Our stakeholders
Our main stakeholders are the customers of Arion Bank, shareholders, employees and society as a whole. At Arion Bank we realize the importance of interacting with and listening to the differing needs of these groups and understanding what is most important to them. Positive and reciprocal relationships with our stakeholders are fundamental to the Bank’s activities and we define ourselves as a relationship bank.
.jpg)
Customers
The voice of our customers, their experience and satisfaction are central to our business. We therefore conduct regular customer service surveys to ensure that we can do even better. One of the questions 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 2019 we looked at customer satisfaction when people become customers of Arion Bank, take out a mortgage and get advice on pensions. 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, at our headquarters and we keep a record of all ideas and suggestions we receive and carefully go through them. In 2019 we recorded 22,990 ideas and suggestions from our customers and over the last few years we have prioritized listening to the voice of our customers in order 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. Customers can also post questions and make suggestions on the Bank’s Facebook page and our employees respond as quickly as possible.
The app now has close to 83,000 users, up 22% on last year and surveys reveal that Arion app has now been considered the best banking app in Iceland for the third year in a row. The app can now be used by anybody, whether they are regular customers of the Bank or not. Anyone with electronic ID can download the app, open accounts, start making regular savings and also view their accounts at other banks.
Further information on the Arion app
By installing video conferencing equipment at our branches and headquarters we have enabled approximately 24,000 meetings between customers and financial advisors. 99% of our contact with customers is now through digital channels. In the last few years we have developed and marketed 25 new digital solutions which our customers have been quick to adopt. The focus at our branches has been on helping and teaching people to use the Bank's digital channels. We get our customers to test the new digital solutions before they are launched, and this collaboration is an integral component of the development process.
We aim to improve the financial literacy of our customers and society as a whole. Better financial literacy fosters more responsible and better informed decisions by people and companies and a healthier economy. We offer a range of courses and seminars on different areas of financial affairs and we share our expertise with our customers on a daily basis. Arion Bank also employs numerous qualified financial advisors.
A new feature in the Arion app allows users to gain a unique insight into their finances, giving them a clear overview of incoming payments and outgoing expenses which are categorized automatically.
Human Resources
By creating a positive working environment we can retain and attract the best employees. Every month a digital survey is sent to employees, which includes questions on their well-being and opportunities to develop in their jobs. The average score on a scale of 1-5 was 4.41 in 2019, up slightly from 4.36 in 2018.
Every four months employees are asked about the balance between work and their private lives, and on a scale from 1-5 the average score is 4.33. The same survey addresses employees’ satisfaction with the state of equality at the Bank and the average score there is 4.06. A monthly feedback session for employees has also been introduced. Arion Bank has equal pay certification and complies with equality standard ÍST 85:2012 and has also been awarded the Ministry of Welfare’s equal pay symbol.
The target is for each employee to record and work on at least 8 improvements a year. This was achieved in 2019 when the average number of recorded improvements was 9.12 per employee.
Once a year all the employees meet for the Arion Day event and discuss the areas of focus for the coming year. The theme of the day in 2019 was “Financial services of the future” with a focus on society, investors, customers and employees.
Society
Arion Bank is a large company by Icelandic standards and the Bank’s social responsibility involves not only running a responsible and profitable business but also assessing what impact the business, i.e. loans and investments, has on society and the environment in which we work.
In all the decisions we make, we assess the various interests at stake, evaluate the possible gains and risks, with the long-term view being just as important as short-term considerations. Every year we collaborate on a wide range of exciting investment projects with our customers with the aim of strengthening the business sector in this country. Arion Bank has been involved in the majority of IPOs on the Icelandic stock market in recent years and thereby made an important contribution to the regeneration of the Icelandic stock market.
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. In 2019 the Bank entered into a partnership with the Fintech Cluster which runs an innovation centre and also organizes a range of events discussing fintech themes.
Further information on innovation at Arion Bank
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, art and design, and publishes research on the Icelandic economy. In 2019 Arion Bank employees participated in numerous conferences both at home and abroad, as speakers or as participants in panel discussions on a whole range of topics, including pensions, responsible investment, environmental issues, fintech and general economic issues. Interviews with employees and articles were published in Icelandic and international publications.
The Bank’s chief economist provides in-depth analysis of the Icelandic economy, hosts meetings and publishes research in reports. In 2019 three economic forecasts and reports on the housing market and the tourism industry were published.
In 2018 and 2019 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 social, environmental and governance factors. Employees subsequently met representatives of the companies and had constructive discussions on the status and progress of issues relating to these criteria. The Bank is thereby seeking to inspire the market to improve non-financial reporting at listed companies.
We aim to be a role model on environmental and climate issues and to minimize greenhouse gas emissions and the negative environmental impact of our activities. Banks perform a vital role in providing funding for progress and Arion Bank wants to be a force for good. The Bank intends to focus its attention on financing projects on sustainable development and green infrastructure, thereby supporting Iceland's targets and commitments under the Paris Agreement.
Investors – shareholders and bondholders
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.
Under the Bank’s funding strategy the Bank aims to be the leading issuer in Iceland, a position based on excellent relationships with investors, quality disclosure and solid credit ratings from the ratings agencies. Regular meetings are held with investors in bonds issued by the Bank.
All relevant market information is published in releases to the stock market and any information sensitive to the market will be released through a MAR (Market Abuse Regulation) press release. Arion Bank arranges quarterly meetings for market participants at which the CEO, CFO and Investor Relations present the interim financial results. In November 2019 the Bank also held an event for shareholders and market participants in London and Reykjavík at which the Bank presented its updated strategy and focuses for the medium term. The Bank plans to hold events like this every second year.
Investor Relations specializes in communicating with shareholders, analysts and other market participants.