Liveblogging the 2019 Nordic Innovation Conference (10): “Keynote: Are Banks Becoming Software Companies?”

Casper von Koskull, President and Group CEO Nordea Bank (bank pronounced “Nór-day-a” largest bank in the region, a Nordic bank formed from mergers of a number of regional banks; now 19 years in present incarnation)

  1. Change is theme; megatrends: globalization, urbanization, changing demographics, especially aging of population, climate change, technology
  2. Urbanization, reaching populations, key challenge; rural areas may be more risky, if not sustainable regions
  3. Key drivers in technology: mobility; “everything is being designed around the smart phone” it is our “local branch”; AI, Cloud, changing technologies
  4. Changing competitive landscape, globally, Chinese in particular
  5. Changing customer expectations
  6. How will banking look like, in coming years, 5 or 10 years out; what kind of bank do you want to run; fundamentally, we do not know
  7. So what do we do? Applies in most industries: 7.1 we need to be more resilient (gives you staying power; technology plays a big role) + 7.2 increase agility = Strategic Optionality (so we don’t need to know future; we have staying power and agility)
  8. Technology also helps you become more agile
  9. “We need to rebuild our engine room” (many bank systems worldwide are decades old)
  10. We also have to change the way we address our customers
  11. Thirty percent of our advisory meetings are on Skype; most of our mortgage services are after hours (so can interact with whole family
  12. Five elements: 1. Be easy to deal with; 2. Anywhere, anytime; 3. Relevant and competent; 4. Digital, but also Personal; 5. Safe and trusted
  13. Shows slide of “Our Strategic Vision”; 3 unique things in a bank: people, culture; data; + balance sheet (Nordea, 600B Euros; plays a role in being trusted)
  14. What six things to be good at: 1. Customer experienece 2. Analytics 3. IT management; 4. Partnerships (future of banking); 5. Risk Management (traditional bank competency); 6. People Management (if people are key, people management is key to key)
  15. “Our digital transforming is about improving the customer experience”
  16. In Sweden, account-to-account payment via mobile now used more than credit cards, and more use than cash, which use is declining; 98% Swedes have mobile ID for services, for example government services
  17. “We care for something bigger: We take responsibility for the climate; We want to do what is right; We impact societies.”
  18. 130 largest banks have balance sheet of 21 trillion Euros; how to leverage this resource
  19. Nordea has green bonds; green loans
  20. “Acting sustainably not only right thing to do, but smart thing to do”

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