BELGIAN DIGITAL BANK NG TECHNOLOGIES Editor: Fabienne L’Hoost Authors: Wouter Decoster & Nicolas Preillon Graphic design and layout: OskarD COPYRIGHT © Reproduction of the text is authorised provided the source is acknowledged Date of publication: August 2016 Printed on FSC-labelled paper This publication is also available to be consulted at the website of the Belgian Foreign Trade Agency: www.abh-ace.be BELGIAN DIGITAL BANK NG TECHNOLOGIES TABLE OF CONTENTS CHAPTER 1 PRESENTATION OF THE SECTOR 5 SECTION 1 FACTS & FIGURES ABOUT BANKING 6 SECTION 2 FACTS & FIGURES ABOUT DIGITAL 10 SECTION 3 BANKING GOES DIGITAL 13 SECTION 4 STAKEHOLDERS 16 CHAPTER 2 SUCCESS STORIES IN BELGIUM 23 CATEGORY INFRASTRUCTURE INTIX 24 ISABEL GROUP 26 WIN 28 CATEGORY PAYMENT SWALLOW TECH 30 TWIKEY 32 WORLDLINE 34 CATEGORY FRONT-END AND BACK-END SOLUTIONS KOALABOOX 36 SOPRA BANKING SOFTWARE 38 THE GLUE 40 CATEGORY CYBERSECURITY NVISO 42 O.D.S.C. 44 VASCO DATA SECURITY 46 CATEGORY BIG DATA COLLIBRA 48 NGDATA 50 SIRIUS INSIGHT 52 CHAPTER 3 DIRECTORY OF COMPANIES 55 3 PRESENTATION OF THE SECTOR PRESENTATION OF THE SECTOR PRESENTATION OF THE SECTOR SECTION 1 The indicators below, which are taken from the Febelfin website, provide an overview of the Belgian financial indus- try (www.febelfin.be). FACTS & FIGURES ABOUT BANKING SHARE OF THE FINANCIAL INDUSTRY IN THE OVERALL ECONOMY At the end of 2014 the financial industry accounted for 5.5% of the gross added value of the Belgian economy and 2.7% of all jobs in the country. FIGURE 1: IMPORTANCE OF THE FINANCIAL INDUSTRY IN THE BELGIAN ECONOMY (END OF 2014) 6.0% JOBS 3.4% 2.7% IN MARKET SERVICES AS A WHOLE 11.8% GROSS ADDED VALUE 8.0% IN THE SERVICE SECTOR AS A WHOLE 5.5% IN THE ECONOMY AS A WHOLE 0% 2% 4% 6% 8% 10% 12% 14% Source: Febelfin calculations on NBB data BANK 99 banks were registered in Belgium at the end of 2015. 17 Belgium has the second highest international banking po- of them were banks under Belgian law with a majority Bel- pulation in Europe behind Luxembourg. Almost 60% of the gian holding. Of the rest, 20 were banks under Belgian law 82 subsidiaries and branches under foreign control are with a majority foreign holding and 62 were banks under originally from neighbouring countries, France, Luxem- foreign law. bourg and Netherlands. 6 BELGIAN DIGITAL BANK NG TECHNOLOGIES FIGURE 2: NUMBER OF BANKS REGISTERED IN BELGIUM (END OF 2015) 17 BANKS UNDER FOREIGN LAW BANKS UNDER BELGIAN LAW WITH A MAJORITY FOREIGN HOLDING 20 99 BANKS UNDER BELGIAN LAW WITH A MAJORITY BELGIAN HOLDING 62 Source: Febelfin FIGURE 3: DISTRIBUTION OF 82 FOREIGN BANKS IN BELGIUM ACCORDING TO COUNTRY OF ORIGIN (END OF 2015) OTHER COUNTRIES 11 JAPAN 3 SPAIN 3 GERMANY 3 INDIA 4 UNITED STATES 4 UNITED KINGDOM 7 NETHERLANDS 12 LUXEMBOURG 13 FRANCE 22 08412216 0 24 Source: Febelfin FIGURE 4: INTERNATIONALISATION OF THE BANKING POPULATION (%, END OF 2014) 100% 80% 60% 40% 20% 0 84.5% ITALY SPAIN GREECE FRANCE SWEDEN IRELAND AUSTRIA FINLAND BELGIUM GERMANY PORTUGAL DENEMARK LUXEMBOURG NETHERLANDS UNITED KINGDOM Source: Febelfin 7 PRESENTATION OF THE SECTOR Belgian banks have 87 offices abroad, ranging from branch- es, banking and financial subsidiaries, representative offices and qualifying holdings in banks and banking institutions. 