One PlatformAn introduction to Danske Bank’s development and IT philosophy

Peter Schleidt, Executive VP, CIO, deputy COO

Shared Services Centre

Sven LystbækD. Peter Schleidt

ProgrammeManagement

Erik Andreasen

HR Human ResourceServices

John Bjørn Olsen

Retail & Logistics

Services

Kim Winther Petersen

Transaction Services

Mogens Søndergaard

Retail Solutions

Carsten Smith

Group Contact Centre

Henrik Olsen

Shared ServicesSweden

Johan Löfgren

Shared ServicesNorway

Asbjørn Bredesen

Business Controlling

Systems

Rune Petersen

Business InfrastructureSystems

Per Hviid

IT DevelopmentProcesses & Tools

Peter Rasmussen

Corporate Development

Arne Løcke

Pension & Insurance

Products

Jørn Chjeffer Rasmussen

Secretariat

Steen Hjort

Shared ServicesFinland

Tapani Koskinen

Consultancy Services

Charlotte Arnvig

IT Infrastructure &Service Management

Jan Steen Olsen

Shared ServicesIreland

Paul Black

Shared ServicesBaltic

Ege Malling

Digital BankingProgramme

Erik Møller Frandsen

Shared Services Centre- Organization

Sve

n L

ys

tbæ

kP

ete

r Sc

hle

idt

Danske Bank at a glance

• The largest bank in Denmark

• The second largest bank in the Nordic region

• Retail banking activities in Denmark, Sweden, Norway, Northern Ireland, Ireland, Finland, Baltic countries

• Multi-branded Group

• Strong growth, both organic and through strategic acquisitions

• IT does matter• Financial Services is one of the most digitalized industries• We compete based on our abilities of using IT to bring the

best products and processes to the market• IT is our production engine• IT development is our business development

Strategy: Focus on retail banking

One Platform – Excellent Brands

Single banking model based on autonomy in customer interface and firm structure in product creation and operational procedures

What is One Platform?

• Common concepts and shared best practices for all areas related to operate our banking brands, e.g.:

• Customer service concepts• Brand organisation (regions, branches, Finance Centres,

Staff Functions, job profiles etc.)• Relations between Group Head Office and Brand staff

functions• Products and product concepts, pricing models and advisory

tools• Channels and sales processes, including credit handling• HR and Communication policies, tools and concepts• Finance reporting, management models and management

information reports• Risk management models and compliance policies• IT policies, systems and structures

One PlatformMultiple benefits

• “One of everything” as a guiding principle

• ”One and only one way to carry through a given task” –standardisation based on best practices

• Global group functions including one Shared Service Centre

• One IT platform• One view of the customer in real-time

• 100% customer focus in brands• Stronger capabilities; quality through

best practice processes, competence through specialisation and differentiation through integration

• Improved efficiency; higher economies of scale through standardisation, specialisation and central execution, higher degree of STP from channel to execution

• Optimal integration platform; scalability synergies; new customer services

• Higher degree of long-term flexibility Better adaptability, since changes only has to be implemented once for the entire group

Branches Call centre Netbank ATMFinance

centresFilialer Call centre Netbank ATM

Finans

centre

Koncern Service Center

Products

FOREX

Bonds &

Equities

Treasury

LeasingLife &

Pension

Cash

Management

Mortgag

e

Credit

Asset

Management

Cards

Currency

Fees

Payments

Approvals

Customeroutput

Interests

Accounting

Core

OrganizationAccounts

Customer

Risk Dataware

house

Channels

Branches

Contact Centres

InternetFinance Centers

ATMs

Products

FOREX

Bonds &Equities

Treasury

LeasingLife &

Pension

Cash Management

Mortgage

Credit

Asset Management

Cards

Currency

Fees

Payments

Approvals

Customeroutput

Interests

Accounting

Core

OrganizationAccounts

Customer

Risk Dataware

house

One PlatformA Strategy of doing things the same way everywhere

Brands

One Platform - a journey since 1990

Important milestones

• 1991 One Bank – One System

• 1994 Multicurrency

• 1998 Netbank

• 1998 Intranet

• 2002 CRM

• 2002 Flexible Architecture

• 2003 Customer Packages

• 2004 Resilience

• 2005 Group Reporting

• 2006 CAD3/Basel II advanced

Östgöta Enskildain 2000 & 2002

Danske Bank Polskain 2003

Fokus Bankin 2001

Hamburg Branchin 1999

Danske Bank Intl. Lux.in 2003

BG Bankin 2001

London Branchin 1998

Northern Bank/National Irish Bank in 2006

Helsinki Branchin 1997

Sampo bankin 2008

Standardised IT and back office – But scope for local adaptation

Danske Bank Development & IT

• Part of Shared Services Centre• Combined Product, Process and IT

development• 2200 developers in multiple

countries • Domain areas• Consultancy Service + DCI• Foreign SSC’s

• One Development model (CMMI)• One Governance process• Open Architecture (SOA)• 70% IBM mainframe

• Cobol, PL/1 and WebSphere• 28,000 MIPS, 250 TB data

• 30% Microsoft platform• MS .NET and WebSphere

• Operations and Technical infrastructure outsourced to IBM

SSC SESSC NO

SSCSSC UK/IE

SSC Dev. Center

India (DCI)

SSC FI

SSC Bal

Vision

SSC Development:

Best financial services platform globally

One platform – exceptional brands

Mission

SSC Development:

Most value-creating and efficient development organisation

in the financial services sector

One platform – exceptional brands

Strategy

Developing product, process and system elements only once and deploying them Group-wide

Innovation based on close co-operation between IT and business specialists and based on customers and the group’s

business needs. Prioritizing groupwide and based on NPV

Being a value creating, efficient, motivated and competent development organisation basing development on best practices

SSC Development 2012

Roadmap for Development

Process PlatformProcess Platform

Human Resources

Organisation

System Management

Operations & Technology

Development Tools

Development Processes

One platform –exceptional brands

Finance

Customer Satisfaction

Competent and

engaged employees

in a top ten IT

workplace

Innovative and

effective global

organisation

Systems are

driven towards

excellence

One Group – One Process

Defined and measured

Market leading and inte-

grated tools enable

efficient and flexible dev. &

solutions

Excellent operations

based on

standardized market

platformsSatisfied

customers

Most

valuecreating &

cost efficient IT

compared to

peer

Effective processes and

mature organisation

enable time to market and

quality

Service Oriented ArchitectureCoherent user interfacesEfficient and Flexible Implementation of One Group – One System

Workplace

Workplace

Business processes

Business processes

User interface

User interface

ServiceService

ServiceService

ServiceService

Services

Services

ServiceService

ServiceService