Our stakeholders
Our main stakeholders are the customers of Arion Bank, shareholders, our human resources and society as a whole. At Arion Bank we realize the importance of interacting with and listening to the differing needs of these groups and understanding what is most important to them. Positive and reciprocal relationships with our stakeholders are fundamental to effective teamwork.
Materiality analysis
In 2020 we engaged the consultancy CIRCULAR to perform a materiality assessment of the Bank. The methodology used was based on identifying risks relating to environmental issues, social factors and governance and takes into account the Bank’s geographical location and activities. The materiality assessment was used as a basis for analyzing stakeholders and a survey was sent to employees as well as a sample of customers, suppliers, partners and shareholders at the beginning of 2021. The survey investigated how stakeholders viewed the Bank’s main focuses in terms of sustainability and social responsibility and the results will be used to further refine the Bank’s focuses with respect to sustainability and responsible banking.
The results, displayed below, have used to reassess and confirm the selection of material topics in the Bank’s GRI report, see GRI Index here. The X axis shows materiality based on CIRCULAR’s analysis of what is most important for Arion Bank based on its geographical location and activities, and the Y axis shows materiality according to the assessment of all those stakeholders who completed the survey.
Results of materiality analysis
The X axis shows materiality based on CIRCULAR’s analysis of what is most important for Arion Bank based on its geographical location and activities
The Y axis shows materiality as assessed by all stakeholders.
Below is a list of the topics asked about in the survey
Topic |
|---|
Responsible investment and lending |
Responsibility in the value chain (suppliers and customers) |
Lending and investment provide incentive for environmentally certified housing |
Adapting to climate change (in lending and investment) |
Greater availability of financial products for minority groups |
Corruption and bribery |
Diversity and equality |
Transparency |
Good competitive behaviour |
Good corporate governance |
Good business ethics |
Qualified employees |
Gender equality |
Loans and investments improve the management of waste and sewerage |
Loans and investments take into account air pollutants |
Loans and investments take into account biodiversity |
Loans and investments take into account climate change |
Cyber security |
Anti-money laundering measures |
Working standards and collective wage agreements |
Respect for human rights |
Active participation in the local community |
Digital services and solutions |
In the survey of stakeholders they were also asked how important they thought each UN Sustainable Development Goal was for Arion Bank’s operations and focuses in terms of sustainability, lending, investment and buying.
According to the results displayed below, stakeholders considered goal number 8 on decent work and economic growth to be the most important, followed by goal number 5 on gender equality and goal number 9 on industry, innovation and infrastructure.
Customers
The experience and satisfaction of our customers are central to our business. Therefore we are constantly seeking to find new ways to meet our customers’ needs and improve our services. Surveys are conducted in order to gauge the customers’ experience and to ascertain how likely they are to recommend Arion Bank based on certain factors. The results of these surveys are used to help develop services and refine focuses. In 2020 we recorded 17,800 suggestions and ideas from customers.
The COVID-19 pandemic had a profound impact on the Bank and society as a whole in 2020, and the Bank worked closely with retail and corporate customers and investors to find ways to negotiate these difficult times. Public health measures meant that there was a sharp drop in the number of visits to the branches and headquarters, but other channels such as webchat, e-mail and phone calls increased accordingly. At the end of the year the Bank began testing a new service channel where customers can obtain service and advice face-to-face through the communications platform Teams. By focusing on simple and secure communications with the Bank we make banking even more convenient.
In response to the pandemic situation we gave our customers the option of a payment holiday on loans and participated in the government measures which offered special loans to customers. We continue to carry out our role as an intermediary on the market, facilitating the flow of funds from savers to borrowers. We also provide companies with advice on transactions such as acquiring and selling companies and raising market funding by issuing commercial papers, bonds or shares. During the year we merged our corporate services in the Reykjavík area at the Bank’s headquarters. We now have a dedicated team of specialists, providing companies with general financial services and helping our branches outside Reykjavík to provide the same level of quality services to companies in their locality.
In response to the pandemic situation we gave our customers the option of a payment holiday on loans and participated in the government measures which offered special loans to customers. We continue to carry out our role as an intermediary on the market, facilitating the flow of funds from savers to borrowers.
