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Nordea taking the next steps in Sweden Investor lunch Anna - - PowerPoint PPT Presentation
Nordea taking the next steps in Sweden Investor lunch Anna - - PowerPoint PPT Presentation
Nordea taking the next steps in Sweden Investor lunch Anna Storkers 2018-05-23 External forces drive change New regulation Change in competition + & Change in customer behaviour Technology and expectations 2 Nordea is on a
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Nordea is on a transformational journey
Illustrative timeline
2015 - 2017 2018 - 2021 2021 -
1 2 3 RAMP UP EXECUTION OPTIMISATION Success factors
- Simplification
- Compliance & Operational Risk
- Technology & Infrastructure
- Balance Sheet
- Distribution/Channels/Service model
- Products & Digital offering
- Technology & Operations
Future relationship bank
RAMP UP (2015 – 2017) EXECUTION (2018 – 2021) OPTIMISATION (2021 - ) 1 2 3
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Sound credit risk profile and maturing processes on compliance and conduct risks
Conduct risk – high attention and maturing Operational and compliance risk – stabilised Credit risk well diversified across the Nordic countries
Total lending in Personal Banking1
Focus on investment advisory Know Your Customer remediation
1) Q3/2017. Baltics excluded.
Sweden Denmark Norway Finland
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Re-domicile will bring level playing field
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Easy to deal with Relevant and competent Anywhere and anytime Where the personal and digital relationship makes Nordea my safe and trusted partner Customers drive our vision
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Four distinct offerings drive top-line growth and focus
Consumer Banking Affluent Premium Young potential Everyday Banking Homeowner
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Continuously improving C/I ratio
Income ~ +3 % p.a. C/I-ratio % Low 40’s Costs ~ -2 % p.a. Personal Banking C/I ratio projection
Planned Actual
Illustrative 56
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Locations
- 45%
- 68%
Locations with cash Q4 14 Q1 18 Q4 17 Mobile transactions Mobile logins +71% +70% Q1 18 Q1 15
Branch locations Mobile banking
[‘000]
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Customer behaviour and attitude is changing
Customers F2F preference* Number of branches Mobile banking [‘000]
*McKinsey survey 2016
Branches
- 45%
- 68%
Branches with cash Q4 14 Q1 18 Q4 17 Mobile transactions Mobile logins +71% +70% Q1 18 Q1 15 10% 20% 40% Transactions Non-complex advice Complex advice
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Transforming distribution to enable anywhere and anytime
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Share in mortgage centre and # FTEs
4 5 8 13
2 4 6 8 10 12 14 Sep 16 Dec 16 May 17 May 18
Number of online units
10% 15% 19% 20% 60 60 65 65 20 30 40 50 60 70 0% 5% 10% 15% 20% 25% Sep 16 Dec 16 May 17 May 18
Branch approach
- Urban: Consolidation into larger units
- Rural: Moved advisors to close by branch or Satellite branches
- Fewer cash branches/automise through ATMs and Swish
- Local presence for F2F customers and new customer acquisition
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Increased access to qualified advice
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Development of online units
- 12 units
- National pool of advisors
- Generous opening hours
2015 2016 2017 2018
# advisors (FTE)
- Efficient centralised process
- National pool of advisors
- Generous opening hours
Centralised mortgage centre
2016 2017 2018
Share of mortgages in mortgage centre
- All advisors conduct online meetings
- Advisors in rural branches work in national pool
- f advisors
2014 2015 2016 2017 2018
Share of online meetings Broad competence to serve customers remotely
106 20% 40%
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- High competence in savings
- Proven our ability to be at the top:
2014-2017 no 1 or no 2 in the market
- Increasing sustainability focus in our pension
- ffering
Relevant and competent: strong affluent offering
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Acknowledgements
- 1st version of Savings Robot “Nora” was
launched in March
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Movements in the mortgage market and value proposition
Market development Risk based price model implemented Continued development of the offering
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New entrants
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Agile development teams to speed up customer deliveries
- Agile development organisation in place
- Agile teams have delivered
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Increasing value to customers through mobile offering and partnerships
Mobile banking app screen represents a beta version
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Aggregated
- pen banking
services Global wallets Local providers Online and face-to-face meetings Mobile as entry point to all services Chat, chatbots, calls – 24/7
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- New proactive initiatives
- Focus on insights from our customers
- Increase the quality at all customer touchpoints
- Gain loyalty
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Increasing customer satisfaction is our top priority
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