Unique transformation in the financial industry taking Nordea to the future Retail Banking: Europe, Amsterdam

Transcription

1 Unique transformation in the financial industry taking Nordea to the future Retail Banking: Europe, Amsterdam Jukka Salonen, Chief Portfolio Officer / Head of Simplification Programme 15 November 2017

2 Nordea has the largest financial services platform in the Nordics Nordea at a glance 11 million customers 10 million household customers 540,000 corporate & institutional customers Operating in the 10th largest economy in the world Distribution power through 600 locations and 7 million Netbank customers Nordic region Nordea Group Market position Corporate & Institutions Households #1 #1 Created through a string of mergers From the start: Around 300 banks 1970s: 80 banks 1980s: 30 banks 1990s: 4 banks Strong financial position 2017: Nordea EUR 10bn in full year income (2016) EUR 615,3bn of assets (Q3 2017) EUR 32,3n in equity capital (Q3 2017) Common Equity Tier 1 Capital ratio of 19.2% (Q3 2017) Norway Sweden Finland One operating model One legal structure Unique diversification Proven business model ~ EUR 46,3bn in market cap One of the largest Nordic corporations Denmark A top-10 universal bank in Europe 2 Source: Nordea Annual Report 2016 and Nordea Second Quarter Results 2017

3 Banking transformation Digital Easy CX Management Customer Journeys Enterprise Agile Agile Virtual Trust Fintechs Open Banking Relevant Channel Integration Ecosystems Personalisation Flexible Workplace Innovation Speed Crowdsourcing New Skills Capabilities PSD2 APIs Cost Efficiency Regulation GDPR Robotics Cultural Change Core Banking Platforms Platform Banking Compliance One Operating Model Machine Learning Simplification AI SIMPLIFICATION DIGITAL CUSTOMER EXPERIENCE NEW PARTNERSHIPS NEW WAYS OF WORKING AGILITY EFFICIENCY AI & ROBOTICS HUMAN TRANSFORMATION REGULATION 3

4 Our ambition is to be the Future Relationship Bank We need certain key attributes alongside an all-pervasive customer focus + = to become the Future Relationship Bank EFFICIENT AND SCALABLE Cost competitive + Reduction of complexity Customer satisfaction primary driver in everything the bank does Easy to deal with FAST AND AGILE Meeting evolving customer needs + Acting on business opportunities and treats RESILIENT AND COMPLIANT Balance sheet robustness + Adapting to changing regulatory environment Outside-in perspective creating customer focus across organisation Enables bank to innovate and stay relevant Anywhere and anytime Relevant and competent Stable and trustworthy 4

5 Fast and agile positioning the mobile in the center Online and face-to-face meetings Aggregated open banking services Chat, chatbots, calls 24/7 Global wallets Mobile as entry point to all services Local providers 5 Mobile banking app screen represents a beta version

6 Future operating model Where simplification is a key enabler with robotics and AI playing a significant role Relevant Personalised CUSTOMER FACING INTEGRATION LAYER DIGITAL ENGINE Easy Nordea Mobile Digital services Simplified platforms Fintechs Partners AI Robotics APIs Machine Learning Well structured Agile Reliable Data Core Banking Common products Common E2E processes Partners Payments Group Common Data Customer Data Trust Anything, Anytime, Anywhere Innovative Cost effective End-to-end automated common processes Scalable 6

7 We have already come along way building the capabilities and foundation for change Success Target Picture Start from scratch Acceleration Breakthrough Basic modules delivered Full scale simplification Initial Simplification 70% products reduced 3,6 m IDs cleaned Basic ramp-up 600 people 30 nationalities First deliveries: Savings Pilot SEPA Interbank in 7 countries Building up capabilities cross the bank 1000 people 35 nationalities Big deliveries: Savings Finland SEPA Interbank finalisation Delivery engine in place Entire bank to support transformation Basic modules for core banking and payments delivered Local DWs closed More complex product migrations Business to own the new capabilities and to move simplification further Decommissioning of legacy to be continued over

8 Building blocks to Nordea s transformation No business transformation without human transformation Culture Operating Model Digital Collaboration Passion Courage Compliance Simplification Ethics Ownership 8

9 Thank you! Jukka Salonen, Chief Portfolio Officer / Head of Simplification Programme jukka.salonen@nordea.com 15 November 2017