We offer smart solutions and 99% of all our interaction with customers is now via our digital service channels. The Arion app, online banking and the Arion Bank website are open day and night all year round. Customers can also post questions and make suggestions on the Bank’s Facebook page and our employees respond as quickly as possible. The app now has more than 86,000 users and surveys have named the Arion app as the best banking app in Iceland for the fourth year in succession.
The app can be used by anybody, whether they are regular customers of the Bank or not. Anyone with electronic ID can download the app, open accounts, start making regular savings, buy insurance and also view their accounts at other banks and check their pension savings. Arion Bank helps its customers learn how to use its digital solutions. We also get our customers to help us to test new digital products before they are launched. This is how we develop or goods and services in close collaboration with our customers so we can better cater to their needs.
Further information on the Arion app
Human Resources
Arion Bank seeks to create a positive working environment where we can attract and retain the best employees. We aspire to develop an inspiring environment where employees are comfortable and satisfied in their jobs. Employees are encouraged to take responsibility for their professional development, knowledge and skills.
The COVID-19 pandemic left its mark on the workplace just as it did in every other area of society in 2020. Providing clear information is more important than ever and people mainly kept in contact through the communications platform Teams. A survey among employees revealed that 92% of people believed that working from home had been a success and 67% said they would like to have the opportunity to work from home every two weeks or more often. To accommodate these wishes a remote working policy has been prepared where people will be given the opportunity to work from home.
Providing clear information is more important than ever and people mainly kept in contact through the communications platform Teams. A survey among employees revealed that 92% of people believed that working from home had been a success and 67% said they would like to have the opportunity to work from home every two weeks or more often. To accommodate these wishes a remote working policy has been prepared where people will be given the opportunity to work from home.
A digital survey, the Arion Index, is regularly sent to employees to check on people’s well-being and their experience of the workplace environment and also to enable people to communicate new ideas and recommendations quickly and securely. The Arion Index comprises several key questions on topics such as how people feel at work, goal-setting and feedback and the average score was 4.39 in 2020 (on a scale of 1-5, poor to excellent). A work place audit was also conducted during the year in partnership with Gallup. Overall the results were positive in 2020 and employee engagement measured 4.33 which is similar to last year. The surveys enable the management to make changes to areas of the business where we can do better and to keep on doing what we do well.
Further information on Human Resources
Shareholders and bondholders
Investor Relations specializes in communicating with shareholders, bond investors, analysts and other market participants. Under the Bank’s funding strategy the Bank aims to be the leading issuer in Iceland, a position based on excellent relationships with domestic and international investors, effective reporting and solid credit ratings from the ratings agencies. Regular meetings are held with investors after the publication of financial results and the Bank also discloses information before bond issues and on other occasions.
The annual general meeting is usually held every March. The annual general meeting (or shareholders’ meeting) is the main venue for shareholders to have a say on how the Bank is run. At the annual general meeting shareholders vote on the board, auditors and other matter raised by the shareholders or board of directors.
All relevant market information is published in releases to the stock market and any information sensitive to the market will be released through a MAR (Market Abuse Regulation) press release.
Arion Bank arranges quarterly meetings for market participants at which the CEO, CFO and Investor Relations present the interim financial results. The Bank aims to hold a capital markets day for shareholders and market participants every two years. The last capital markets day events were held in Reykjavík and London in 2019, where the Bank presented its medium-term strategy and business focuses. The Bank plans to hold the next event of this kind in the autumn of 2021.
Further information on Investor Relations
Society
Arion Bank is a large company by Icelandic standards and the Bank’s social responsibility involves not only running a responsible and profitable business but also assessing what impact the business, i.e. loans and investments, has on society and the environment. In all the decisions we make, we assess the various interests at stake, with the long-term view being just as important as short-term considerations. We assess the possible gains and risks involved in the decisions and loans we make, with many different interests at stake. Every year we collaborate on a wide range of exciting investment projects with our customers with the aim of strengthening the business sector in this country.
We are committed to supporting entrepreneurs and we nurture innovation and growth through partnerships with selected partners.