70% of them are based in the EU. FIGURE 5: GEOGRAPHICAL SPREAD OF THE 87 FOREIGN OFFICES OF BELGIAN BANKS (END OF 2014) 2 1 3 7 EUROPEAN UNION ASIA 13 NORTH AMERICA 87 OTHER EUROPEAN COUNTRIES SOUTH AMERICA 61 AFRICA Source: Febelfin ATM In Europe, only Portugal has a denser ATM network than Belgium, which has 1,304 ATMs per million inhabitants. FIGURE 6: NUMBER OF ATMS PER MILLION INHABITANTS (END OF 2014) AUSTRIA 1,021 GERMANY 1,037 EURO AREA 1,074 UNITED KINGDOM 1,074 SPAIN 1,086 BELGIUM 1,304 PORTUGAL 1,516 0 200 400 600 800 1,000 1,200 1,400 1,600 Source: Febelfin (Belgium) and ECB (other countries) 8 BELGIAN DIGITAL BANK NG TECHNOLOGIES BANK BRANCHES The number of bank branches in Belgium has halved over the past 15 years. There were 6,552 branches at the end of 2015, compared with 12,571 branches in 2000. FIGURE 7: NUMBER OF BANK BRANCHES 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 12,571 6,552 2011 2015 2012 2014 2013 2001 2010 2007 2005 2002 2004 2003 2006 2009 2008 2000 PROVISIONAL Source: Febelfin (Belgium) and ECB (other countries) REGISTERED ONLINE BANKING AND MOBILE BANKING USERS The number of registered online banking users has increased Mobile banking has increased exponentially over the past by a factor of 3.7 in ten years. There were 11.1 million regis- few years. There were 3.2 million registered mobile banking tered users in 2015, compared with 3.0 million in 2005. users in 2015. FIGURE 8: NUMBER OF REGISTERED ONLINE BANKING AND MOBILE BANKING SUBSCRIPTIONS (IN MILLIONS) 12 10 8 6 4 INTERNET 2 MOBILE 0 2011 2015 2012 2014 2013 2010 2007 2005 2004 2003 2006 2009 2008 Source: Febelfin To conclude, banks and clients increasingly have a digital relationship. 9 PRESENTATION OF THE SECTOR SECTION 2 DIGITAL BELGIUM According to a study carried out by consulting firm Roland FACTS & FIGURES Berger, the digital sector accounted for 3.2% of Belgian GDP in 2013. It generates added value of EUR 12.7 billion, em- ABOUT DIGITAL ploys more than 92,000 people and comprises around 17,000 businesses. FIGURE 9: KEY FIGURES OF THE DIGITAL SECTOR IN BELGIUM (2013) 2.6% OF GDP FLANDERS FLANDERS 47% 5,989 BRUSSELS 51% 47,153 63% 10,686 7.6% OF GDP BRUSSELS 43% 5,418 36% 33,530 WALLONIA 17% 2,893 3.2% OF GDP BELGIUM 1.4% OF GDP WALLONIA 12,707 10% 1,300 92,228 13% 11,615 17,087 21% 3,509 ADDED VALUE EUR MILLION JOBS FTE COMPANIES # X% SHARE OF THE NATIONAL TOTAL Source: Roland Berger (2015) In April 2015, Alexander de Croo, Belgium’s minister of the digital agenda, telecommunications and mail, presented the Digital Belgium action plan, which is available at www.digitalbelgium.be. 10 BELGIAN DIGITAL BANK NG TECHNOLOGIES Digital Belgium defines Belgium’s long-term digital vision With a highly targeted strategy and sustained efforts, Belgium and sets clear targets to improve the country’s position in is expected to be able to achieve three goals by 2020: this field. • A place in the digital top 3 in the DESI classification (see below) Digital Belgium is based on five cornerstones: • Formation of 1,000 new start-ups • Digital economy • Creation of 50,000 new jobs in a range of industries. • Digital infrastructure • Digital skills and jobs • Confidence in digital and digital security • Digital public authorities Digital technologies change our economy and our society at a steady pace. The digital revolution generates many opportunities and will be one of the main drivers of growth, job creation and wellbeing over the next few years. Alexander de Croo (Source: www.digitalbelgium.be) DIGITAL