Enento Group Oyj (ENENTO) Earnings Call Transcript & Summary

Very warm welcome to Enento world. Enento world, which is both exciting but also trustful. My name is Jukka Ruuska. I'm CEO, and I have been within the company now almost 9 years, and it has been a great journey, and that great journey continues. Unfortunately, Mikko Karemo, who was supposed to be giving the opening words and actually sort of acting as master of the ceremony over here, is not able to attend due to the corona situation. But despite missing his great opening words, so we will manage. Then let's have a brief look at the agenda. So today, we are going to have 6 presentations, and there are Q&A sessions after each presentation. And then there is a longer one, i.e., 30-minute session in the end of the day. So once again, I want to welcome you very warmly to this Capital Markets Day to discuss Enento, and I'm sure that my colleagues are sharing that warm welcome. Then going to the first presentation, i.e., building trust in the everyday. And this is about the Enento story. And the key things in Enento story is the growth potential. So due to the data and growing importance of data and the digitalization, so we have great growth opportunities. And what our business model is providing is a highly scalable business, i.e., that we can grow without respective increase in the costs. And then finally, a really very important part of Enento story is that we are having a business mix which is resilient, i.e., that when difficult times are hitting economies, then our risk management services are in high demand, and it contributes growth even during that kind of times. We are a leading Nordic information services provider. We have very strong market position in Finland and Sweden and excellent foothold in Norway and good opening in the Danish market. And what we are dealing with is trust. And why trust is so important? Trust is decreasing inertia. Trust is making transactions easier. Trust is making business easier. And that is what we are manufacturing. We are building trust in the everyday. And the means how we are building trust is providing transparency and providing tools and decisioning and capabilities to make best possible decisions in the everyday for our customers. And if you look at the Nordic societies, so the high level of trust has been one of the key part of the success story, what we have seen in the Nordic region lately. Then looking at the opportunities to create value and especially the new opportunities. And clearly, the first and pretty obvious one is new technology and digitalization. We are a digital company. We are a technology company. And it means that we can leverage new technology, which is naturally also always a challenge to us, how to find the right technologies, how to build, for example, sufficient capabilities in the area of artificial intelligence. But that is something we are good at. And digitalization is something very real, something very concrete and tangible for us. Digitalization for us means that we are helping our customers to change manual and analog process -- business processes into digital ones and increasing efficiency and improving customer experience. There are new business models rising. I think that the fintech industry is a good example, then the sharing economy as such and ecosystems, generally speaking. And fintech has been actually providing us great opportunities to grow. Fintech has brought new services, new demands for data and our services. And the same applies also to the sharing economy. When consumers are sharing stuff or when there are platform companies, there is a completely new way, a new demand for database services. And what we also recognize is that the importance and intensity of legislation and regulation has been increasing. And that respectively brings new customer needs. For example, within the financial industry, the compliance cost has become excessive. And it means that the processes has to be automated. They have to be digitalized. And that is where we are helping our customers. Sustainability is another sort of rising wave. And it is going to -- is touching all of us, and it is going to do that even further in the future. And from a growth opportunity point of view, there is now completely new demand for sustainability services. And that is definitely an area which is currently underserved, and we have been able to build some unique world-class services in that field. Data -- amount of data is growing, and it's growing exponentially. And for us, that means that our raw material is growing very rapidly. And with that increasing amount of raw material, we can build new services, we can improve our existing services. And clearly, there is an anxiety among our customers how to utilize, how to exploit data in an efficient manner. And that is definitely a good basis for our dialogue with our customers. Respectively, when the amount of data is growing, for example, within the social media, so it means that the concerns related to privacy and security are increasing. And that is an area which we have to be able to deal with. And we are investing. And we have invested, and we are investing heavily in order to safeguard that we can really protect the privacy of the data and retain our very strong reliability trend. And then with all these changes, you have to be agile. You have to be able to utilize the -- all capabilities you have within your company, but you have to also be able to utilize the external capabilities. You have to be innovating, and you have to have a shared innovation responsibility. And you have to be fast to launch new services and to be at the market. Then looking briefly at our business model. And I was already discussing some of the key topics. But the thing to start with is that all our services are based on data. And we are gathering data from multiple sources, from thousands of different sources. And we are qualifying that data. And then we are adding our intelligence, the intelligence of our systems, of our algorithms into that data. And then we are distributing it via digital channels to our customers. And having data as the common denominator, as the shared raw material to our -- to all our services means that we don't have to get new raw material every time when we are selling our service, i.e., we can reuse data many times as long as it's still valid. The other driver for the scalability in our business model is that our services are, to a large extent, automated, i.e., that we can grow without increasing, for example, our people at the same speed. So this is making our business model quite unique. Then looking at what are those things which are bringing us our competitive platform. And it starts again with data. So we are able to source data, to collect data from multiple sources, including also, for example, a great number of companies directly in Finland. And it is a great benefit because our customers and all our companies are relying to our brand. They are recognizing our brand. And they are ready to keep the data for us without any charge. And that is a huge potential also for the future. Another example of our brand value in data sourcing is our negative -- positive credit data in Sweden, which we are collecting from the financial industry. We have very advanced processing capabilities for data. And we are good to leverage data from different data sources, including unstructured sources. Our -- let's get one back. So then jumping to our database. This is definitely a key driver for our competitive platform. So first of all, with our data-processing capabilities and robust processes, our data is of high quality. And that is a necessity because in business information industry, there's a saying that fit in me fit out, and that applies to all data-driven activities. And our database is built on a granular basis, i.e. that the data is stored in its smallest form, in atoms, which enables us to build all kind of services smoothly. In production, we have invested a lot in order to safeguard that we have very reliable production. And that is most important for our customers because many of our services are business-critical to our customers. And then we are investing, as I already mentioned, to security and data privacy. Service development is clearly one of the key areas to us in order to generate growth. And in that respect, we have been very good to combine, for example, customers' own data to our external data. And we have been already for a long time utilizing unstructured data, i.e., structuring unstructured data, for example data from social media, into our structured data, so that it can be used for decisioning purposes. We have excellent capabilities to build models, i.e., to establish all kind of predictive, especially predictive models. And then the area of those predictive models can be broadened a lot from that what they are used for as of now. And there is no good service development without a very tight dialogue with customers. And most of our new services are based on customer interaction, on customer dialogue, and we have a requirement that all our new services are approved with customers. And then finally, in the field, our distribution and sales. So a large share of our services are distributed over the indications. And the integrations are important because then the data and services is swimming to the customers' operational systems very smoothly and very efficiently. And it also means that the switch cost is high. So it is increasing the barriers to entry in our industry. And on freemium side, when it comes to freemium business information, we have more than 6 million unique visitors per month on our sites. And that is a huge crowd in the Nordic terms. And it is a great venue to distribute services but also to have the visibility and knowledge. Then going a bit more in-depth to our growth potential and wherefrom that potential comes. And there are 2 very fundamental growth drivers to us. The first one is our customers' constant appetite, constant need to improve the quality of the decisions. So our customers are competing with the quality of the decisions. And therefore, there is a constant need for new data. I think that the excellent example is the PSD2, Payment Services Directive 2 enabled bank account data. Eero Arvonen is going to discuss more later. Sustainability data is another great example of that type of new data, which is in great demand. The data has to be better, i.e., that we have to be able to improve the quality and timeliness of the data, and there is appetite for that and then clearly for even further analytics, even more advanced analytics. And clearly, this is an area that we are accelerating with the help of machine learning and building that type of algorithms. So the first fundamental growth driver is the constant appetite for better decisions. The other fundamental growth driver is the digitalization of data-intensive processes. And to cut bit corners, you can say that all data-intensive processes are going to be digitalized. And we are helping our customers to do that. And we have very strong offering in the field of decisioning, in the field of housing-related processes, in compliance, but there are multiple other areas. There is just an example on procurement. And jumping from these growth areas to our current strategy. So in terms of offering, what we are putting effort is that we want to retain and strengthen our leading position in credit information market and risk management market. And Heikki Koivula will discuss that further. And then we want to be the #1 choice when our customers are seeking for a partner to digitalize their data-intensive processes. And Heikki Ylipekkala will discuss that area more closely. And then we want to be the leading provider of business information in the Nordic scale, and Karl-Johan will discuss that specific part. And then there -- we have recognized multiple growth opportunities within these areas, and they will be discussed later. But clearly, it requires also other things than just having the offering. We need the enablers, the topics making this possible. And it means that we have to be able to develop further our future fit and innovative organization. And then as a big topic for today as well is that we are in a process to build our new Nordic future platform, which is going to enhance our business significantly in the future. And based on these themes, we have picked up 3 strategic initiatives, those being Nordic sustainability service suite, digitalization of housing-related services and then the new business information opportunities for customers. And this all will be discussed later. Let me come back to the business model. And actually, what does this -- our resilient business model mean in sort of schematic manner. So when we have an economy where GDP is growing nicely, then our volume component is actually growing even faster because -- and the number of commercial transactions is growing faster than GDP. And then respectively, when GDP is diving, it follows that, and now I'm discussing the volume growth component. But then, interestingly enough, when things are coming bad enough, when there is sort of broad sense of urgency, sense of crisis, then actually, the usage of our risk management-related services are starting to grow. And that is shown at the left-hand part of the graph. But in order to safeguard that we can grow under all circumstances, we have put a lot of effort to new services development. And it is bringing the vital growth component to us. And that is not the only reason why we have been investing to new service development. We have the luxury of these growth opportunities. There is a huge demand for new services in the field of data and digitalization. And clearly, the new services development gives us opportunity to run very positive and future forward-looking dialogues with our customers. In terms of our geographic scope, so we are Nordic, but we are Nordic in a multi-local way, which means that we are using the best data and providing the best services fitting for the local purposes, not that kind of minimum or smallest common denominator on a Nordic basis. And we want to grow in the Nordics. We want to grow with our unique offering. I think that sustainability services is a good example of that. And then we are in the process to build our Nordic future platform, which gives us capabilities to grow on a Nordic basis. And then we are also looking at possibilities to make Nordic acquisitions. And then finally, in terms of sustainability, it's important to us so that we are behaving as a good corporate citizen, but even more importantly, we can make a change. We can make an impact by offering services, which are increasing the sustainability of our customers, and we are helping our customers to make sustainable decisions. Very good, and thank you for that. And now it would be time for the first Q&A session. Pia, any questions?

