SEB Digital banking Carnegie

Mats Torstendahl November 11th, 2014

SEB Retail ambitions

The corporate bank in Sweden

The modern relationship bank

Qualitative growth and profitability

2

Increased operating leverage in SEB Retail banking

Average quarterly income (SEK bn) Average quarterly expenses (SEK bn)

Average quarterly pre-provision profit (SEK bn)

1.6 1.7 1.6

1.5 1.4

Avg 2010 Avg 2011 Avg 2012 Avg 2013 YTD Q32014

0.5 0.9

1.2 1.6 1.7

Avg 2010 Avg 2011 Avg 2012 Avg 2013 YTD Q32014

2.2 2.6 2.8 3.1 3.2

Avg 2010 Avg 2011 Avg 2012 Avg 2013 YTD Q32014

3

Full service offering built on long term customer relations

Household mortgage portfolio Customer satisfaction

+0.1

+3.4

-1.9

+0.4

-1.2

Handelsbanken

Danske Bank

Nordea

Swedbank

Increase from 2013

SME full service customers, thousands

#1

#2

#3

#4

#5

Full-service offering Now also Traditional Life insurance Sweden

Private SME

Private full service customers, thousands

350370390410430450470

2008

2009

2010

2011

2012

2013

Q3

2014

+8,6 475

406080

100120140160

2007

2008

2009

2010

2011

2012

2013

Q3

2014

147 +7,8

4

Trends and facts – SME & Private

Importance of standardized payments in real time through all channels increase

Customers will be less loyal when a third party enters the value chain

Increasing Rules and Regulations

More complex fraud behaviours

User experience and simplicity will be crucial

Smart devices – everything will be connected

Trends in the banking

industry

5

… and the digital impact on the banking world continues

Simple and automated digital services

Third party entrants

Transition from desktop to mobile

Standardized infrastructure in market

Increasing e- and m-commerce

6

Sophisticated data

Accessibility, brand and trust

Infrastructure & Changing partnerships

Transparency and simplification requires products and services that you would buy yourself

Fully digitalized processes

Cor

pora

tes

Priv

ate

SEB digital strategy Examples of digital relationship building initiatives Digital relations

My pictures My memories My savings goals

1. Make it mine

Fast Smart Always there Simple Easy

”You know so much about me, why don’t you help me? ”

2. Simplify my life

3. Do my thinking

7

Continuously investments in customer interfaces Internet Bank – SMEs

… and mobile usage still increasing

Customer partnerships

+

SME Payments

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,0009,000,000

Mobile Private

Desktop Private

Desktop Corporate

Mobile Corporate

Monthly visits

8

New SEB channels C&I Online

Internetbanken Privat

Internetbanken Företag

Online Trade Finance

9

SEB's public websites are ONE web

10

Fast

Smart

Overviewing Helpful

Always with you

Simplify my life/business Value added services that simplifies our customers lives

11

Overview Current and past

Future

Financial control

Customer Need

Payments Lending Savings Insurance Banking services

Can I afford a sailing boat?

What happens if I lose my job?

Can I manage when I retire?

What did I spend my money on?

What is the risk on my portfolio?

Help my thinking - From digital self-service to digital relationship banking

12

Digitization drives operational efficiency and enables customer centricity

13

Efficiency = Complexity reduction Back office process efficiency

Fewer errors and less risk

Improved customer data

Lean and agile organization

Enhanced governance

Enables link to customers’

IT-structure

Key take away on digitalization

Relationship banking 2.0

Availability will be crucial

14

Digital processing drives efficiency

Cybercrime…

Flexibility to meet future demands