Page 20 - EVRY Annual Report 2012

Our Business 20
EVRY
Financial Services
The EVRY Financial Services segment reported revenue of NOK 3,339 million in
2012.The segment’s total revenue represents 25% of the group's consolidated
revenue, and 39% of EBITA.
EVRY Financial Services is a complete industry vertical,
including all the group's deliveries to bank and finance
customers in the Nordic region. This includes a comprehen-
sive portfolio of module-based solutions that deliver seamless
integration with a bank's other systems. We also deliver IT
operations services and consulting services. For the UK mar-
ket, we have chosen to concentrate on card solutions. EVRY
Financial Services has 1,215 employees in the Nordic coun-
tries, and operates a delivery model that is integrated with the
company's Global Sourcing units in order to give customers
speedy time to market and better cost efficiency.
EVRY Financial Services is the leading Nordic vendor of IT
solutions for the bank and finance market. This reflects a long
history of IT services for Norwegian banks, which goes back
to the very first use of technology as a fundamental driver
for the efficient development of the banking industry. EVRY
Financial Services is the result of development over the years
from internal IT departments to a competitively exposed and
professionalised business. The segment invests heavily in
maintaining an innovative and cost-effective solutions port-
folio. This gives Norwegian banks economies of scale and a
speedy time to market, and also gives EVRY Financial Services
a sound platform for further Nordic expansion.
EVRY Financial Services started its first activities in Sweden
more than 10 years ago, and has developed a significant posi-
tion in supplying a number of banks and financial institutions
with services in areas including channel renewal, card solu-
tions and operating services for ATMs.
Important elements of the segment's strategy include rein-
forcing its Nordic footprint and continuing the development
of its solutions portfolio.
A dynamic market
IT is playing an ever more important role in helping banks to
achieve their strategic objectives, as well as improving their
competitiveness and ensuring a better customer experi-
ence. Operational reliability and high levels of security are
of fundamental importance to banks. However, banks also
attach great importance to innovative services, with particu-
lar emphasis on self-service, automation and information
management.
According to the research company IDC, Nordic banks and
financial institutions spend around NOK 36 billion on IT
annually. Of this total, the Norwegian and Swedish markets
account for NOK 5.8 billion and NOK 14.1 billion respectively.
These figures do not include investment in internal IT depart-
ments, which represents significant further expenditure.
The introduction of more demanding capital adequacy re-
quirements for banks make it all the more important for them
to improve profitability, and this is putting further pressure
on costs. As a result, banks are increasingly looking to self-
service solutions that are cloud-based and can be operated on
efficient and flexible infrastructure. In addition, they are more
willing to consider purchasing external services for areas not
previously considered for this.
Banks are subject to increasing regulatory reporting require-
ments, and this also drives demand for IT services. Money
laundering regulations represent one example of this trend.
Mobility represents one of the most important developments
in technology for the banking sector. EVRY Financial Services
introduced the first mobile banking services in Norway in
2006. This technology has quickly become the channel most
used by consumers to access their Internet banking accounts.