Baltic Banking

Priorities 2011

• Achieve a balanced customer base
• Meet new competence needs
• Improve the functionality in the electronic channels

In 2011 the focus was on developing a more customer centric business model based on long-term, full-service relationships. Although the strategic priorities affect the entire business area, each country has specific goals and challenges. In Estonia, the goal is to retain a strong market position and remain profitable. In Latvia, the challenge is to achieve a better balance between deposits and lending as well as win a larger share of customers’ business. Efforts are also being made in Lithuania to meet more of customers’ financial needs as well as promote the use of electronic channels and reduce cash handling.

Towards a sustainable customer base

Baltic Banking has worked actively to achieve a long-term sustainable balance in the customer base. We have shrunk in areas where we felt we were overrepresented, while we have strengthened our positions in specific segments in Latvia and Lithuania by acquiring new external customer portfolios. Through a new customer service model that reflects customer demand for all types of banking services, we are winning a larger share of our customers’ business.

New customer service model means new competence needs

The new customer service model, which focuses more on advisory services, represents a new approach and requires different skills from the bank’s employees. In 2011, 1 400 advisors, customer service representatives and line managers participated in training programmes to meet these new competence needs. Measures that gradually shift decisionmaking authority closer to the customer will continue.

Improved service in electronic channels

To accommodate changes in our customers’ behaviour and needs, we have improved functionality and service in the bank’s electronic channels. During the year, for example, a new tool for advice and budget planning was launched in the Internet Bank.

Swedbank as an opinion shaper

We continued to work closely with the Estonian, Latvian and Lithuanian governments, central banks and capital markets during the year to promote financial stability and increase confidence in the region. Building strong relationships with various stakeholders in society remains a high priority.

New head of the business area

Birgitte Bonnesen was appointed as head of the business area in August.

Priorities 2012

Baltic Banking will continue next year as well to strengthen its customer-oriented business model based on long-term, full-service relationships. In upcoming years the bank will review its distribution and service model to enable shift to the next-generation banking model. This will be based on effective electronic channels for basic banking services such as transactions, sales and certain types of advice, thereby allowing the branches to be used mainly to advise customers with more complex needs. New capital requirements from Swedish authorities will also affect the Baltic banking market.