Stakeholder engagement

Customers

The voice of our customers, their experience and satisfaction are our chief priority. We therefore carry out regular customer service surveys to ensure that we can do even better. One of the questions we ask is how likely is it that our customers would recommend us to others. We also measure how satisfied our customers are with the service they receive in the branches and with other aspects of the Bank’s service. In 2018 we looked at things such as how satisfied customers were with the customer onboarding process, taking a car loan or getting pension advice. The results of these surveys are used to develop and improve our services.

We deal directly with our customers in our branches, the call centre, and at our headquarters, and we keep a record of all ideas and suggestions we receive and carefully go through them. In 2018 we recorded 28,739 ideas and suggestions from our customers and we have listened to the voice of our customers to enhance our services.

Our employees regularly visit our corporate customers. These visits give us the opportunity to find out how to take our service up the next level, what our customers want to focus on and how we can meet their needs.

Our goal is to be the leading digital bank in Iceland, to make digital products and services more readily available and therefore make banking more convenient for our customers. The Arion App, Online Banking and our website are service channels which are open 24 hours a day, 365 days a year, anywhere, anytime. The App now has close to 70,000 users, up 20% on last year, and surveys reveal that the Arion App is considered the best banking app in Iceland. Customers can also post questions and make suggestions on the Bank’s Facebook page and our employees respond as quickly as possible.

Our goal is to be the leading digital bank in Iceland, to make digital products and services more readily available and therefore make banking more convenient for our customers.

By installing video conferencing equipment at our branches and headquarters we have enabled approximately 20,000 meetings between customers and financial advisors. 97% of our contact with customers is now through digital channels. In the last few years we have developed and marketed 19 new digital solutions which have our customers have been quick to adopt. We have also launched a new type of branch, where the focus is on helping our customers learn how to use the Bank’s digital service channels. We get our customers to test the new digital solutions before they are launched, and this collaboration is an important component of the development process.

Human Resources

In the last few years, lean management has been implemented throughout the Bank. The employees now have daily morning meetings with their teams to discuss the tasks ahead and how the previous day went. These meetings also address service to customers, suggestions and positive feedback are passed on and there is a keen focus on continuous improvements. The target is for each employee to record at least 8 improvements a year. This was achieved in 2018 when the average number of recorded improvements was 9.45 per employee. We have also started holding monthly feedback sessions with employees and all employees also have a performance appraisal interview once a year.

The target is for each employee to record at least 8 improvements a year. This was achieved in 2018 when the average number of recorded improvements was 9.45 per employee.

Every month a digital survey is sent to employees, which includes questions on their well-being and opportunities to develop in their jobs. The response rate is generally good, and on a scale from 1-5 the average score in 2018 was 4.36.

The annual Arion Bank Day brings all the employees together in one place. The theme in 2018 was the future and convenient banking and employees were given the chance to come up with questions and ideas using a special app.

Society

Arion Bank takes an active role in our society and its development and has played an important role in the regeneration of the Icelandic economy, not least in the rebuilding of the Icelandic stock market. We participate in a number of projects and events in the community and support a range of companies and people to make a positive impact on society. Arion Bank is a major company by Icelandic standards and our commitment to sustainability does not just call for responsible business practices but also concerns the impact of our activities on society and the environment.

In late 2017 the Bank became a signatory to the United Nations Principles on Responsible Investment (UN PRI). In 2018 Institutional Asset Management at Arion Bank set out to map and analyze all companies listed on the main market of Nasdaq Iceland with respect to reporting on sustainability. This analysis is a component of responsible investments and measures the performance of listed companies and the market as a whole in terms of sustainability. Employees subsequently met representatives of the companies and had constructive discussions on the state and progress of issues relating to sustainability. The Bank is thereby seeking to inspire the market to improve non-financial reporting and promote sustainability at listed companies.

In 2018 Institutional Asset Management at Arion Bank set out to map and analyze all companies listed on the main market of Nasdaq Iceland with respect to reporting on sustainability.

During the second half of 2018, the Bank introduced new credit rules which require sustainability to be taken into account as far as possible when evaluating loans.

The Bank is dedicated to supporting the Icelandic business sector and has actively supported innovation and it has helped to set up two business accelerators, Startup Reykjavík and Startup Energy Reykjavík, where entrepreneurs are given the opportunity to develop their business ideas. The Bank has invested in the venture capital fund Eyrir Sprotar and supported innovation at primary and secondary level schools across Iceland.

Arion Bank has worked closely with the innovation company Klappir Green Solutions on mapping the Bank’s environmental impact since 2015. Klappir specializes in developing and implementing environmental software which helps companies, local authorities and the government respond to the increasing challenges of climate change. Klappir is now listed on the First North market on Nasdaq Iceland and Arion Bank arranged the listing.

In addition to providing backing to the Icelandic business sector and innovation, Arion Bank organizes a whole range of seminars and other events on topics including the economy, financial literacy, pensions, and art and design. Arion Research provides in-depth analysis of the Icelandic economy, hosts meetings and publishes its research in reports.

In 2018 Arion Bank employees participated in numerous conferences both in Iceland and abroad, either as speakers, participants in panel discussions or as general participants contributing to the public discourse on a whole range of topics.

Arion Bank evaluates the impact of its suppliers on the environment and equality and factors this into the buying process.

Shareholders

In 2018 Arion Bank was listed on the stock markets in Iceland and Sweden. The main venue at which the Board and the Bank report information to the shareholders and propose decisions is at legally convened shareholders’ meetings. The Bank provides an effective and accessible arrangement for communications between shareholders and the Board of Directors between those meetings. Any information sensitive to the market is released through a MAR press release. Arion Bank also arranges quarterly meetings where the CEO, CFO and Investor Relations present the interim financial results.

Surveys

Our customers are a diverse group of people and companies and we use surveys to find out what matters most to people. The environmental survey conducted by Gallup in January 2019 revealed that 67% of respondents had concerns about the consequences for climate change for them and their families. The survey also showed that 86% of people believe it important that companies take positive action on the environment and climate change. In particular, people want companies to increase efforts to recycle and sort waste, then to reduce pollution or carbon offset, and then to reduce the use of plastic, cardboard and packaging.

We are well aware of these concerns and Arion Bank fully intends to play its part and be a role model in environmental issues. See the sections on environmental issues and non-financial information for more information on what measures have already been taken.