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Article OUR AIM IS TO DELIVER THE CUSTOMER PROXIMITY OF A LOCAL BANK WITH THE EFFICIENCY OF A BIG BANK – Interview with Carsten Tirsbæk Madsen, Executive Vice President, Retail Banking, Jyske Bank By Olaf Valentin Kjær, [email protected], Implement Consulting Group implementconsultinggroup.com 1 Our aim is to deliver the customer proximity of a local bank with the efficiency of a big bank We were invited for coffee at Carsten Tirsbæk’s office in Lyngby for a chat about Jyske Bank’s execution power. Carsten began the interview by giving us a brief history of the successful merger between BRF and Jyske Bank. He made it clear that ‘the numbers speak for themselves’, emphasising that Jyske Bank has experienced relatively strong growth, and that its balance sheet totals have doubled over the five years since the merger. “Through the merger with BRF, we actually needed to apply a simpler, more flexible caused significant disruption on the structure, which was also the basis for market for mortgages and generated our decision to switch to a single brand stronger growth than all the other banks strategy. It was quite simply a commercial put together. That said, the period follow- necessity – but it was also a difficult ing the merger has been marked by a long decision for the management. We tried to integration process targeted at harvesting apply the right combination of empathy synergies between mortgage credit and and execution power when we respectfully banking activities. Not only did we succeed laid the BRF brand to rest.” in expanding, we also managed to achieve a number of synergies, making the merger Common sense as the guide for a prime example of our capacity to convert management decisions into tangible com- strategic reorganisation and mercial changes.” execution Jyske Bank is not the first bank to face “We organised the work as a programme major reorganisations, and we asked that we called ‘Match’, reflecting the Carsten if the bank had modelled its excellent match we saw between our approach on what its competitors are respective market positions, locations, doing. Carsten came straight to the point, size and culture. We initially prioritised answering: “Our platform is exactly the putting the management teams in place same, regardless of whether we are talking so that the organisation was in a position about large, comprehensive changes, to act. Our intention here was to avoid the or if it’s a question of the hundreds and conventional round of ‘musical chairs’, hundreds of initiatives that we have to while simultaneously sidelining unnec- deal with on a daily basis. As I see it, it’s essary battles and internal jockeying all about making sure that we act in line for position. As a result, that particular with our strategies and values, even when aspect was in place by the time we went we’re working with situations where it’s public. Of course, the extent to which this absolutely essential to make big changes was ‘fair’ is always debatable, but it was in the bank.” an effective approach and allowed us to commence operations from day 1.” “It’s our obligation as managers to put the bank in as strong a position as possible. “During the initial period after the merger, We work with three groups of core stake- we continued operating with two brands, holders – customers, employees and two sets of products, two sets of processes, shareholders – and it’s essential for us to and so on. This naturally produced an maintain a balance between these three extremely complex company structure, groups. This balance is, and always has one that would prove unsuitable in the been, the fundamental philosophy behind long term. We realised that irrespective of all the management decisions taken at the value inherent in the BRF brand, we Jyske Bank, and it was most certainly implementconsultinggroup.com 2 Our aim is to deliver the customer proximity of a local bank with the efficiency of a big bank applied to the merger process as well. bank in Denmark in terms of the number Jyske Bank is, of course, also a part of of branches (98 branches compared to society in general, and we’ve always been Nordea (97) and Danske Bank (95)). well aware of our responsibility in this context. The most recent developments in We asked Carsten where Jyske Bank our sector constitute the clearest possible will put their focus going forward. Once justification of this approach.” again, he highlights the balance between customers, employees and shareholders. “We can see that both customers and Visibility and transparency are employees are happy right now, whereas essential in all areas of the bank our shareholders – if you look at the “As I’ve already mentioned, our capacity development in our share price – aren’t to run an efficient bank depends on our completely satisfied at the moment. This ability to move quickly from words to means that we’ll have to put in some extra actions. So we’ve started running what are effort in the immediate future to improve known as whiteboard meetings at Group our efficiency, without this causing us to management level. More specifically, we compromise on our goal of being a bank meet weekly to discuss our commercial based heavily on relations. The core of results, progress and most significant our strategy for private customers is to Jyske Bank input, and to share thoughts on current combine ‘the customer proximity of a local is keen to developments at the bank. The meeting bank with the efficiency of a big bank’.” is held face to face, and the entire Group provide management team takes part.” “We believe in the close relationship between bank and customer as a key customers “This is an initiative we’ve launched on the component of our business – even in an back of our strategy process, where we increasingly digitalised world. In simple with advice introduced a number of strategic initia- terms, we want to be the best advisory tives on group level. We’ve just finished and relationship bank in both an analogue on their formulating our most significant initia- and digital context, by offering a flexible tives in the group, and we’re now running combination of channels adapted to the terms ...” a tight follow-up in a fixed weekly rhythm needs of the individual customer.” at these whiteboard meetings. We round off each meeting with a brief summary for “We want to meet customers at ‘eyelevel’– all our staff. In practice, this means that a both online and offline. Our surveys show member of the Group Executive Board will that customers have widely differing do a short television briefing immediately needs and preferences. Around a quarter after the meeting to share positive stories of all banking and mortgage customers and results that underpin the execution place great emphasis on having a close of our strategy, and to highlight any areas relationship with an adviser. For our bank, that require further attention.” the proportion is appreciably larger. We’re committed to ensuring that customers We want to be a bank that is don’t just have a relationship with a given based heavily on customer adviser, but also with Jyske Bank as a whole. Personal relationships are and will relations – both in our digital continue to be the core of what we do. channels and in the physical world But there are also increasing numbers While Nordea and Danske Bank have more of customers looking for a different kind than halved their numbers of branches of relationship that’s more ‘self-reliant’, over the past five years, Jyske Bank has so we’re ramping up our IT investments chosen to stay in the market place with to make more of the bank services our an unchanged number of branches at customers enjoy in the physical world least until 2020. Figures from August 2018 available online.” show that Jyske Bank is now the biggest implementconsultinggroup.com 3 Our aim is to deliver the customer proximity of a local bank with the efficiency of a big bank We’re ready to become even more quite happy with consultancy via web and relevant telephone meetings.” In recent years, several of the bank’s major competitors have been driven by a “Growth continues to be one of our objec- strong cost agenda, with an emphasis on tives at the bank. This means that while closing branches and forcing customers cost reductions are not a separate goal to increasingly use their call centres in and of themselves, costs are naturally and self-service solutions, for example. a part of the overall profitability profile. This means that many customers have We must, of course, align operations with lost contact with their personal adviser. market conditions, and we’re not afraid to “We at Jyske Bank believe that personal tighten up on either costs or credit if we advisory and professionalism remain feel we’re heading towards challenges of crucial to a good banking experience, and other kinds.” this is something we’re keen to retain. It may sound expensive, but we believe that “Where we tend to spend too much time technology today puts us in a position to on administrative work in our network of make more flexible use of our employee branches today, we should spend more resources and skills going forward.” time talking to customers – both existing and new – in the future, as this will help “Of course, we’re not blind to the fact that us attract and retain customers in a good, people aren’t coming into the bank as positive way.

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