21-22 November 2017

Vienna, Austria

Focus 13: Danske Bank – Creating real impact and change with Continuous Improvement – by using it as a tool to work beyond the boundaries of shared servicesRosita Vasilkeviciute, Danske Bank and Dorthe Keilberg, Deloitte

Deloitte Shared Services, GBS & BPO Conference

CREATING REAL IMPACT AND CHANGE WITH CI - BY USING IT AS A TOOL TO WORK BEYOND THE BOUNDARIES OF SHARED SERVICES

Rosita VasilkeviciuteSVP, Group OperationsDanske Bank

November 2017

INTRO TO DANSKE BANK AND GSL

01

WE ARE A NORDIC UNIVERSAL BANK

Global Services Lithuania / GSL: 1300+ FTEs

Established in 1871

3.5+ million customers

18000+ employees

15 countries

Business Units:

• Personal Banking• Business Banking• Wealth Management• Corporates & Institutions

Serv ice Centers:

• India• Lithuania

Home marketOther markets

Danske Bank locat ions

4 YEARS OF GROWTH WHILE BUILDING COMPETENCIES AND ESTABLISHING GLOBAL TEAMS

1300+

professionals are part of various global teams across Danske Bank Group

September 2012

2015

November 2017

• Significant deliveries out of Group IT Lithuania

• Strong foundation built for Nordic Operations

• Focus on LEAN, Quality, Customer Experience

• From Service Centre to Global Teams

2014

2013

• First back office tasks moved from Denmark

• Rapid development and adoption of RPA, RDA& advanced analytics

2016

30

341

613750

1038

1300

2012 2013 2014 2015 2016 Today

GSL FTE growth

GSL: CHANGING THE OPERATING MODEL IN DANSKE BANK

CENTRALIZATION

HARMONIZATION AND

INTEGRATION OF SERVICES

Country based thinking Global functional mind-set

•Local standards

•Customer service varies

•Common standards

•Deliver service as one collective unit

Co

nti

nu

ou

s fl

ow

Custom work

Common work

Routine work

Straight-through

processing

Front line

Local back office

Centralized

back office

Automation

GSL: GENERATION Y EMPLOYEES ARE DRIVEN BY PURPOSE

28 yrs.

age average –90% belong to

Gen Y & Z

69%

female

31%

male

9 out of 10

have a university

degree

37%

with financial sector

experience

All

fluent in English

1

newcomer a day

21%

* Universum Survey (Danske Bank Group), 2016 December

CHANGING A BANK OF 150 YEARS

02

2013We launch MobilePay in Denmark and Finland. It is the first app on both markets to offer mobile payments

2010As the first bank in Denmark and Finland, we launch mobile banking apps for smartphones

2015We launch online platform for growth companies in Denmark, Norway and Sweden

2016WeShareapp launchedin Denmark, Norway, Finland and Sweden

2016Online investment solution aimed at making investments far more transparent and accessible

2016We offer customer and advisory services via chat

2015We offer digital signing in our online channels

2015We launch Sunday.dk, a new online home purchase platform

PRODUCT AND SERVICES INNOVATION AS ONE OF THE KEY ELEMENTS TO IMPROVEDCUSTOMER EXPERIENCE

2017We launch FinDash –future digital interfacefor all BB and C&I customers

2017New Pocket Money app introduced that helps parents and children in the Danish market keep track of children’s money

THERE ARE MULTIPLE COMPONENTS WITHIN OUR ECOSYSTEM AND EMERGING TECHNOLOGIES THAT WE ENGAGE IN DANSKE BANK INNOVATIONS AND SCALABLE FUTURE DELIVERY SOLUTIONS