Yes, we have. The first one is, what do you see is -- see as the biggest growth opportunity in the strategic period?

Well, it's a difficult pick because, as said so, we have the luxury of these multiple growth opportunities. But to pick the one I'm believing most is actually this Nordic business information enhancement. And that applies especially to Sweden, so that we can leverage our capabilities and some of those services we already have in Finland, in Sweden and then go further to other Nordic countries.

Okay. Thank you. And the next one is, what do you see as the biggest growth opportunity -- oh, sorry. How would you describe the competitive landscape at the moment in various markets? And how does the DNB's acquisition of Bisnode impact that?

So we have good competitors in all our markets. And I think that our capabilities, i.e., the capabilities to collect data, to procure data, refine data and safeguard reliable service production are the key competitive means, as already discussed. And being sort of more concrete, so in Finland, we are clearly #1 in terms of business information and consumer information. In Sweden, we are #1 in consumer information. And then we are somewhat behind Bisnode in Swedish market. And then in Norway, we have a niche position but a very strong niche position. Then what comes to the acquisition of Bisnode by DNB, so I'm not expecting huge impact. Clearly, Bisnode is going to be able to utilize DNB's service development, but it's good to keep in mind that DNB is very strong and very good at business information services, but they are not concentrating on consumer information services. And that is an area where Bisnode is definitely active as well.

Thank you. And the third one which we have received is what is the most likely track for you to continue the Nordic expansion?

Yes. It is actually a cocktail strategy. And that cocktail is consisting of developing those operations we have already in Norway and Denmark further. This is a very natural way. And they are sort of good ways to grow with that. Then to go to new markets with our unique services. Clearly, in those areas, we are very good at, for example, direct-to-consumer offering. I think that we are very good at serving SMEs. We are having unique services like sustainability service or this PSD2 service. And then finally, as a third mix in our Nordic cocktails, so we have acquisitions, i.e., that making that kind of add-on acquisition that can accelerate our growth in those chosen areas, our sweet spot areas.

Thank you. That was all.

Thank you, Pia. And now it's time to invite Heikki Koivula and Eero Arvonen over here, and you are going to discuss Risk Decisions. Very warm welcome.

