OFFICIAL LAUNCH LUXTRUST & INFOCERT PARTNERSHIP€¦ · AGENDA 18:00 Introduction 18:10 Why a European Digital Trust Champion 18:20 The Digital Transformation in Financial Services

OFFICIAL LAUNCH LUXTRUST & INFOCERT PARTNERSHIP

AGENDA

18:00 Introduction

18:10 Why a European Digital Trust Champion

18:20 The Digital Transformation in Financial Services

18:50 Leveraging our combined strengths

19:20 Digital transformation in Europe

19:50 Closing remarks

20:00 Walking dinner

WELCOME

SERGE ALLEGREZZAPRESIDENT OF LUXTRUST BOARD

A WORLD IN CONSTANT EVOLUTIONAnd so has been LuxTrust

2005

15% of world populationon internet

1 https://www.internetworldstats.com/emarketing.htm.

1


2009


PSD1


1


2016

50%of world populationon internet


1



PSD2

GDPR8,8% of total retailspending

2018


1

WHY A EUROPEAN DIGITAL TRUST CHAMPION?

PIER ANDREA CHEVALLARDCEO, TINEXTA

Tinexta was established in 2009 by Tecno Holding,owned by the major Italian Chambers of Commerce.

In 2014 the Company had its Initial Public Offering(“IPO”) on the AIM market and in 2016 the listingmoved to the STAR segment of the MTA market(Milan) operated by Borsa Italiana.

The Group operates through 3 Business Units:

1. Digital Trust

2. Credit Information and Management

3. Innovation and Marketing Services

TINEXTA SPA

2018 PREL IMINARY RESULTS

REVENUES

€ ~238 m

EBITDA

€ ~63 m

NFP/EBITDA

1.9 x

LISTED ON MILANBOURSE SINCE

2014

EMPLOYEES

~1,300

TINEXTA: EVOLUTION OF KEY FINANCIALS

Employees (#) 334 658 689 < 900 > 1,150

€ m

Revenue

EBITDA

20132

651

101

2014

77

11

2015

126

25

2016

147

29

2017

181

41

~ 1,300

2018

Of which:Digital TrustRevenues: € ~95 mEBITDA: € ~25 m

~ 63

1 In 2013 Digital Trust Revenue amounted to € 32 m and EBITDA of € 7 m. 2 2013 numbers are Italian GAAP. All subsequent years are IAS/IFRS.

11

~ 238

+32%

+55%

EU COVERAGE THROUGH LOCAL CHAMPIONS

1 The European Regulation No. 910/2014 (electronic IDentification And trust Services).2 Source: Statistics MRC (https://www.reuters.com/brandfeatures/venture‐capital/article?id=5640).

Unified legal base: eIDAS1

Access to all EU countries with the same solutions and legal framework

Concentration processThe market is evolving towards a scenario with a lower number of players and a

larger average size

Growing market

The market in 2022 is expected to equal € 3 billion

30% CAGR from 20182

12

Italy / East. Europe –InfoCert

Iberian Peninsula–Camerfirma

Central Europe –LuxTrust

DACH Area –Next priority

SCANDINAVIA –Next priority

13

WHY CONSTRUCT A EUROPEAN CHAMPION

The European Union is leading the way to define higher standards of Digital Trust, which will haveautomatic, significant benefits for all stakeholders; Citizens, Customers Companies and PublicAdministrations. All recent EU regulations [e‐IDAS, GDPR, AML5 PSD2] are leading the drivetowards the building of Trust on digital transactions and treatment of sensitive information.

In this scenario the creation of a European Champion will aid the pursuit of these goals by ensuringthe most efficient and coherent application of the rules across Europe:

• Permit the aggregation of companies, most easily accomplished with common institutionalroots

• Operate under common European regulations, which create common market,

• All data center facilities to be located in Europe, with the highest cyber security assurancespossible.

DIGITAL TRANSFORMATION IN FINANCIAL SERVICES

AURÉLIE L’HOSTISSENIOR ANALYST, FORRESTER

© 2019 FORRESTER. REPRODUCTION PROHIBITED.


2019: The Year Digital Transformation Goes PragmaticAurélie L’Hostis, Senior AnalystDigital Business Strategy

February 26, 2019

We work with business and technology leaders to develop customer-obsessed strategies that drive growth.

17© 2019 FORRESTER. REPRODUCTION PROHIBITED.



We have entered the Age of the Customer


Empowered customers are causing a seismic economic and market shift

Source: Forrester Research


Customers Regulations Technology

What are the catalysts of change in financial services?

Cyberthreat


Willingness to experiment

Digital/physical integration

InformationsavvinessDevice usage

Self-efficacy


New experiences are resetting customers’ expectations.

Source: Starwood Hotels & Resorts.