AGENDA FOR EUROPE (DAE) & DIGITAL ECONOMY AND SOCIETY INDEX (DESI) Adopted in August 2010, Digital Agenda for Europe (DAE) is Denmark earns the best overall score, followed by the one of the seven flagship initiatives of the Europe 2020 Netherlands and Finland. For the second successive year, strategy implemented by the European Commission. It Belgium was fifth in the 2016 European classification of the identifies ITC, especially internet, as the main driver of in- most advanced countries in terms of the digital economy telligent, sustainable, inclusive growth in Europe. “The Dig- and the digital society. ital Agenda aims to deliver sustainable economic and so- cial benefits from a digital single market, based on fast and Belgium’s best result came in connectivity (second best of ultra fast internet and interoperable applications.” 28 EU Member States). High-speed networks (at least 30 Mb/s) cover 99% of the territory of Belgium. 78% of Belgian The European Commission has developed the Digital Econ- households have a broadband subscription, three in four of omy and Society Index (DESI), a composite index to meas- those are fast broadband. ure the digital performance of 28 Member States. It is based on five criteria: Belgium is eleventh in terms of human capital. The report • Connectivity points to the low share of students studying science, tech- • Human capital nology or maths and laments the dearth of IT experts. • Use of internet • Integration of digital technology Belgian citizens are keen on internet services, searching • Digital public services for information, music, films, online games, video on de- 11 PRESENTATION OF THE SECTOR mand, social networks, internet telephony and more. Here, Belgium is advancing in public services, climbing from thir- Belgium has climbed from seventh to third in one year. teenth to tenth. 85% of administrative processes linked to a major life event can be completed online and 39% of the Belgian rose one place to fourth with regard to integration international users do so. of digital technology in business. The private sector is sec- ond in digital information sharing using business manage- DAE and the Digital Agenda Scoreboard are available at: ment software. E-commerce is growing but is still under- ec.europa.eu/digital-agenda/en/digital-agenda-scoreboard developed: a quarter of Belgian SMEs sell online, 13% to foreign customers. FIGURE 10: CLASSIFICATION OF THE 28 EU COUNTRIES ACCORDING TO DESI (2016) 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0.63 0.52 UE28 ITALY SPAIN MALTA LATVIA GREECE CYPRUS FRANCE POLAND SWEDEN IRELAND ESTONIA AUSTRIA FINLAND BELGIUM CROATIA ROMANIA HUNGARY DENMARK GERMANY SLOVENIA SLOVAKIA BULGARIA PORTUGAL LITHUANIA LUXEMBOURG NETHERLANDS CZECH REPUBLIC UNITED KINGDOM Source: European Commission FIGURE 11: BELGIUM’S PERFORMANCE BY DESI CRITERIA (2016) 1 CONNECTIVITY 5 DIGITAL 2 PUBLIC HUMAN SERVICES CAPITAL 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 EU AVERAGE AVERAGE OF COUNTRIES LAGGING AHAED BELGIUM 4 INTEGRATION 3 USE OF DIGITAL OF TECHNOLOGY INTERNET Source: European Commission 12 BELGIAN DIGITAL BANK NG TECHNOLOGIES SECTION 3 ensure the same information is available across the various channels (computer, tablet, smartphone, branch), but nev- ertheless they work hard on their digital competitiveness BANKING and spend a considerable amount of money in this field.