Thank you, Jukka. My pleasure to be here today with you all. So Heikki Koivula, responsible for the business area Risk Decisions. My journey with the company has been now for 10 years. And today, with me over here is Eero Arvonen from our tech team, and we will discuss with you how we are going to retain our strength and our leading position in the credit information business, very exciting. Well, credit information services are at the core of our business. We've been in the Finnish credit information market for the last 150 years, more than 40 years in Sweden. We've been developing the industry forward in both markets, together with the most demanding customers out there. And then there is great growth opportunities, as Jukka mentioned, in front of us as well. And just to remind you what is the credit information business that we have. So we have mission-critical services, as I said, to the most demanding customers out there. So for instance, I would say that we are part of every mortgage decision, credit card decision, car loan decision and corporate credit decisions made in Finland and in Sweden. Well, obviously, information is the key component of our services. Reliability of the data is really, really important. And then, of course, the strong position that we have that we will retain is a function also that, as I said, so we're serving the customers, especially the finance vertical customers since the very beginning, so 150 years in Finland with the -- all these customers. Our services are very tightly integrated to our customers' processes and services. And then it takes time to build up those data assets and create information data assets, which is great, obviously, to keep our strong position. Then we have the best possible brands in both markets in Finland and in Sweden to support our business. UC in Sweden, Asiakastieto in Finland are more or less synonymous for credit information. And that is creating also that type of a platform for the trust going forward. Well, with this feedback from the customers in the everyday, we believe also that we should be the ones driving the industry development forward in the Nordics. And going to the growth opportunities in this business. So as Jukka mentioned, so the -- our strategy is to retain and strengthen our leading position. There is a great number of growth opportunities. And today, me and Eero, we will discuss 4 of those, i.e., what is the sustainability? What does the sustainability bring us from the business perspective? How is the regulation bringing us yet again new set of business opportunities? We'll discuss about machine learning, what does it -- what is the impact of machine learning to our services, and then last but not least, we will discuss about the open banking. And Eero will show some very cool demos that we can prove that there is really good services on top of the open banking already in place. Well, so sustainability, so let's discuss about the sustainability more -- in a bit more detailed manner. So what is the opportunity for us? Well, I think that we can all agree that sustainability is here for good, meaning that the people behaviors, political opinions, even laws and regulations are driving the sustainability development in the societies. And when we discuss with our customers and their challenges, there's a great number of challenges that our customers have. But the one thing that we've been discussing with our customers very closely is that how to manage sustainability requirements in SME lending efficiently, i.e. -- and the problem is that how to set and -- how to set the sustainability factors, i.e., the ESG factors, environmental, social and governance factors, in the lending efficiently when there is more than 0.5 million active SMEs in the market; and then, obviously, how to incorporate the ESG sustainability factors to the lending processes and lending policies; and then very importantly, how to comply with the upcoming banking regulation that is stipulating that the sustainability has to be incorporated to credit decisions. Well, this is the challenge that we share with our customers. What is the solution then? So obviously, from our company's perspective, we think this from the data perspective. And in order to solve that problem that our customers are facing, you need to collect quite a lot of data. And you need to define and collect that type of sustainability data on all of the active SMEs on the market. And then also, since the main driver now for the sustainability in banking is within the credit decisions on SMEs, big volumes, you have to have standardized processes, you have to do that more or less in the automatic manner today. We believe that the winning formula is to connect, integrate the credit information services together with the ESG information, ESG services, i.e., the ones that our banks can then prove the sustainability of an SME. Then obviously, we have the perfect platform also to integrate the ESG services, i.e., that we can incorporate and we have -- incorporate the ESG data on our databases. We have those products and services that once integrating the sustainability angle of those, we can then, obviously, be the service provider covering both angles. Well, as I said, so this has been a topic that we've been discussing with our customers for some time already. And we have a proof of concept. We have the first generation of services already up and running in our Finnish market, and we have great confidence. And actually, we know that this will be also needed in the other markets, and that there is a great number of new services in this area coming up in the following years. And so this is a great opportunity for us, and we will invest bringing out these integrated services to our Swedish market next year as well. Well, what is then our thinking around machine learning? And it is good to remind that the traditional approach in our industry has been that the credit scores are predicting the probability of default. And the methodology for doing that has been more or less these type of traditional statistical methods, i.e., logistics regression. And there's really, really -- and that has been the mainstream for the last decades, which has proven to be a really good way of predicting the probability of default, i.e., how to make credit decisions. They are transparent, they are traceable and explainable. And obviously, we've been the market leaders building this type of scores to help our customers to make better decisions during the past decades. But yet again, the point of exploring machine learning and credit risk models is to see that how we can actually help our customers to make better decisions, i.e., the question is that can we, with the machine learning technologies and approach, predict the probability of default even better? There is pros and cons. We believe that in the future, already -- also with the machine learning technologies, actually, we can give our customers even better help in their credit decisions. There is some uncertainty still at the moment on the transparency, traceability and explainability using machine learning in that. And also, there is not a regulation at the moment in place how to use machine learning in this type of lending decisions in the Nordics. So what we have done is that we kicked off a program, we call it internally MELEX program, where our aim is to become, with the program, the leading provider of machine learning enabling credit scores. And we believe also that within the foreseeable future, we will see also the banking authorities coming out with the guidelines and regulation, how to utilize these new technologies also in lending and credit scores. So what we do at the moment, our analytics team, the best in the Nordics, is exploring how -- what type of variables, what type of things we have to do in order to prove and to build more or less future-compliant models on top of the technology. And again, as previously, we have -- we've been the leading ones creating the traditional model, so our aim is to be the leader in the future as well. Then let's talk about the regulation tsunami that our customers are facing all the time. Well, we know that this year, the European banking authorities launched guidelines in loan origination and monitoring. Well, the regulation tsunami has hit our customers before. So Basel II, anti-money laundering and the next one, the big one, is these guidelines in loan origination and monitoring, which means, in practice, that our customers in the Nordics have to go through all the processes, all the credit score models, all the frameworks, et cetera, to comply with the regulation from mid-'21 onwards. And obviously, our aim is to help our customers in this as well and then to make sure that the -- and obviously, we will create new services on top of this opportunity as well. And last but not least, this opportunity on open banking. So as Jukka mentioned, so the Payment Services Directive 2 opened this totally new information asset for companies like us to produce, yet again, services for our customers, so they can make better decisions. I'd like to hand over to Eero now, who will discuss this opportunity in practice, how we have built the services. And the floor is yours, Eero.