New players are responding to changing customer expectations


Regulatory changes are altering the financial services landscape in Europe

Source: Forrester Research. Brief: Turn PSD2 From A Burden Into A Catalyst report; eid.as website.


Digital technologies drive speed and scale

More connected systems

Rentable, Internet-based

infrastructure

Accessible software

programming tools

Higher bandwidths

Automation technologies


Relentless cyberattacks threaten the economic stability on which most financial firms thrive


To compete, financial services firms must become digital businesses


Bolt-on Transform Disrupt

We’ve identified three key stages of digital maturity

Disrupt experiences

Disrupt businesses

Disrupt industries


Customer-obsession drives a complete business transformation


Brilliant digital customer experience requires digital operations

Source: Forrester Research. Digital Rewrites The Rules Of Business report.


Financial institutions vary in their digital strategies

Source: Forrester Research. “The State Of Digital Banking, 2018” report.


Phase I: 2011-2014Improve digital CX

Phase II: 2014-2017Transform journeys

end-to-end

Phase III: 2018-2020Tackle scope &

technology

Source: Forrester Research. “Case Study: Lloyds Banking Group Transforms Through 10 Customer Journeys” report.

Lloyds has entered the third phase of transformation


Some incumbents stand out as consistently innovative

Source: Forrester Research

Americas Europe Asia-Pacific


2019 will be a tough year


In 2019, financial services firms shift their focus to operational efficiency


Financial services firms are applying promising emerging technologies to overlooked areas

Anti-money-laundering

Identity verification

Claims processing

Liquidity management

Compliance & risk

monitoringKnowledge

management

Source: Forrester Research. ”Predictions 2019: Financial Services” report.


FS firms invest in RPA and AI in search of greater operational efficiency

Base: 2,879 global financial services, data, and analytics decision makersSource: Forrester Analytics Global Business Technographics Data And Analytics Survey, 2018


Financial services firms are enhancing security without compromising convenience


BBVA onboards new customers with a low friction, mobile-only customer journey

Source: BBVA mobile app

BBVA onboards new customers by letting them take a picture of their ID and a selfie, and making a video call.


ANZ offers Voice ID to add an extra layer of security for transactions

Source: ANZ website


In 2019, we expect to see less of this…


…and more of this.


Summary1. Empowered customers have given rise to a new era – the Age of the

Customer.

2. New players are responding to changing customer expectations and altering the competitive landscape of finance.

3. Regulatory changes are altering the financial services landscape in Europe.

4. To be able to respond to all this uncertainty, firms must embark on end-to-end transformation and advance their digital maturity.

5. Financial firms focus on operational efficiency as they prepare for a downturn.

FORRESTER.COM


Aurélie L’Hostis+44 (0)20 7323 [email protected]@AurelieLHostis

LEVERAGING OURCOMBINED STRENGHTS

PASCAL ROGIESTCEO, LUXTRUST

DANILO CATTANEOCEO, INFOCERT

ALFONSO CARCASONACEO, CAMERFIRMA

TOGETHEREVERYONE ACHIEVES MORE

LUXTRUST OVERVIEWEuropean coverage and flexible go‐to‐market approach

3Offices

80Employees

90+€ MLNTurnover in 2018

€1

Filed Patents1

Office60+

Employees10 MLNTurnover

1Patent

€

LUXEMBOURG200K

CONNECTIONS PER DAY

600kDIGITAL IDENTITIES

NATIONAL ECOSYSTEM

LUXTRUST OVERVIEWEuropean coverage and flexible go‐to‐market approach

LUXEMBOURGBRUSSELS

PARIS

3Offices

80Employees


€1

Filed Patents3

Offices80+


1Patent

€

600K 200KCONNECTIONS PER DAY

700kDIGITAL IDENTITIES

NATIONAL ECOSYSTEM

INFOCERT OVERVIEWEuropean coverage and flexible go‐to‐market approach

3Offices

80Employees


€1

Filed Patents4

Offices400


17Patents

€

PADUAMILAN

ROME

LONDON

InfoCert’s Revenues Trend ‐M€

32 41 47 5270

2012 2013 2014 2015 2016 2017

79

2018

Revenues CAGR: 21%EBITDA CAGR: 24%

Est.

INFOCERT NUMBERSEuropean coverage and flexible go‐to‐market approach

Just in 2018

17 Countries with enterprise customers +2k Enterprise customers

1.6M Retail customers +750M Preserved Documents

+150M Digital Signatures +350M eDelivery Messages

CAMERFIRMA OVERVIEWEuropean coverage and flexible go‐to‐market approach

3Offices

80Employees


€3

Offices40

Employees4

LATAM Markets Coverage

COMBINED OVERVIEWEuropean coverage and flexible go‐to‐market approach

BRUSSELS

PARIS PADUAMILAN

MADRIDROME

LONDONLUXEMBOURG

BRUSSELS

PARIS

3Offices

80Employees


€1

Filed Patents10

Offices500+


18Patents

€

We are now together the first European QualifiedTrust Service Provider.

