Tino Kam, Head of Transaction Banking Product Management at Nordea, spoke to P27 Nordic Payments to share his take on the value of P27, the platform’s expected benefits, and the importance of having a robust and resilient payments platform that serves the entire Nordic region. This article was independently edited by P27 Nordic Payments and is reshared here on Insights.
Transaction Banking is about payments
As Nordea’s representative on the P27 Advisory Board, Tino Kam is an important driver of Nordea’s engagement with P27.
With more than two decades of transaction banking experience across Europe, Tino has had a front-row seat to the evolution of payments, from initial discussions about the Single European Payment Area (SEPA) through the rise of fintechs and the establishment of P27.
“Transaction banking is all about payments,” he points out.
Thus Tino and his colleagues at Nordea are keenly aware of P27’s potential to reshape the payments landscape in the Nordics.
Tino says: “P27 is very relevant for a Nordic bank like Nordea and it’s customers. It’s definitely one of Nordea’s transaction banking key priorities in the coming years.”
And P27 is unique compared to payment initiatives that have come before, he adds. Unlike SEPA, for example, P27 is an industry initiative rather than a project driven by regulators. In addition, SEPA was focused on one currency, whereas P27 is being developed to accommodate several currencies.
Harmonised and standardised
Technology developments as well as customer expectations have also shifted the payments landscape significantly over the last decade meaning “instant is the new normal”, Tino adds.
Tino expects P27 will empower Nordea to provide a “harmonised and standard offering” to customers regardless of where in the Nordics they are based. As he puts it, P27 will enable a Nordic “Starbucks” experience for Nordea’s customers.
Regardless of whether customers walk into a branch in Helsinki, Copenhagen, or Stockholm, or log into any of Nordea’s digital channels, the “menu of options” and overall customer experience for making a payment should be the same, he explains.
Resilient, scalable, and compliant
With P27 as the underlying payments infrastructure, Nordea will be able to offer customers across the Nordics similar products and services, as well as comparable price tags. Especially merchants and corporate clients will get a similar payment or collection experience, whatever channel they choose and whatever specific collection instrument like invoicing or direct debit.
“P27 will allow us to offer a truly Nordic customer experience,” says Tino.
P27 will also be more “resilient, scalable, and compliant” than the domestic infrastructures it replaces, some of which are “nearing the end of their life-cycle”, he adds.
And as payment volumes and regulatory pressures continue to increase, P27 can offer Nordea and other banks a stable, robust platform that also complies with the demands of central banks, FSAs, and other regulators.
“Having a resilient and robust platform may not be as sexy as some of the other benefits of P27, but it’s hugely important for our customers,” says Tino.
Global interoperability and the value of P27
P27 also has the potential to enable global interoperability as it’s based on the global ISO standard.
“P27 will ensure our payments services have a 100 percent reach, not only in the Nordics, but that our customers can reach people and merchants globally,” says Tino.
This will open up new benefits for Nordea, as well as its corporate customers, consumers, and society as a whole.
On the corporate side, Kam believes P27 will facilitate the creation of value-added services, especially when it comes to expanding e-commerce and cross border flows. This will in turn make it easier for businesses to expand domestically and internationally by providing payments that are “low cost, low risk, and instant.”
For consumers, P27 has the potential to spawn more instant digital banking services, in multiple currencies and across borders, making cross-border, cross-currency payments as “fast and easy” as domestic mobile payments are today.
“The true value of P27 is what we can add on top,” says Tino.
Note: P27 is still in a preliminary stage, and the establishment of P27 is subject to regulatory approvals and requirements.
About Tino Kam
Tino is the Head of Product Management, Transaction Banking at Nordea. His focus is delivering sustainable and effective cash management, treasury, liquidity and payment solutions for Corporates. He is representing Nordea in the EBA association and P27 advisory board. Tino has 20+ experience in global transaction banking in leading roles for ABN AMRO and RBS.
You can read more P27 related articles on Insights.
Check out P27 Nordic Payments to read more about the project.
Sign up for the Open Insights newsletterTAKE ME TO THE SIGN-UP PAGE
The information provided within this website is intended for background information only. The views and other information provided herein are the current views of Nordea Bank Abp as of the date of publication and are subject to change without notice. The information provided within this website is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient.
The information provided within this website is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided within this website has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results.
Nordea Bank Abp is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction.
The information provided within this website may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Bank Abp.