Thanks so much. Hello, everyone. Good to have you here. My name is Eero Arvonen. I've been working with Enento Group for about 4, 5 years now. My current title is Solution Architect. So yes, I'm one of the tech guys around here. So to put Heikki's message into more concrete terms, I was brought on to demo you guys some of the capabilities we've developed over the last couple of years. And the service we are talking about today is called Account Insight. It has to do with open banking and the PSD2 regulation that came into effect about a year ago. So let's take a look at what the service is about. Basically, this is what the service does. It accesses the bank account data of a loan applicant, henceforth known as the PSU, or payment service user, based on their consent. It processes the data in the context chosen by the PSU on behalf of a creditor. It delivers actionable facts regarding the applicant's financial behavior for the purpose of credit risk assessment. And all of this is done in a compliant way, and by compliance, I mean, in specific the PSD2, of course, and GDPR. Now I believe Heikki promised you guys a live demo, so I had better deliver here. So let's get that thing going. Here we go. So this is our testing tool, the sample bank. It's a bit ugly, but don't worry about it. You won't be seeing much of this. Before we get going, let's do a little mental exercise here. Let's imagine you are applying for credit. You're at the web page of a bank, filling out an application. It's asking you for stuff like net income, monthly net income, monthly expenses, number of children, that sort of thing, right? So once you fill out that application form, you click Next, and this is what happens. Okay. Let's do English because we're international here. You see this as the first thing. We're not going to read through the terms and agreements right now -- terms and conditions, rather, just going to agree. And you will be given the option to choose your bank. Now Osuuspankki has the best sandbox, in my opinion, so we're going to go with that for now. And the system will direct you to strong authentication. Let's see if I remember the test credential still. Here we go. And once you do your strong authentication, you will be given a list of your bank accounts, and you will be able to consent to us accessing whichever one of them you would like. So we're going to choose this one and hit Accept. And in a minute, we will be directed back to Account Insight. Now behind the scenes, Account Insight is downloading the account data, and there we go, we are ready. So as the applicant, you would now be directed back to the bank's page eventually. But under the hood, we've done the calculations I was talking about earlier and the risk assessments. So let's go back to the testing tool for a bit. Let's see if we have the results, and we do, scrap these to something where they are viewed a little better. Now this is ever so slightly technical, but do not worry. So here, we have this element called employment. So this is the data as the computer sees it. So if it's a bit confusing, don't worry. Basically, what our system is telling the creditor is that based on the transactions that the PSU had on their bank account, we are confident that they are working for a company called Tilupalvelut Oy with a monthly net salary of about EUR 2,500. So if you were applying for credit and said you work for this company and earn this much per month, the creditor would be inclined to believe you based on actual facts that can be demonstrated. I believe that is the demo. We're done with the demo. So let's go back to the slides for a minute. To give you guys a short technical look here, this is the application architecture of Account Insight, the way it's built. So the system is basically split into several smaller components, also known as micro services. They are represented here by the white and blue shipping container-looking things. Let's go through a couple of these quickly. For instance, there are a couple of services here in the red box that affect the calculation. One is for the purely mathematical portion. It's the most intense part of the process and can be scaled up and down independently. The other service in the red box is for matching companies. You've probably taken a look at your own transactions in your own bank accounts, and it's not always easy to tell what the actual counterparty of each transaction is based on the name that you see on the statement. So we have a micro service to do exactly that. Next, integrations. So we didn't want to expend resources on building all the bank integrations one by one by ourselves. So we partnered up with a vendor. Later, we might have a need to include another vendor if we're expanding to other markets or such, or we might want to build direct bank connections. So this was all taken into account in the application architecture. With one micro service per direction of communication to and from the bank, the rest of the system is completely counterparty-agnostic. So all in all, because we composed our services from micro services, we can change any one of these without rebuilding, redeploying or retesting all of them. And what's even more important, we can reuse all of these capabilities in any context. Okay. So I showed you some picture with cute little animal logos and a quick demo. So what? Well, first of all, we are cutting-edge. Our goal is to profile as a cool fintech all the while retaining the trust and respect we have earned over the long years, as Heikki mentioned. Secondly, I've been sounding our horn for a few years now, traveling the world, showcasing what it is we do. People in the tech community know us now, and this helps us to attract top professionals. Finally, we build scalable solutions here. In events like these, our CEO Jukka is always quick to mention our scalable business models. But it's my job to mention that the technical decisions such as one made here affect how scalable our solutions are, reusability through and through. Let me give you one final example. Let's say you want to rent an apartment, yes? Usually, you'll have to prove you have income. And how do you do that? Well, you might go into your online bank account. You might export your payslip as a PDF file or something, and you might attach it to an e-mail and send it to the landlord, right? No. That way is not reliable. It's not automated, and it's most definitely not secure. But our stuff is, and this is the way we do things around here. We build them once, we build them well, and we run them anywhere. Thank you. Over to you.

Very good. Maybe I'd like to mention a few things, adding on Eero's presentation as well. So it is fascinating what we can do. The size of the company, we can do multiple, very cool interesting stuff. And yet again, I would also like to mention that we've been developing the industry forward for a long time, and we will continue to develop the industry forward in our markets, which means that we have to utilize the cutting-edge technology. We have to be able to understand our customer needs. The examples of incorporating the sustainability into our offering. We've been first in the market. The applying machine learning models in credit risk management, we want to be the leader in the Nordic market, applying those. So yet again, this is a great example how we actually can deliver the strategy of developing new services based on our customer needs. Thank you. Now it would be time to ask questions for myself and Eero.

Yes. We have received good questions for you. The first one is, could you describe the market size of credit information? Is it Risk Decisions business that you talk about when you talk about credit information?

Well, credit information, as I said, is something that we've been building the company on during the past years. The size of the revenues that are corporate -- or that are built on top of credit information is more than EUR 100 million in the company. So most of the Risk Decisions business is related to credit information, especially in our Swedish market. In our Finnish market base also, there's more general business information products and services within the Risk Decisions scope. Then obviously, our business area SMEC is utilizing and providing services on top of credit information. But definitely, we have been market leaders in this area in Finland and in Sweden.

