© Swedbank

Swedbank – our digitalization journey

Birgitte Bonnesen, Head of Swedish Retail Banking Lotta Lovén, Head of Channels, Swedish Retail Banking

© Swedbank – Online Banking Development

Our home markets Sweden Population 9.6m Private customers 4.1m Corporate customers 270 000 Organizations 66 000 Branches 314 ATMs 0* Cards 3.9m Employees 8 482 *ATMs are owned and operated by Bankomat AB

Estonia Population 1.3m Private customers 1.0m Corporate customers 130 000 Branches 40 ATMs 467 Cards 1.1m Employees 2 280

Latvia Population 2.0m Private customers 1.0m Corporate customers 87 000 Branches 48 ATMs 409 Cards 1.0m Employees 1 521

Lithuania Population 3.0m Private customers 2.0m Corporate customers 89 000 Branches 68 ATMs 521 Cards 1.7m Employees 1 953

© Swedbank – Online Banking Development

Customer-centric Delivery Model

3

Customer

Other

Guiding principles of this customer-centric model are:

• Channels are for customers, they support customer convenience

• Channels are segment neutral

• We are accessible in different channels and customers can choose solutions they prefer

• Channels are not competing, instead they complement each other

• Price is the differentiator

• Each channel and the whole channel network should be as efficient as possible

Social

© Swedbank – Online Banking Development

Automated offers as cornerstone for efficient offering

• Our competitive advantage is common IT solutions ensuring comparable data cross-border • Automated offers system enables to use big amount of customer data efficiently and target

customers more precisely and dynamically • We have a lot of potential for digital sale and service by making the right offering to customers

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Consumer Financing 54% Leasing 33% Mortgage 19% Life Insurance 26% Non-Life Insurance 12% Credit Cards 26% Term Deposits 9%

Share of sales (% of total sales) based on automated offers, Dec 2014 Optimizer

ChannelingWaves

Customer marketing profiles

Branch, Call

Centre

I-bank

E-mail

SMS

Paper mail

Data Warehousenon-aggregated data

Unica tool

Mobile appCustomer life cycle

events

Customer contact history and channel preference

Product life cycle events and propensity models

Follow up Measurement

ProgrammingDesign

Customer insight

Channel integration

Automated offers

Interaction

© Swedbank 5

What is our recipe for future success?

• A consistent omni channel strategy over the group • Full digitalization of basic banking, products and key processes • Development of best in class digital self service – equally for customer

and employee • Exploring customer data to generate value add, personlization and

effective sales opportunities

Customer satisfaction is key - we focus on customer interaction, service and experience – personally and digitally

© Swedbank

We have already started the journey

2014 2015

~ 700,000 activated

users!

Expense Control

First release of the new internet bank

Top Up – New services

2nd place Swedish Mobile bank apps

91 CSI

• Online Equity Trade 1995 • First Internetbank 1996 • First Mobile App 2009 • Mobile BankID 2011 • Swish C2C payments 2013 • Swish C2B payments 2014

Swish Highlights

© Swedbank – Online Banking Development 7

Removing the advisor/customer barrier

Advisor and customer

logs in together to review financial status

Customer can continue

to engage in personal finances anywhere

Our new digital bank - customer and advisor share engagement overview in same user interface

© Swedbank – Online Banking Development

Bring on modern ways of working - merging business and IT in Swedbank LABS

© Swedbank – Online Banking Development

To summarize – digital is the most important interface for our customers. We keep our focus there.

Sweden 61% use digital channels actively

In average the customers visit the Internet bank 9 times per month and the mobile bank 24 times per month

Baltics 63% use digital channels actively

In average the customers visit the Internet bank 13 times per month and the mobile bank 1 time every month

99% of payments through digital channels in both markets 40% of sales through digital channels in Baltics 80% of fund and 75% of equity trading through digital channels in Sweden 40% market share of Swish users in Sweden We have a digital relationship with almost 80% of the total market in Baltics 78% of Mobile users in Sweden use fully digital id-methods (+17% YoY)

Highlights