You might ask yourself “What relevance has banking in relation to computer science” The biggest competition/threats to traditional banking comes not from other banks, but companies like Google, Apple and Amazon. • 90% of consumer banking interactions are done through computers today. How do you think it looks 1 or even 2 years from now…? • Consumer Banking will be the next industry put out of business by tech, if banks are not able to adapt within the next 3-5 years. • The Race to zero - trading is done increasingly without human interaction in order to succeed in this transformation, we NEED young talent with your skills and ability.

1. Banking 2.0
Kirsten Nielsen,
Chief Project Manager, Capital Markets IT
November 2014

2. You might ask yourself “What relevance has banking in relation to computer
science”
• The biggest competition/threats to traditional banking comes not from other
banks, but companies like Google, Apple and Amazon.
• 90% of consumer banking interactions are done through computers today. How
do you think it looks 1 or even 2 years from now…?
• Consumer Banking will be the next industry put out of business by tech, if banks
are not able to adapt within the next 3-5 years.
• The Race to zero - trading is done increasingly without human interaction
In order to succeed in this transformation, we NEED young talent with your skills
and ability.
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3. The only difference to IT is that technology improves much faster
Working with Technology – the game has changed
3

4. The machines are coming
4

5. “It is not the strongest of the species
that survive, nor the most intelligent,
but the one most adaptable to change.”
Charles Darwin (1859)
5

6. Customer experience is key
6

7. Exponential growth results in faster and faster changes
Change in customer
expectations
Exponential
technology trends
Change in habits
and perceptions
Change in
requirements
Change in what
constitutes a great
customer
experience
New inventions
New business
models and
products
New approaches
to leadership
New IT roles
FUEL … RESULT
IN …
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8. Customer behaviour changes rapidly
driven by digitalisation
Quarterly data for Q3 2010 and Q3 2014 respectively
8

9. With new technology as catalyst,
customer demand is evolving fast
• 352m net bank log-ins
• 4m mobile log-ins
• Total Digital touch points*
395m
5 years ago
• Access to everything from
everywhere
• Increased customisation
• Unknown demands?
5 years from now
?
• 263 netbank log-ins
• 189 Mobile log-ins
• 471m Digital touch points*
= 64% increase from Q3
2010 to Q3 2014
Today
*Digital touch points includes Private
Netbank, mobile, voice recognition
telephone system (IVR), agent calls
and advisory calls/remote meetings 9

10. Agility and adaptability are key to success
New digital customer
demands
Capital efficiency
Cost per transaction
New players
Regulation
10

11. A strong foundation
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12. Nordea was created through a string of mergers
Pre-70
1970’s
1980’s
1990’s
2000’s
300 banks
80 banks
30 banks
4 banks
1 Nordea
12

13. Strong customer-orientated values and culture
Foundation: Profit orientation and prudent cost, risk and capital management
Great customer experiences It’s all about people One Nordea team
A Great European bank,
acknowledged for its people, creating superior
value for customers and shareholders
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14. Nordea is the largest financial services group in the Nordic
and Baltic sea region
11 million customers
- 8 home markets
- Approx. 10 million personal customers
- 520 000 corporate customers, incl. Nordic Top
500
Distribution power
- Approx. 750 branch office locations
- Approx. 7 million Netbank customers
Financial strength
- EUR 10.0bn in full year income (2013)
- EUR 669bn of assets (Q3 2014)
- EUR 29.8bn in equity capital (Q3 2014)
- AA credit rating
- Common Equity Tier 1 capital ratio
of 15.6% (Q3 2014)
EUR ~41.6bn in market cap
- One of the largest Nordic corporations
- A top-10 European retail bank
Nordea = Nordic ideas
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15. SEPA End-date
Securities Law
Legislation
FTT
Recovery & Resolution
for FMIs
Structural Reform
(Liikanen)
Shadow Banking
MiFID II / MiFIR
EMIR
Short SellingCSD regulation
PRIPs
Investor Compensation
schemes
Dodd-Frank Act
Living
Wills
Banking Union
Basel III
CRD IV / CRR
Leverage RatioAIFMD
UCITS V
Fundamental
Review of the
Trading Book
Bank
Recovery & Resolution
Directive
Long-term
Financing
Transparency
Directive
NSFR
Corporate
Governance
Data Protection
Deposit
Guarantee
Schemes
Payments package
(PSD II)
Volcker Rule
FATCA
Prospectus
Directive
Coherence of
legislation
“EU FATCA”
Solvency II
4th AML
DirectiveBank Account
Mortgage
Directive
Remuneration
MAR
& OUR CUSTOMERS
ELTIF
MMFs
Benchmarks
Regulation
IMD 2
IORP II
Credit Rating
Agencies
Regulation
Insurance
Guarantee
Scheme UCITS VI
MAD
Legal Entity
Identifier
SFT
transparency
Additional
derivatives
regulations
Margin
derivatives
for OTC
Approximately 50 banking regulations with substantial impact
on banks’ balance sheets and operations
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