Good. Thank you. You discuss your customer relationship and value for customer in your presentation. Credit information business is quite established already. How much more can you really grow within this business area in Finland and in Sweden?

Well, based on the experience now in this industry and in the long history, so I would say that the credit information has been growing all the time. So it depends on the times, the credit society, the need for trustworthiness, need for -- and the digitalization is increasing the different type of needs for our industry. [ As Tina ] mentioned, for example, e-commerce, which is now a great volume driver for ourselves, and I think that we proved together with Eero that the growth opportunities that we see, the selected ones we discuss today are proving that we have, we can actually develop the revenues as well.

Okay. And here is a question on Account Insight. What is the main benefit for the consumer to give access to their bank account? If you don't give access, are you penalized?

Well, I guess the point is that since the creditor is able to make more accurate credit decisions, they're able to lower the margin for the ones that -- for the PSUs, for the consumers that consent to this. As per the -- for the penalizing part, I couldn't say. That's up to the creditor, of course.

I would say that the information transparency that the Account Insight is providing is good for most of the consumers applying for a loan.

One more thing. There's also something to be said for the automation part of it. We were talking about scalability and automation here. And the automation of account verification as well as income verification is a very heavy part in the process of creditors. So to automate that is actually a huge cost benefit in and of itself.

Okay. And one more, when developing new models and new services for customers in credit information side, do the new services replace old ones? What is the net impact that you expect to gain from new services?

Well, that's a good question, and that's -- it's a combination of both. For instance, let's use an example. So if we are -- and when we have launched, a better predicting consumer scores to our customers and which replace the old ones is greater value. So our customers are able to do better credit decisions. So we have -- and they are willing to pay us more since our service is getting better. Then on the other side, so there's a big number of, so to say, new services for new use cases, such as the sustainability or the PSD2 Account Insight that are actually not replacing anything. They are -- create new value for our customers. So it is a mix. So some of the new services replace the old ones, but there is better prices from our perspective. And then on the other hand, there is totally new services that are also addressing new -- more or less new use cases.

Now we have received still one question. How much of risk decisions is related to banking and finance customers? How much is other? What plans do you have to move beyond banking and finance?

Well, I would say that we are -- obviously, we are serving other verticals than the banking and finance. So -- and customer verticals, such as e-commerce that I mentioned. Telcos are using quite a lot of credit information because of that type of products that they have. Insurance companies, for instance, in Finland, are using our services. I would say that the -- our opportunities to further penetrate to other customer verticals is great in Sweden, where we have been more focused on the banking and finance vertical. So there we see, so to say, cross-sales opportunities to other verticals and the banking and finance.

Okay. And still one. I have to ask it. You did demonstrate some use cases related to open banking. When will we see this on the market? How much growth potential do you anticipate from these in the long run relative to current market size?

Well, it's good to note that with the open banking, so with the PSD2, so we are actually having the AISP, account information service provider, license to run these businesses since October last year. And we are in production with the services. We have customers using those. The one -- the customers that are running at the forefront are using these services. So this is a product that is up and running, generating revenues. And in the long term, obviously, this is making our -- this is making the credit decisions better, and it will have a significant revenue potential for us as well.

Also, the income verification part that I just demoed is just a minor part of what we can actually get out of the account data. Stuff we already have in production are also, for instance, recognizing gambling, recognizing debt collection, what else, plenty of things.

Yes. It's just the beginning of the journey.

Okay. Thank you, Heikki and Eero.

Thank you very much. Now I'd like to give the stage to my colleague, Karl-Johan Werner, who will discuss about the opportunity that we have in business information in the Nordics. Karl-Johan, stage is yours.

