 years: 80% of Fortune 500 lost track

1888 1975 1990 2012

145 000

workers

75 %

market share

31 B USD

market cap

The Kodak story

- Feared digital would cannibalise sales

- Relied too much on own brand power

- Focused on short term product success

- Did not adapt in time

+ Understood customer needs

+ Built new digital cameras

+ Started new business streams

+ Invested in new markets

Fuji survived – Kodak failed

1985 2000 2004 2010

84 000

workers

27 %

market share

5 B USD

market cap

The Blockbuster story

- Did not foresee the digital market

- Relied too much on own brand power

- Did not diversify or adapt on time

- Failed to acquire Netflix

+ Understood consumer needs

+ Started with monthly subscriptions

+ Transitioned from physical to digital

+ Adapted to another business model

Netflix survived – Blockbuster failed

1996 Opportunity Industry changes Innovate

The Nordnet story

1 600 B SEK In Swedish Bank accounts today

OVER 50% Have 100 000 SEK in accounts

60% in CASH 40% invested in saving products

20 000 SEK Missed savings potential – 10 years

BUSINESS POTENTIAL The Swedish Savings Market

MAIN BANKING &

INVESTMENT CUSTOMER

ISSUES

LOW TRUST IN BANKING PAY HIGH FEES FOR ADVICE

RESEARCH SHOWS THAT:

16% of savers regularly

meet a banking advisor

45% of consumers don’t

trust banking advisors

60% of consumers lack

the know-how to invest

BUSINESS POTENTIAL Customer frustration with financial services and institutions

WHY? SIMPLY BECAUSE IT IS DIFFICULT TO

SUCCESSFULLY INVEST

WHAT IDENTIFIES A SUCCESSFUL INVESTOR?

• PRO-ACTIVE RAPID LEARNER

• FOCUSED WHILE PATIENCE AND WILLING TO SPEND TIME

• STRONG EMOTIONAL CONTROL

• STICKS TO A WELL DEFINED INVESTMENT STRATEGY

• ABLE TO CALCULATE RISK

• ADAPTIVE TO CHANGE

• REACTS FAST

Customer data

• Risk profile

• Financial situation

Customer behavior

• Real-time responses

Market data

• Events

• News

SOLUTION Leverage AI/machines to improve quality of

investments

• Personalized financial advice

• Adapting faster to changed

circumstances

• Robots managing the

savings for you

AI

ROBOSAVE

Nordnet’s Robosave

EASY TO GET

STARTED Answer a few short questions, so

Robosave understands what kind of

portfolio fits you

YOUR INVESTMENT

ROBOT Take care of your savings based on

your target goals

TRADES FOR YOU Robosave buys and sells

instruments for you to help you

maintain your desired risk level

- Targeting high-net worth individuals

- Increased regulation on mutual fund

provisions

- Time consuming face-to-face

interaction

Traditional Financial Advisory Services

+ Fully-digital advisory experience

+ Automated deposits

+ Automated rebalancing of

customer portfolios

+ Broader customer base by lower

minimum capital and fees

Nordnet’s Robo Advice

Thank you