We need to regain customers’ trust
People do not trust banks the way they used to. Financial turmoil and economic recession have created a general – and reasonable – perception not only that banks are part of the problem but also that they should contribute to the solution. Danish banks have generally paid a heavy price for the financial crisis. They have seen heavy losses on loans, and funding in the international markets has become more expensive.
The bank bailout packages gave Danish banks better conditions for managing the crisis. Danske Bank therefore supported the various initiatives agreed upon by a wide majority of the political parties. But there is a common misconception that the bailout packages did not cost the banks anything. Danske Bank alone has paid more than DKK 9 billion to cover the losses of collapsed banks.
We know that, as a bank, we have a great responsibility, not only to our customers but also to society in general. We must look after money – our customers’ as well as our own. As the financial crisis has shown sound banks are necessary for the well-being of the national economy. And a financially strong bank is one that runs a sound business regardless of the economic conditions.
We are therefore introducing new standards for how we ensure that Danske Bank is a sound, profitable business. One area where we face a great challenge is personal banking. The approach we have taken to servicing personal customers thus far has led to a situation today in which many of them generate greater expenses for the Bank than income. We need to do something about this. In the future we must be better at offering customers the services they actually need. In this way, we will use our resources where they make the greatest difference, for both our customers and us.
New focus on customer relations at Danske Bank
In the future, to an increasing degree we will reward customers who do most or all of their banking business with Danske Bank. They will be offered more advantages and better advisory opportunities. Customers who have less business with us will also get an offer that addresses their needs, but they will manage their banking mainly through our online self-service solutions or over the phone. The new solutions will clarify our pricing structure by showing what things cost and what customers can expect from us.
Transparency is an important prerequisite for trust. Therefore, in the future, we will make it clear how we create value for customers, investors and ourselves. We will create transparency about our pricing structure and interest rates, and we will also work to make the credit-granting process faster and easier to understand. We are doing this because we know it is important for our customers to get a quick and clear response.
Introducing faster and clearer credit processes
In the future, our customers will experience that they get a quick and clear response.
Over the next three years, we intend to automate processes for up to 90% of our credit decisions for personal customers, for example for applications for car loans and home loans and for credit card orders. This will allow employees to work on more complex transactions, ensuring that all customers receive a quick response.