Hi. I have the pleasure to walk you through our next strategic offering, becoming the leading provider of business information. So my name is Karl-Johan Werner. I am responsible for the business area customer data management. And I have a special focus and responsibility for this strategic offering target. In this presentation, I will show you how important business information is in today's business environment, how big the market is, the huge potential for Enento Group and how we are going to be the leading -- the leader in this market. Next page, please? So before going into the strategy, I would like to show you some of our findings from the prework. And one key finding is that a number of opportunities for our customers in today's business environment and the number of opportunities are all-time high. And these opportunities are coming from new innovations. And I would like to highlight 3 areas. The first one, advanced application. You probably have seen this kind of application maps where we can see the growth of new applications coming like the last 10 years. But I think that more important, the number of application has increased in number of features and functions within these systems. I think there, we can see the biggest improvement and also the biggest increase regarding opportunities. Just to give you one example is that, today, you're more or less able to create an automated marketing campaign with inbound and outbound activities in a CRM system. It's more or less old functionality. 10 or even 5 years from now, it was hard just to send a normal e-mail to a CRM application. The second area, sophisticated techniques such as machine learning, AI, deep learning, different kind of mining techniques have been hot topics for approximately 10 to 15 years, but I see it's been only the last 2 to 3 years that companies have started to use these techniques. And it's also now that we start to see the benefits coming from that usage. And the benefits that we have seen is that better understanding of customer needs, behaviors and potentials, better and more correct decisions, reduction of manual work. The third area, new ways of working covers all the concepts and methods that are popping up which are changing our traditional ways of doing things. So these are just example, like customer journey mapping, customer life cycle management, agile development, multichannel sales approach, 4 examples. So they are all coming out from the potential to increase customer satisfaction, to be more efficient, to become faster out on the market, to earn more revenues. And the number of innovations or opportunities are plenty, and more will come. Next page, please. A common denominator for all these innovations is access to data. They all need data to work according to plan. However, data might be key, but what really matters is the quality. And I think this quote explain that in a good way, how important it is with high-quality data and how serious it could be with bad data, all the way from strategic decisions to operational tasks on the workflow. So you will not be able to utilize any of the innovations or benefit from any of the opportunities without data and high-quality data. And interviews and research that we have done shows that quality is a big challenge in today's business environment. But that is also an opportunity both for us but more importantly for our customers. And the customers that understands the importance of high-quality data, and that number increase. Studies show that the majority of the customers sees that, and they are willing to pay for high-quality data. So what does this then mean? Next page, please. From our perspective, looking at the market as is, according to our market studies and insights, the market is worth more than EUR 300 million in the Nordics, and it's increasing with high speed. We have identified more than 100 use cases. And with use cases, I mean like bigger task or process activities where business information is needed. And we have also identified or know more than 100 players acting in this business environment. And we see that less 10 of them as real competitors based on their positions and capabilities at the moment. So what do we aim for? Next slide, please. So we are aiming to become the leader in the whole Nordics regarding business information. And when I say Nordics, I say Finland, Sweden, Norway and Denmark. And important to have in mind is that we are already, as both Jukka and Heikki mentioned, that we are a leader in Finland regarding business information in all segments. And we have very strong positions regarding the SME segments in Sweden and Norway regarding business information. So do I think that we have the right prerequisites to saying that? Yes, I think we do. And the next [ page, please ]. We have a very long and deep experience within the industry. We know how to build and develop high-quality data, insights and solution that works. We have more than 150 years' experience altogether. We have a scalable business model and technical background that enable us to develop new solutions, to target new uses pretty fast and easy. I said it on the last slide that we are a market leader in several segments already. We have already a broad service portfolio with services already on the markets. We are not starting from scratch. And looking at our processes and system, we have well-proven and effective processes for collecting both structured and unstructured data and also to blend that information together with customers' own data and to create more refined data. We also have a very strong list of existing customer relationship. Many of them are leaders within their industries, and that helps us stay in the forefront regarding new services. And also looking at our brands, we are, as I said, market leader, and we have really strong brands in all geographical market, which, of course, is very useful, when doing something like this. I'm also proud to say that we have unique data and services within the group. As Heikki showed, our sustainability offering is a good example, where we have something unique piece of information that could be utilized both for credit-related and noncredit-related services. Other unique information that we have, just an example, is shareholder data, decision-maker's information. We have unique classification models as growth indicator in Finland. We have top prospects which are leading within their industries. So that was just to mention a few of them. So looking at next slide, please. So high-quality data is key. But there are other important aspects as well. Coverage is one, and I like to group that together with quality. So without a complete set of data or information, both internal and external, you are not able to take correct decisions, and the output will be the same as incorrect information. The second one, value-added insights has increased rapidly the last 20 years, when I started as a data scientist. And the biggest difference that I see is how the insight is used. Back then, that was something that you put in a report and presented before the EMT and use -- and develop mainly on internal data and manually developed. Today, insight is part of a company's core processes, is based on a large variety of internal and external data sources and is often automatically developed and implemented. The third one, high availability is also an important aspect. Companies have invested a lot of resources in new CRM systems, ERP systems, procurement systems or any other type of business systems. And of course, they would like to utilize all the functionalities that are in the tool instead of using a separate tool. So we need to make sure that the customers are able to utilize their existing applications, and thereby, they need to get access to our data and our information into their existing tool. And that is an area that has increased enormously during the last couple of years. The last area, user experience is also very important, of course. And I think that we all have had experiences with user interfaces that are hard to use, hard to understand. And we need to make sure that our service is easy to use, feels good. That's very -- it's very easy to say but hard to deliver on. You need to have a serious plan for how to deliver on that. So all these aspects will be covered in our new strategy. There will be special focus on each of these areas with dedicated resources and responsibilities to develop capabilities for the future. So let's have a look at our strategy approach. Next slide, please. So regarding the implementation of the strategy, we will use an agile approach. That means that we will enable us to deliver services, new services on a continuous basis throughout a longer implementation period. So we have already created a list of more than 30 potential use cases that we will start to work with, of course, in a prioritized order. But what we will do is that we will focus on each single use case and have a short and a long-term perspective, which means that we will deliver the best service short term to be able to monetize as quickly as possible, at the same time, have a long-term perspective to develop capabilities that could be reused but also help us to raise it to be sales. And this is just to illustrate that all the use cases we cover go across all the focus areas. So let's have a look at a couple of use cases that we have already started to work with. Next slide, please. So the first one is that we will work that we have the best database services covering decision-makers in the Nordics. And we already have a lot of high-quality data available. And we also have several services available in this field already on the market that we see a huge potential to increase this, both regarding size and also the usage. The second use case is to provide a more modern and comprehensive service to look up and research on companies and consumers that are available in the market today. We have already services targeting that need. We have freemium -- our freemium services, allabolag.se. We have Proff services in Denmark and Norway. We have the asiakastieto.fi. We also have more premium services in other countries, especially in Finland, but the potential is huge in the Nordics especially in Sweden, where there are few players dominating this area without solutions. The third use case is to make sure that companies can fully utilize the investments that they have done in application and systems to provide high-quality data and information services. So this probably means that we need to develop our integration capabilities but also to make sure that we have a comprehensive set of information available so that they can enrich and update their existing databases. We also have already services covering these needs, but we see a huge potential both to improve our services but also regarding revenues coming from this use case. I will show you a more concrete example regarding the last use case. We can move to the next page, please. So this is just an example. So take for example a marketing automation system or that kind of functionality in a CRM system. To be able to set up a marketing automation program with inbound and outbound dialogues, you need to define customer journeys that are relevant for your business and your customers, right? And to be able to do that, you need to have -- know what kind of triggers that are in the market, what kind of classification to classify the customers but also the products and the market and industries. And you also need to have model supporting that, so you know when -- who to contact, when and what kind of message. To be able to do that, so you are not just sending like ad hoc e-mails, you need to have like access real-time to high-quality internal/external data. You cannot only trust the information that you have internally, you need to have access to external information as well especially when you're targeting potential customers. You need to have real-time trigger data. You need to have predictive models. You need to have classification models. And that is something that Enento Group will target, and we target to be the partner for customers to be able to utilize systems like this. Finally, the next page, please, just to summarize. There are a lot of use cases available in the business information market at the moment. And business information is a prerequisite to utilize all these opportunities and innovations. So that creates a huge market but also a big opportunity for us. Enento Group, we are well positioned to take a leading position in the Nordics, and we are already a leader in several of the markets we are underway. We will also deliver new revenues short term at this time as we build strong capabilities for the future, and I think that is also very important to have with you. Thank you, and that was my final slide, and I'm open for questions.

Yes. We have received questions for you. Are you ready?

Yes.

You said that the market size is currently more than EUR 300 million in the Nordics. What is Enento's current market position? And how do you see the future potential for Enento?

