Vision and strategy

Service leadership

In just a few years, Swedbank has grown from a Swedish bank with an international presence to an international financial institution with a Swedish base. Our aim is to be a service leader in all our markets.

Vision

Swedbank shall be the leading financial institution in its home markets. By leading we mean:

  • the highest customer satisfaction
  • the best profitability
  • the most popular employer.

Business concept

By understanding and acting on their needs, Swedbank can offer customers the best financial solutions and thereby improve the quality of their lives.

In this way, Swedbank can continuously increase its market value and play a positive role in society.

Values

Swedbank believes that its strong results and growing international recognition are the product of a performance-oriented culture, transparent communication, a willingness to change and the strong commitment of our employees.

The Group’s values are:

  • Results-oriented – we want to achieve good results
    in everything we do
  • Open – we are transparent and open in our communication
  • Innovative – we are willing to learn new things and to
    change
  • Committed – we work together to build a sustainable
    business.

Strategy

Large customer base and broad distribution network

Swedbank seeks large customer bases, long-term customer relationships and high market shares in its home markets.

Customer relationships and distribution of financial services are strategically more important than whether all the services originate and are managed in-house. Mutual funds, property insurance, and debit and credit cards are among financial services from other suppliers than Swedbank, which is offered to Swedish customers.

Sales and customer service are provided at branches, by telephone, on the Internet and through ATMs, making Swedbank highly accessible, with a widespread local presence. Distribution is bolstered through co-operation with, among others, savings banks and franchises of Swedbank Fastighetsbyrå (real estate brokerage), Swedbank Juristbyrå (legal services) and Swedbank Företagsförmedling (company sales), as well as various types of collaboration with suppliers and brokers.

Home markets and supporting presence

Swedbank currently has four home markets – Sweden, Estonia, Latvia and Lithuania – where all customer segments are served through an extensive retail network, providing custom-
designed, easy-to-use financial services at competitive prices. In addition to conventional banking and financial services, the offering includes advanced business services, capital market services, asset management and insurance.

Swedbank’s aim is to establish more home markets, of which Ukraine and Russia have the highest priority.

To support business in its home markets, Swedbank has expanded into neighbouring markets such as Finland, Norway and Denmark as well as important financial centres such as the U.S., China, Japan, Luxembourg and Spain. A limited expansion among local customers is under way in some of these markets.

Growing internationally and profitably

Swedbank’s aim is to grow. Long-term profit growth is a higher priority than increasing business volumes and market shares.

Resources are continuously reallocated to geographical markets, customer segments and product areas with the greatest long-term growth potential.

Satisfied, loyal customers and motivated employees pave the way for profit growth.

Low risk

Swedbank maintains a well-diversified loan portfolio with a low risk profile. This is achieved primarily through a large number of customers spread across different industries, low risk concentration and increased geographical diversification. Low risk is also achieved through lending based on solvency and collateral.

Decentralized decision-making and local presence

All business operations are conducted locally with decentralized decision making as close to customers as possible. Local organizations with customer and lending responsibility are supported by shared product, decision-support and control systems.

Competence

As a knowledge and service company, Swedbank knows that its employees are its most important competitive advantage. Significant resources are invested in staff training.

Cost efficiency

Cost efficiency is achieved through large customer bases and business volumes, co-ordination and efficient processes.

Market position – service leader

Swedbank wants to be perceived by customers in all its markets as a service leader.

All customers should perceive Swedbank as:

Accessible

We are open literally and figuratively. It should always be easy to contact us regardless of the channel, and we should always greet customers in a friendly way. The customer should always feel welcome.

Uncomplicated

Financial services can be complicated, but our customers should not feel apprehensive. Our job is to help them and make things easier. The products and services we offer should always be based on customer needs and be easy to use and understand.

Proactive

As a service leader, we are always proactive. We take the initiative and offer a wealth of financial advice in addition to new products and services. We are constantly working towards improvement.

”One Swedbank” The One Group Change Program was established in 2008 to improve co-ordination, efficiencies and sharing of competencies within various parts of the Group.

To date, efforts to co-ordinate Swedbank’s operations in Sweden, the Baltic countries, Ukraine and Russia have focused on the goal that local operations share the same vision, values and overarching strategy. In 2008, a more intensive co-ordination stage began with the objective of creating an integrated Group, based on regional banking operations and a shared brand, a single organization and harmonized customer offerings. The new organizational structure creates well-co-ordinated, flexible product platforms that provide economies of scale, at the same time that sales are supported by efficient processes and more understandable customer offerings. The “One Group Change Program” is designed to create value through greater sales and cost efficiencies.

The goal of service leadership is the determining factor in Swedbank’s strategy. Operations must therefore be based on local market conditions, and it is vital that the banking operations have the flexibility to quickly adapt their offerings to customer needs at a competitive cost. A Group-wide product and service development organization will contribute to this by consolidating Swedbank’s collective competencies and resources to a shared platform. As a result, the number of independent processes and systems can be reduced.

The organizational changes being implemented to create stronger customer offerings at the same time improve cost
efficiencies. Moreover, risk control and monitoring are strengthened through greater transparency. The product areas that will initially be consolidated at the Group level are asset management, card issuance and processing, international payments and capital market products. Since these areas already work in similar ways throughout the Group, the measures needed to integrate the product organizations are not that extensive. In Baltic Banking, preparations were made in 2008 as a first step in co-ordinating certain functions and product areas between the banks in Estonia, Latvia and Lithuania.

Three Group-wide product organizations will be created: Swedbank Markets for capital market products, Swedbank Robur for asset management products, and Group Products for other products. The products that will initially be co-ordinated within the framework of Group Products are international payments and cash management, as well as card issuance and processing.