We leverage on our combined expertise and marketexperience of local regulations to provide citizens andorganizations with a full breadth of products andservices enabling a fully trusted digital world.

DIGITIZING THE ENTIRE DIGITAL CUSTOMER JOURNEYTrusted solution for seamless digital end‐to‐end processes

TRUSTED ELECTRONIC IDENTITY

IDENTIFICATIONVerifying the identity of a user to

create an electronic identity

AUTHENTICATIONEnsuring and confirming a user’s

identity to access to an online service

ELECTRONIC SIGNATURE

Ensuring integrity, origin and collecting signer’s consent for a

transaction

DIGITIZING THE ENTIRE DIGITAL CUSTOMER JOURNEYTrusted solution for seamless digital end‐to‐end processes

IDENTIFICATIONVerifying the identity of a user to

create an electronic identity

AUTHENTICATIONEnsuring and confirming a user’s

identity to access to an online service

ELECTRONIC SIGNATURE

Ensuring integrity, origin and collecting signer’s consent for a

transaction

TRUSTED ECOSYSTEM

Allowing someone to use or enjoy something that one

possesses

NOTIFICATIONTransmitting data between parties providing evidence related to the

handling of the transmitted data in a very secure fashion

ARCHIVEDigitally storing any document

TRUSTED ELECTRONIC IDENTITY

SSLSecuring online exchanges

BUILDING UP INDUSTRY EXPERTISETrusted solution for seamless digital end‐to‐end processes

Banking InsurancePublic Administration

Consumer credit

Telco Utilities

Manufacturing

This is a non‐exhaustive list of companies using one or several services of LuxTrust and/or InfoCert.

CRITICAL MASS

FINANCIAL RESOURCES

MULTI‐COUNTRY SOURCINGCROSS BORDER DELIVERY

1

2

3

4

INSTITUTIONAL ROOTS5

BEST PRACTICE ANDSOLUTION SHARING

EUROPEAN TRUSTLOCAL COMPLIANCE

DIGITAL TRANSFORMATION OF EUROPE

KONSTANTINOS KAPSOUROPOULOSPOLICY OFFICER, DG CONNECT, EUROPEAN COMMISSION

Costas Kapsouropoulos

DG CONNECT

European Commission

Unit H4 "eGovernment & Trust"

Trust in a digital society

• Building trust in the online environment is key to economic and social development

• Lack of trust, in particular because of a perceived lack of legal certainty, makes consumers, businesses and public authorities hesitate to carry out transactions electronically and to adopt new services

• Main obstacles to the virtuous cycle of the digital economy identified by the Digital Agenda for Europe• Fragmentation• Lack of interoperability• Rise in cybercrime

• eID and trust services provide a common foundation for secure electronic interaction

eIDAS: boosting trust & supporting businesses!

eIDAS

Strengthen EU Single Market by boosting TRUST and CONVENIENCE in secure and seamless cross‐border electronic transactions

Provide a consistent set of rules throughout the EU

eIDAS – The Regulation in a nutshell

2 MAIN CHAPTERS SUBJECT TO DIFFERENT RULES AND REQUIREMENTS

Chapter II

Mutual recognition ofe‐identification means

Chapter III

Electronic trust services

Chapter IV

Electronic Documents

17.09.2014Entry into force of the eIDASRegulation

29.09.2015Voluntary cross‐border recognition

29.09.2018Mandatory cross‐ border recognitioneID

eSignature Directive rules

1.07.2016Date of application of eIDAS rules for trust servicesTrust

Services

eIDAS: Key principles for eID

*The Regulation does not impose the use of eID

Sovereignty of MS to use or introduce means for eID

Mandatory cross‐border recognition only to access public services

Principle of reciprocity relying on defined levels of assurance

Interoperability framework

Cooperation between Member States

Full autonomy for private sector

eID

eID schemes notified

• PT has notified• UK - opinion on peer-review• CZ, IT and NL - peer-review• LV – has pre-notified

Notified eID schemes

Country Publication

Germany 26 Sept 2017

Italy 10 Sept 2018

Spain 7 Nov 2018

Luxembourg 7 Nov 2018

Estonia 7 Nov 2018

Croatia 7 Nov 2018

Belgium 27 Dec 2018

eIDAS – Trust services

Horizontal principles

Electronic signatures, including validation and preservation services

Electronic seals, including validation and preservation services

Time stamping Electronic registered delivery service Website authentication

Liability International aspects Supervision Security requirements Data protection

Trusted lists Qualified services Prior authorisation EU trust mark

Trust services providers in EuropeAll trust services providers - 268

Trust services providers in EuropeActive qualified trust service providers only - 170