Yes. So I mentioned it is a EUR 300 million market in the Nordics, and it's probably a lot more than that. That is what we have identified based on the use cases that we know. So there are more than 100 use cases, and I think that we are relevant for a majority of them. That doesn't mean that we will focus on all of them, that we could be and are relevant for a lot of them. And as Jukka said, this is our biggest growth opportunity, and we are well positioned already. We are the market leader in Finland. We are a market leader in this SME segment in Norway and in Sweden. And we also have several services covering that. One thing that I would like to add to that as well is that we are having dialogues with the customers on a continuous basis, of course. And we are getting so many requests from customers in this market, supporting them with these use cases. So that shows that there is a high demand for services and that the customers see us as the potential partner regarding these use cases. So I think that we are very well positioned in this market.

Okay. Thank you. Then another, who are your competitors in this business area?

Sorry, Pia, can you take that again? It was hard to hear you.

Who are your competitors in this business area?

Yes. As I said, we have identified more than 100. Of course, we don't see all of them as competitors. I think the main competitor in the Nordic is Bisnode. But since we are working in all industries and towards all segments, there are niche players as well. And it's very much based on which kind of use case we aim to target, so -- but I think that there are very few that are -- have that kind of spread and capabilities that I showed you, that we have in a group to be able to take a strong position in this market.

Okay. Thank you. Then we have still one. How are you planning to win the Swedish markets?

Can you take that again?

How are you planning to win the Swedish markets?

Yes, yes, that is a good question. I think we -- first, we have a very strong position in Sweden already in the SME segment regarding business information. We are leaders regarding credit information and credit-related services in Sweden. We have very strong brands. In Finland, we are a leader regarding business information. And of course, we will be able to utilize and take those services -- first, the experience, of course, but also the services that are relevant in Finland to the Swedish market. So that is -- that will be the easiest one. And then, of course, it is a lot about focus, the focus on the use cases that are the most relevant ones, that we are well positioned for and where we see a huge potential. And I think that -- and also one good thing is that the whole organization really look forward to this. So I think that we have -- that will help quite a lot when doing something like this, that we have -- everybody want to do this kind of movement or focus, and we have the capabilities to do it. So we are well prepared for doing that.

Okay. And still one more. Could you give some practical examples of your current customer cases? What is the revenue model in them, i.e., how do you get paid?

Yes, that differs between services. So we have both subscription services, the customers pay amounts in the fee. And I think I don't have exact percentage of how many of our services are that, but that is a good business and that is increasing business. And then we have more of this kind of recurring services where customers are buying information, for example, into the CRM system or any other system. And then that will be on a more transactional basis. And then, of course, we have more of this kind of ad hoc-related business as well, and that is very much based on what kind of delivery it is at that point. So we are using all kind of business models at the moment and payment models for our services. So we are quite flexible based on customer needs.

Okay. Thank you, Karl-Johan. That was all.

Thank you.

And now we will have a 10-minute break, so let's be back 1:35. See you soon. [Break]

