An introduction to Danske Bank’s development and IT philosophy

1. One Platform
An introduction to Danske Bank’s development and IT philosophy
Peter Schleidt, Executive VP, CIO, deputy COO

2. Shared Services Centre
- Organization
Shared Services Centre
Sven Lystbæk
D. Peter Schleidt
Secretariat
Steen Hjort
Retail & Logistics Pension & Insurance Business Controlling
Group Contact Centre Transaction Services Corporate Development
Services Products Systems
Henrik Olsen Mogens Søndergaard Arne Løcke
Kim Winther Petersen Jørn Chjeffer Rasmussen Rune Petersen
HR Human Resource Business Infrastructure
Retail Solutions
Services Systems
Carsten Smith
John Bjørn Olsen Per Hviid
Sven Lystbæk
Peter Schleidt
Shared Services Shared Services Digital Banking Programme
Ireland Baltic Programme Management
Paul Black Ege Malling Erik Møller Frandsen Erik Andreasen
Shared Services Shared Services Shared Services IT Development IT Infrastructure &
Consultancy Services
Finland Sweden Norway Processes & Tools Service Management
Charlotte Arnvig
Tapani Koskinen Johan Löfgren Asbjørn Bredesen Peter Rasmussen Jan Steen Olsen

3. 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

4. Strategy:
Focus on retail banking

5. One Platform – Excellent Brands
Single banking model based on
autonomy in customer interface
and firm structure in product
creation and operational
procedures

6. 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

7. One Platform
Multiple benefits
• “One of everything” as a guiding
principle
• ”One and only one way to carry
through a given task” –
standardisation based on best
practices Finans
Finance
Filialer Call centre Netbank ATM
• Global group functions including one Branches Call centre Netbank ATM centre
centres
Shared Service Centre
• One IT platform
• One view of the customer in real-time Products
Asset
• 100% customer focus in brands Management
Bonds &
• Stronger capabilities; quality through Core Equities
best practice processes, competence Credit Currency Approvals FOREX
through specialisation and differentiation Payment Customer Interests
through integration Cards
s
Accounts Organization
Fees
• Improved efficiency; higher economies Customer
of scale through standardisation, Mortgag output Dataware
Risk Treasury
specialisation and central execution, e
Accounting house
higher degree of STP from channel to Cash
Life &
Leasing
execution Management
Pension
• Optimal integration platform; scalability
synergies; new customer services
• Higher degree of long-term flexibility Koncern
Better adaptability, since changes only Service Center
has to be implemented once for the entire
group

8. One Platform
A Strategy of doing things the same way everywhere
Brands
Channels
Branches Asset ATMs
Bonds &
Management Products
Equities
Core
Credit Currency Approvals FOREX
Payment Customer Interests
s
Cards Accounts Organization
Fees
Customer
output Risk Treasury
Mortgage Dataware
Accounting house
Cash Leasing
Life &
Internet Management
Pension Finance
Centers
Contact Centres

9. One Platform - a journey since 1990
Important milestones
• 1991 One Bank – One System
• 1994 Multicurrency
Sampo bank
• 1998 Netbank in 2008
• 1998 Intranet Helsinki Branch
in 1997
Fokus Bank
• 2002 CRM in 2001
• 2002 Flexible Architecture Östgöta Enskilda
in 2000 & 2002
• 2003 Customer Packages
BG Bank
• 2004 Resilience in 2001
Northern Bank/National
Irish Bank in 2006 Hamburg Branch
in 1999
London Branch
• 2005 Group Reporting in 1998
Danske Bank Polska
• 2006 CAD3/Basel II advanced in 2003
Danske Bank Intl. Lux.
in 2003

10. Standardised IT and back office
– But scope for local adaptation

11. Danske Bank Development & IT
• Part of Shared Services Centre
• Combined Product, Process and IT
development
• 2200 developers in multiple
countries
SSC FI • Domain areas
• Consultancy Service + DCI
SSC NO SSC SE SSC Bal
• Foreign SSC’s
SSC UK/IE
• One Development model (CMMI)
SSC
• 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
SSC Dev. Center
India (DCI) • Operations and Technical
infrastructure outsourced to IBM

12. Vision
One platform – exceptional brands
SSC Development:
Best financial services platform globally

13. Mission
One platform – exceptional brands
SSC Development:
Most value-creating and efficient development
organisation
in the financial services sector

14. Strategy
SSC Development 2012
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

15. Roadmap for Development
Effective processes and Market leading and inte-
mature organisation grated tools enable
enable time to market and efficient and flexible dev. &
quality Development solutions
Development
Systems are
Processes Tools Excellent operations
driven towards System
Operations & based on
excellence Management Technology
standardized market
Innovative and platforms
Satisfied
effective global Organisation Process Platform Customer
Satisfaction
customers
organisation One Group – One Process
Human Defined and measured Most
Competent and Resources Finance valuecreating &
engaged employees cost efficient IT
in a top ten IT compared to
workplace One platform –
exceptional brands peer

17. Service Oriented Architecture
Coherent user interfaces
Efficient and Flexible Implementation of One Group – One System
Service
Service
Business processes
Business processes
User interface
Service
User interface
Service
Workplace
Workplace
Services
Services
Service
Service
Service
Service
Service
Service