RPA, RDA

People

Customers

IT Systems

Culture

BU’sRegulations

Partnership

Competence

Global set-up

eco-system

Disruptive

Innovation

Strategic change

programs

Continuous Improvement

|

DANSKE BANK’S APPROACH WHICH EMPOWERS EMPLOYEES, SUPPORTS INNOVATION AND FAST IMPLEMENTATION OF NEW IDEAS

Disruptive Innovation

Strategic change programs

Continuous Improvement

|

DANSKE BANK’S APPROACH WHICH EMPOWERS EMPLOYEES, SUPPORTS INNOVATION AND FAST IMPLEMENTATION OF NEW IDEAS

CI CULTURE SERVES AS BACKBONE FOR FUTURE INNOVATION

CI – A DAILY ROUTINE FOR

EVERYONE, FROM DAY ONE

VIRTUAL & PHYSICAL

INFORMATION CENTRES

ALWAYS UP-TO-DATE PROCESS

DOCUMENTATION & STANDARDS

PROCESS CONFIRMATION,

GEMBAS, PDCA CYCLES

RECOGNIZE &

CELEBRATE SUCCESS

LEADERSHIP

Disruptive Innovation

Strategic change

programs

Continuous Improvement

|

DANSKE BANK’S APPROACH WHICH EMPOWERS EMPLOYEES, SUPPORTS INNOVATION AND FAST IMPLEMENTATION OF NEW IDEAS

OUR RPA JOURNEY

Jul

Sep

Nov

JanMar May Jul Sep

Dec

RPA technology was introduced (de-centrally)

First robot was released

The initial RPA results were being centrally evaluated

2016

Project methodology, standards and QA

Maintenance and monitoring team

2015

Establishment of RPA CoE

CoE with 9 factories

2017

Nov

Continuous learning and improvementExploration of RDA solutions

2015: SELECTING THE RIGHT APPROACH

2016: RPA AS THE OPPORTUNITY FOR EMPLOYEES’ GROWTH & UPSKILLING

0

20

40

60

80

100

Jun Jul Aug Sept Oct Nov Dec Oct

No. of robots in Danske Bank Group, 2016 - 2017

2016 2016 2016 2016 2016 2016 2016 2017

2017: DEVELOPING SOLUTIONS TO CONSOLIDATE DATA FROM MULTIPLE SOURCES AND HANDLE UNSTRUCTURED DATA WITH THE HELP OF RDA AND AI SOLUTIONS

2016 2017 2017+

RPA (BluePrism)

RDA(Pega Robotics)

AI Solutions

Disruptive

Innovation

Strategic change programs

Continuous Improvement

DANSKE BANK’S APPROACH WHICH EMPOWERS EMPLOYEES, SUPPORTS INNOVATION AND FAST IMPLEMENTATION OF NEW IDEAS

FK.326 INNOVATION ACCELERATOR WITH BIG AMBITIONS IN REVOLUTIONIZING THE WAY WE DELIVER TO OUR CUSTOMERS

Think big, start small, scale fast

Burning desire Agile ways of workingCollaboration & co-creation

Success / learning storiesContinuous inflow of ideas Radical / innovative changes

03

MEASURING RESULTS AND CELEBRATING SUCCESS

BY ENGAGING PEOPLE IN ONGOING TRANSFORMATION, UP TO 20% OF GSL EMPLOYEES’ TIME IS SPENT ON INNOVATIVE PROJECTS AND DEVELOPMENT

“”

“”

FOCUS AND INVESTMENT INTO CI PAID OUT WITH REAL BUSINESS IMPACT AND ENABLED US TO WITNESS STRONG IMPROVEMENT RESULTS

8% of staff are trained

and certified in LEAN

TRAINING

900+ improvement

ideas generated, 450

implemented in 2016

GENERATING &

IMPLEMENTING IDEAS

35+ IT improvements

completed & 40+ robots

launched in 2016

IMPROVING THROUGH IT

~15% yearly productivity

improvement

EFFICIENCY

All leaders complete customer journey trainings

CUSTOMER ATTENTION

25% reduction of physical

printing and paper handling

SIMPLICITY

2323

NEVER FORGET TO

CELEBRATE SUCCESS!

ONE OF THE GREAT EXAMPLES:GO Awards (2016) in Group Operations

260nominees

(64% Lithuanian)

13global winners (23% Lithuanian)

53local winners (30% Lithuanian)

THANK YOU!