Why would an international banking giant be interested in Oulu?Sari HeinonenAUGUST 2016

BackgroundChallenges incumbent banks are facingWhat is interesting in OuluHow can we do this better

Content

About BarrabesA consultancy company, established in the year 2000. Part of over 100 years old Barrabes Group, in Spain.We specialize in innovation, scaling businesses, digital transformation and new technology.Customers in 13 different time zones. Customers range from middle sized companies to several TOP 100 companies in the world. Present in Europe, US and Latin AmericaAround 180 employees.

NapapiiriHub is Barrabes’ local company in Oulu, Finland. Our mission is to

Combine the best competencies and talent between Finland and Spain.Innovate and manage R&D projects for Barrabes’ customers from SpainAccelerate and scale up businesses for Finnish/Scandinavian companies.

Very close co-ordination with Finnish government’s research institutions and the Finnish innovation ecosystem

01New technology is changing the business Blockchain, 5G, IoT, Big DataArtificial intelligence, 3D visualization and printingCustomer expectations are constantly changing.

New competitors have entered the marketGlobal internet giants, Fintech startups, Incumbent banks looking for new opportunities, Companies from other industresA bank is not a necessity anymore for the consumers

It is hard make innovation into realityLack of innovation cultureSlow decision making processesCore in banking – not in technologyGiant size

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Incumbent banks have a huge challenge to reinvent themselves

From a bank’s perspective all disruptive technologies are strong in Finland

World class high-tech research and competencies

Government funded R&D operations

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The first 5G testnetwork in the world.

Unique environment for co-operation of academia, private and public sectorEstablished companies in the area of IoT,5G and very active start-up sceneReasonable labor costs, committed employees

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Oulu is a great place for R&D

Oulu has reasonable labor and property costs in R&DBenchmark of prices of annual operating costs for a software development centre of 20 persons

The average annual operating cost across the 5 locations is EUR 2.54 m.

Oulu has the lowest operating costs of all the 5 locations

The benchmark is based on fDi Benchmark from the Financial Times Ltd 2016

0 1000000 2000000 3000000 4000000

San Jose (CA)

San Francisco (CA)

London

Madrid

Oulu

Labour costs Property costs

But what really makes us different in Oulu?

The things that differentiate OuluReal co-operation within the ecosystem.

We make things into reality – fast

Cabality to make end-to-end solutions

Enthusiasm: “My god, the whole Oulu is like a big university”

We are easy-going, straightforward and honest

What can we do better?1. Create clusters of services2. Easy commercial access to R&D

infrastruture3. Do basic things in marketing well