Nordea’s digital savings adviser Nora shows promising results

Maria Nikolova

Nordea says 70% of its customers in Sweden who started to save through Nora have not previously saved with the bank.

When Nordea Bank AB (STO:NDA-SEK) first announced its plans to launch a web-based robot advisor last year, the announcement was overshadowed by the news that the digital transformation of the bank will involve significant job cuts. Casper von Koskull, President and Group CEO, said back then it was time to enter the next phase of the transformation, involving bringing down costs and increasing efficiency.

“This transformation requires a shift in competence among our employees. Additionally, in order to secure long-term competitiveness, we also plan to reduce the number of employees and consultants with at least 6,000 of which approximately 2,000 are consultants”, Casper von Koskull said.

But the digitalization of Nordea’s business apparently has a bright side too. It does show good results. Earlier today, the bank posted its financial report for the first quarter of 2018, with Nordea’s CEO updating on the new technology adoption at the bank. He noted that the bank launched its digital savings adviser Nora that provides customers with digital savings advice 24/7. In terms of numbers, he said that 70% of the customers in Sweden who started to save through Nora have not previously saved with Nordea.

So, it appears that the artificial intelligence (AI) push of Nordea does deliver.

Nordea is not the single bank to bet heavily on AI for servicing its customers. In a speech given on Tuesday, April 24, 2018, Herman Gref – CEO and Chairman of the Executive Board of Sberbank, said that 98% of the Sberbank decisions for extending loans to individuals and 30% of the decisions for providing loans to business entities are taken by AI.

This, of course, raises concerns about job losses at the Russian bank too. Let’s recall that in June 2017, Mr Gref said the number of employees in back office roles at the bank will be reduced 12 times by 2021, with the use of robots being one of the factors for the jobs trimming.

In its report for the first quarter of 2018, Nordea underlined other aspects of its commitment to new technology development. Nordea has joined the we.trade consortium as founding partner. The consortium is, in conjunction with IBM, developing a platform based on distributed ledger technology (DLT) that aims at making domestic and cross-border commerce easier, safer and more efficient for companies.

Read this next

Digital Assets

CFTC Charges Binance and Its Founder, CZ, with Willful Evasion of Federal Law

The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Changpeng Zhao and three entities that operate the Binance platform with numerous violations of the Commodity Exchange Act (CEA) and CFTC regulations.

Institutional FX

Macau announces MCEX exchange for institutional exposure to China’s micro and small businesses

One issue that can’t be overlooked, however, is how transparent can these cash flows be, given the reality of parallel economies in micro and small businesses. 

Digital Assets

Sphynx Ink and OpenSea Partner for “Winkles & Flam” Digital Collectibles

Sphynx Ink Inc. is launching Winkles & Flam, the first cartoon duo in the web3 space, with original hand-drawn art and educational content focused on video game history.

Industry News

Titanium Blockchain CEO sentenced to 4 years in prison for $21m crypto scam

He did not use the invested money as promised but instead commingled the ICO investors’ funds with his personal funds, using at least a portion of the offering proceeds for expenses unrelated to TBIS, such as credit card payments and the payment of bills for his Hawaii condominium.

Industry News

First Citizens acquires Silicon Valley Bank’s deposits and loans

Technically, First Citizens is acquiring Silicon Valley Bridge Bank, National Association, an entity created by the FDIC following the closure of Silicon Valley Bank by the California Department of Financial Protection and Innovation.

Industry News

FXDD named “Most Transparent Broker – Europe” for 2022

Continuing its winning streak, leading brokerage firm FXDD has won the “Most Transparent Broker – Europe” award – granted by the ForexRating.com Awards 2022.

Industry News

The UTIP has launched a reseller program, opening new opportunities to maximize profits

The UTIP Technologies Ltd.  is underway to launch a reseller program. A purpose of the program is to attract new partners, boost a brand awareness and create a unique offer for forex brokers. This allows the reseller to buy and integrate attractively priced UTIP products with their own solutions and expand a range of products for their clients.

Technology

Fxview Sheds Light on Technology Enablement

Traders gain control over their activity and capital with low-latency execution.

Digital Assets

Haru Invest secures EU passport via VASP license in Lithuania

“Haru Invest has been growing stronger than ever, even during the volatile market situation, so we are very keen on crypto regulations. Obtaining a VASP registration is one of many milestones for our company, and it will help build trust in the crypto industry for our members by providing secure and compliant digital asset management services.”

<