Okay. So let's continue, and welcome back, and good afternoon on my behalf as well. So I'm Heikki Ylipekkala, heading Digital Processes business area. Now we will focus on Business Processes as a Service. As it was noted earlier today already by Jukka regarding our customer needs, there' s ongoing transformation process. And there were 2 areas highlighted: the importance of improving the quality of decisions; and then digitalizing data-intensive processes. And of course, Business Process as a Service, it's a lot of about digitalizing data-intensive processes. And in my presentation, I'll explain why and what are the core areas, where are we focusing on, what is our goal, and then example how we define and find out our customer needs, how we fulfill the customer needs in this area. And I also have, at the end, very interesting case study as example of strategic initiative we have started as a project recently. So let's move on. We all know that in all industry areas, there are a lot of -- there's unlimited number of processes which are currently dispersed, connecting or involving several stakeholders but without any standardized way chasing the information. And of course, when we are digitalizing our customer processes, it's all about connecting critical stakeholders. And what we're actually doing here as a result, and this is important, is that the mission -- the key mission for us here is maximizing our customers' own work time value. So we know time is money. Time is the most valuable asset we have or time is the most valuable thing we can give to each other. And I do believe this is true in each of our lives, but it's also true in our business when we are and when we can provide true automation for our customers with the greater data security, quality and efficiency. And then the key focus areas: housing transaction processes, so it refers to apartments, houses and transaction processes when the trades take place; and then also collateral management processes if and when typically apartment or house has been utilized as a collateral for a loan. Then another important focus area is compliance-related processes. And with the compliance, we refer, and I refer here, for our customer needs to fulfill the compliance rate required, be compliant with the regulation and to follow up the regulation which they must follow. And in this area or focus area, it's a lot about KYC, know your customers. It's about anti-money-laundering directive-related regulation, counter-terrorist financing. These type of things our customers must follow and fulfill, be compliant with the regulation. And in that area, we have services like beneficial owner services. It's about beneficial owners of companies, nonlisted companies; PEP, politically exposed person information; and also sanction list services, sanctions list like EU or United Nations sanction lists, this type of requirements and then services provided by us. Then an important area is, of course, also that we are discovering all the time new opportunities, new possibilities. And recently, there has been focus, for example, related to the electronic identification, DLT. DLT, meaning distributed ledger technology, that's often seen as a synonym for blockchain, for example. But definitely, just to highlight, we are not focusing on bitcoin type of services. With the DLT, we work together with the key stakeholders and with our customers to find out new ways sharing, delivering information instead of centralized databases only. And then what is our goal? As noted before, it's not more or less than be #1, be #1 choice in data-driven Business Processes as a Service. And to be a bit more concrete, our goal is to be #1 in real estate, apartment transaction processes and related information services and that we provide the best quality in compliance services and other processes we provide for our customers in the Nordics. And of course, as noted, we develop services on an ongoing basis to look new opportunities to streamline our customer processes to support and help them. Then this is the picture illustrating actually also how we work. It's example of housing-related services for financial sector, the core services we have. So we have divided based on our customer processes, also the needs for our customers. So first one, left side, is about object information and valuation. Typically, object is apartment or house. Then there are needs regarding the transaction process itself, meaning the process when finally then ownership and the ownership is changed against the payment. And then also collateral management-related processes, collateral management typically related to the transaction when apartment or houses is utilized as collateral. And then also fourth area regarding the loan life cycle as such. So there are a lot of changes during the way, i.e., for example, loan -- sorry, the installment-free periods or then cases when customers of the banks are asking more loan by using the same collateral if there is a buffer to do so. These are the 4, let's say, key areas of the needs of our customers. And then we have developed the services, which are below here. Housing valuation service, this is the service we have had in Sweden already a long, long, long time, 7, 8 years, I think. And we implemented similar service based on the experience we have had in Sweden, also for Finland beginning of this year. And it's been really, really successful service. And regarding the transaction service, we had a huge success story in Sweden with our Tambur service. This service is about connecting real estate brokers and banks when it's about trades and transactions for apartments and houses. And we implemented this service 2.5 years ago. And within 1 year after the implementation, 1 full year in operation, we already had something like plus 10,000 transactions per month. And after 2 years, 2 full years, last month, also in September, there were more than 20,000 new cases opened to this service. So this service is great especially for real estate brokers. When they get an order, they open the case to our platform. Instead of calling banks or checking e-mails, they invite banks with our platform to confirm about their role. And things are agreed in our reliable platform before the final exchange, and then the ownership is finally exchanged. Then regarding real estate information services, that's the base service for us, provided long time. It's about connecting our customers to the information we have in Finland in the real estate register. And it's about ownership, possible restrictions and also some add-on services like information regarding the area location, which are really valuable for real estate brokers as well. And then apartment information services. In Finnish market, we have this state-owned or public sector service provided by National Land Survey, new register for apartments. We are enhancing our services based on the schedule of that public sector service. But we also have developed earlier so-called digital apartment information services. Aim in Finnish market is to replace old-fashioned housing company manager certificate, [Foreign Language]. And in Sweden, in this area, we are focusing especially on the housing associations and information they need to maintain. And this is where I have this case example about the strategic initiative we are now or have already started. And then collateral management services, one additional issue here is also the valuation of the whole portfolio. The banks need to valuate their whole portfolio on a regular basis several times per year. We have a service for them, automated service to manage that as well. But then this exciting case with the housing associations. And first, short lesson in -- for Swedish language. So BRF is abbreviation of bostadsrättsförening, housing association. In Finland, we have housing companies, like limited companies; in Sweden, these are associations, but the roles and responsibilities are basically the same. And the challenge is we have 27,000 housing associations in Sweden, 1.2 million apartments. There's no central register for all housing associations, and responsibility lies in each of these housing associations to update and maintain their registers. And by law, they must maintain and keep these registers for 3 things or for 3 areas: about their members; about the apartments; and then about the liens. Liens are pledge for collateral against the loan. And as having 27,000 different entities maintaining these registers, it's really a challenging situation for banks and real estate brokers to collect the information they need. And then there's a lot of transactions there regarding apartments in Sweden. It's about 120,000 transactions per year only with the apartments. It's a huge volume, so -- and different ways of doing things, so of course, risk is involved that something is understood wrongly or delivered in a wrong way. And this is the area also where these BRFs, housing associations, have a risk because of the GDPR regulation, for example, General Data Protection Regulation. This information includes a lot of about personal data, and you need to be careful how you maintain the information and how you deliver the information. For example, e-mail is not a proper way to deliver that type of information. And the solution we have is the hub connecting BRFs, these housing associations, banks and real estate brokers. So they can maintain their register in a service we provide. And we provide that in standardized way, and then it's one access for all of the real estate brokers to our service to have information from several, several, several housing associations. If a central state register would be implemented for Sweden, which I don't believe because it's actually in Sweden, we have this -- it's even in the [Foreign Language], in constitution law, it's about the freedom of association that the government or state cannot force entities like housing associations to maintain their service in the public sector register. That's the view today. But if that will be established on a voluntary basis, of course, we can connect the information also from there or from the BRF administrators who would like, for some reason, to keep their own registers. And I think this picture illustrates the service in a good way. So we already have this Tambur service connecting all of the real estate progress in Sweden in practice and all of the banks. And all the volumes when it comes to the house, apartment transactions are already there. Of course, not exactly all, our market penetration rate today is somewhere at 95% or over 90%. But in practice, as I said, all of the banks and brokers are already connected. And now we will include these housing associations to the same concept by creating this BRF hub service. Maintain the mandatory information, they need to maintain about the members, apartments and these liens. And of course, we have a great opportunity also to enhance our services then with the information we have about the BRFs, the annual reports, financial situation, buildings, land, location information, that type of things. So this is a project we started last autumn, a couple of months ago. And the first version of this service will be available before the summer next year. And then finally, just a summary regarding the other interesting services we have already mentioned is this Nordic compliance services: beneficial owners; PEP; sanction list services. And then as a summary, when we are discovering these new great opportunities, electronic identification was one area mentioned already. And then this distributed ledger technology-based solution, so our approach here is to cooperate with the key customers, with the key stakeholders, also with the public sector. So for example, in Finland, we have participated several exercises. And we have, for example, now discovering and discussing about cooperation with a so-called Findy organization, where all of the key stakeholders from the public sector and private sector are present. So that was my presentation. I think now we have time for questions.

Yes, we do. And the first one is, could you describe the market size of business processes and also the future potential related to it?

When it comes to our core services and the focus areas at the moment, of course, it's significant. I mentioned already some numbers: 27,000 housing associations in Sweden. We have something like 60,000 housing companies, limited companies in Finland. In Finland, we have 1.5 million apartments. Transaction volumes are at the level of, if we take houses and apartments, more than 150,000 per market. Finland, Sweden are the current market areas. So in this area, the volumes are significant and has now the business opportunities.

Great. And the next one is, why do you focus on real estate and compliance-related processes? Which processes do you see as next in line?

Why we focus on these areas, we established real estate collateral information services about 4 years ago for -- in Asiakastieto. And it's, of course, about utilizing our existing, let's say, capacity and know-how and data we have. And also, when referring to volumes and business opportunities, housing transactions are and apartments are quite like fixed things. They will stay in Finland and Sweden most likely. The volumes might variate, but it's quite stable in a way. And we have also noticed that in COVID-19 situation that some volumes came a bit down with the apartments. But still, for example, Finland, Sweden, summerhouses, boost with that area was mitigating the decrease of the volumes. And the next areas, we don't know yet everything. I mean we are -- our way of working is to look all type of opportunities, test and try and fail but fail fast. And sometimes we have like stock services, even those have been already on the piloting phase. But the market situations have changed, for example, and for that type of reason. So a lot of opportunities.

And then regarding BRF hub, what kind of potential do you see in this?