Trust services providers in EuropeActive qualified trust service providers only

AMLD5 – Directive (EU) 2018/843Published on OJEU on 19/06/2018

Payment Service Directive 2 – Directive (EU) 2015/2366 Commission Delegated Regulation (EU) 2018/389 – Regulatory Technical Standards for Strong Customer Authentication

Once‐Only Principle cross‐borderEU Regulation on Single Digital Gateway agreed on 24/05/2018

Digital on‐boarding and portability of KYCEC Expert Group on eID and remote KYC (2nd meeting held on 10 July 2018) – jointly managed by CNECT, JUST and FISMA

Company law Proposal to amend the Directive (EU) 2017/1132 adopted by EC on 25/04/2018 as regards the use of digital tools and processes in company law

Tackling online disinformation / Fighting fake newsCOM(2018) 236 final adopted on 26/04/2018

GDPR complianceData minimisation; use of trusted attributes, credentials and entitlements (such as age verification, proof of residence, etc.)

Audiovisual Media Service Directive Protection of minors / Age verification and parental consent…

Where eIDAS plays a role

CEF Building Blocks

Top Down

EU Law

eInvoicingDirective

Bottom Up

MS Large Scale PilotsLarge Scale Pilots (PEPPOL, STORK, etc.)

IDENTIFY with

eIDSIGN with

eSignatureEXCHANGE with

eDeliveryTRANSLATE with

eTranslationINVOICE with

eInvoicing

eIDASRegulation

The building blocks of the Connecting Europe Facility promote the adoption of the same open standards and technical specifications, by the different sectors of the Union, for the most basic & common functionalities of any sectorial project/ platform.

These core commonalities will enable interoperability across borders and sectors.

CORE SERVICE PLATFORMServices offered by the European Commission

DIGITAL SERVICE INFRASTRUCTURES (DSIs)

What does CEF Digital finance?

Funding for theEUROPEAN COMMISSION

Funding for theMEMBER STATES

eJustice Portal

EU Open Data Portal

BUILDING BLOCKS

GRANTSProjects in the Member States

SECTORIAL

…

eInvoicing eSignature

eDelivery eID

eTranslation e Archiving

Building block DSIs provide basic functionality and are reusable by sector‐specific DSIs

Grant Funding available !

Supported by the Connecting Europe Facility (CEF), the Call for Proposals (CEF‐TC‐2019‐1) provides grant funding of up to €5 million to support the adoption of eID and eSignature in Europe.

https://ec.europa.eu/inea/en/connecting‐europe‐facility/cef‐telecom/apply‐funding/2019‐eid

Supporting eIDAS adoption

eIDAS study on pilots for replication of multipliers: supporting the uptake of eIDASservices by SMEs, SMART 2016/0084

https://ec.europa.eu/digital‐single‐market/en/eidas‐smes

https://ec.europa.eu/digital‐single‐market/en/learn‐about‐eidas

What's next

• Factors driving the evolution of electronic identity and trust services• Globalisation and connected society• Increasing demand for frictionless experiences• Increasing concerns about use of personal data• Increasing crowded and fragmented digital identity market• Growing dependency between public and private sectors• Increasing cybersecurity risks• Rise of exponential technology: cloud, DLT, IoT, AI, social media

• Trends• Mobile first• Biometrics: multimodal and behavioural• Analytics enabling real‐time and continuous authentication• Blurring lines between the physical and the digital world – identity of things• Citizen‐controlled data• Changing identity ecosystem

What's next

What’s next

Digital Europe Programme

• Aiming at the digital transformation of Europe’s society and economy

• One fully dedicated programme in the EU budget reflecting the ever‐increasing relevance of digital

• Main pillars of Digital Europe (overall budget €9.2 billion): • High Performance Computing (€2.7 billion)• Artificial intelligence (€2.5 billion)• Cybersecurity and trust (€2 billion)• Digital Skills (€0,7 billion)• Digital Transformation and interoperability (€1.3 billion)

For further information and feedback

Web page on eIDAShttp://ec.europa.eu/digital-agenda/en/trust-services-and-eid

eIDAS Observatoryhttps://ec.europa.eu/futurium/en/eidas-observatory

Text of eIDAS Regulation in all languageshttp://europa.eu/!ux73KG

Connecting Europe Facility –Catalogue of Building Blockshttps://ec.europa.eu/cefdigital

eIDAS twitter account@eID_EU

Costas KapsouropoulosDG CONNECT, European CommissionUnit "eGovernment & Trust"[email protected]

CLOSING

PASCAL ROGIESTCEO, LUXTRUST

THANK YOU

CONTACT US:

[email protected] | www.luxtrust.com | phone: +352 26 815 ‐ 113‐15 Parc D’activités, L‐8308, Capellen, LUXEMBOURG