The chief executive of Nordea Bank says his industry needs to rethink pretty much everything it’s doing to brace for the future.
And that includes how much it is paying bankers.
The Nordic region’s biggest financial conglomerate is already in the process of cutting 6,000 jobs as part of a shift toward relying more on technology and less on humans. But the chief executive Casper von Koskull says the search for more efficient ways of doing business will not end once those jobs are gone.
“People said automation is only in personal banking,” Mr von Koskull said in Stockholm. “But there are elements of it in investment banking, corporate banking, liquidity management, foreign exchange. You need to look at how much of it is automated and whether there’s less human involvement.”
There will always be a “human element,” he said. But ultimately, “you need to ask the question, what value is the human adding, and how does that affect pay?”
Mr von Koskull’s mission is to blaze a trail that other banks will be inspired to follow. In explaining his world view, he uses phrases like “you don’t need banks, but you need banking”. He also insists that “bankers need to be more tech savvy, and understand how you use tools”.
He envisions a flatter organisation. So when it comes to the bank’s planned job cuts, that means “the ones who are mostly hit are middle to higher-level management, because those layers aren’t needed, or shouldn’t be”, Mr von Koskull said.
None of this should make a career as a banker less appealing, he said.
“If you’re passionate about the customer and about providing value to customers, and frankly also to society, I think it’s a fantastic place, still, to work,” he said.
Investment banking, in particular, is a special case, according to Mr von Koskull. “Because at the end of the day, it’s not just about the facts,” he said. “I’ve always said finance is a social science anyway, it’s not an exact science. So if you’re a merger adviser or a wealth adviser, it’s about trust and relevance.” But even here, “technology will have an impact”.
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And banks are “also a place where a lot of society would say that we are still, even, paid too much”, Mr von Koskull said.
The question of banker pay is one that regularly triggers acrimony from some corners of society. Just last month, the chief executive of UBS, Sergio Ermotti, and a former deputy governor of the Bank of England, Paul Tucker, were at opposite ends of a heated debate questioning the remuneration culture in the finance industry. At the same time, there is a growing list of banks who are ditching humans as they rely more on automation.
Mr von Koskull says that banks who do not follow Nordea’s lead are ignoring “cost drift”. He expects his firm to soon be “probably the only large European bank that has completely transformed its core bank system to a modern system".
"It’s a completely different bank at that cost level."
Ultimately, all of this benefits the shareholders, he said.
“Over the years, while we transform, we have a very clear aim to have a progressive dividend policy, which means it will grow every year in absolute terms.”
Getting there
Etihad Airways flies daily to the Maldives from Abu Dhabi. The journey takes four hours and return fares start from Dh3,995. Opt for the 3am flight and you’ll land at 6am, giving you the entire day to adjust to island time.
Round trip speedboat transfers to the resort are bookable via Anantara and cost $265 per person.
All about the Sevens
Cape Town Sevens on Saturday and Sunday: Pools A – South Africa, Kenya, France, Russia; B – New Zealand, Australia, Spain, United States; C – England, Scotland, Argentina, Uganda; D – Fiji, Samoa, Canada, Wales
HSBC World Sevens Series standing after first leg in Dubai 1 South Africa; 2 New Zealand; 3 England; 4 Fiji; 5 Australia; 6 Samoa; 7 Kenya; 8 Scotland; 9 France; 10 Spain; 11 Argentina; 12 Canada; 13 Wales; 14 Uganda; 15 United States; 16 Russia
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
ENGLAND SQUAD
Goalkeepers Pickford (Everton), Pope (Newcastle), Ramsdale (Arsenal)
Defenders Chilwell (Chelsea), Dier (Tottenham), Guehi (Crystal Palace), James (Chelsea), Maguire (Man United), Shaw (Man United), Stones (Man City), Trippier (Newcastle), Walker (Man City)
Midfielders Bellingham (Dortmund), Gallagher (Chelsea), Henderson (Liverpool), Maddison (Leicester), Mount (Chelsea), Phillips (Man City), Declan Rice (West Ham)
Forwards Foden (Man City), Grealish (Man City), Kane (Tottenham), Rashford (Man United), Saka (Arsenal), Toney (Brentford)
if you go
The flights
Direct flights from the UAE to the Nepalese capital, Kathmandu, are available with Air Arabia, (www.airarabia.com) Fly Dubai (www.flydubai.com) or Etihad (www.etihad.com) from Dh1,200 return including taxes. The trek described here started from Jomson, but there are many other start and end point variations depending on how you tailor your trek. To get to Jomson from Kathmandu you must first fly to the lake-side resort town of Pokhara with either Buddha Air (www.buddhaair.com) or Yeti Airlines (www.yetiairlines.com). Both charge around US$240 (Dh880) return. From Pokhara there are early morning flights to Jomson with Yeti Airlines or Simrik Airlines (www.simrikairlines.com) for around US$220 (Dh800) return.
The trek
Restricted area permits (US$500 per person) are required for trekking in the Upper Mustang area. The challenging Meso Kanto pass between Tilcho Lake and Jomson should not be attempted by those without a lot of mountain experience and a good support team. An excellent trekking company with good knowledge of Upper Mustang, the Annaurpuna Circuit and Tilcho Lake area and who can help organise a version of the trek described here is the Nepal-UK run Snow Cat Travel (www.snowcattravel.com). Prices vary widely depending on accommodation types and the level of assistance required.
ROUTE TO TITLE
Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2
KILLING OF QASSEM SULEIMANI
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
Company profile
Name: One Good Thing
Founders: Bridgett Lau and Micheal Cooke
Based in: Dubai
Sector: e-commerce
Size: 5 employees
Stage: Looking for seed funding
Investors: Self-funded and seeking external investors
KEY DATES IN AMAZON'S HISTORY
July 5, 1994: Jeff Bezos founds Cadabra Inc, which would later be renamed to Amazon.com, because his lawyer misheard the name as 'cadaver'. In its earliest days, the bookstore operated out of a rented garage in Bellevue, Washington
July 16, 1995: Amazon formally opens as an online bookseller. Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought becomes the first item sold on Amazon
1997: Amazon goes public at $18 a share, which has grown about 1,000 per cent at present. Its highest closing price was $197.85 on June 27, 2024
1998: Amazon acquires IMDb, its first major acquisition. It also starts selling CDs and DVDs
2000: Amazon Marketplace opens, allowing people to sell items on the website
2002: Amazon forms what would become Amazon Web Services, opening the Amazon.com platform to all developers. The cloud unit would follow in 2006
2003: Amazon turns in an annual profit of $75 million, the first time it ended a year in the black
2005: Amazon Prime is introduced, its first-ever subscription service that offered US customers free two-day shipping for $79 a year
2006: Amazon Unbox is unveiled, the company's video service that would later morph into Amazon Instant Video and, ultimately, Amazon Video
2007: Amazon's first hardware product, the Kindle e-reader, is introduced; the Fire TV and Fire Phone would come in 2014. Grocery service Amazon Fresh is also started
2009: Amazon introduces Amazon Basics, its in-house label for a variety of products
2010: The foundations for Amazon Studios were laid. Its first original streaming content debuted in 2013
2011: The Amazon Appstore for Google's Android is launched. It is still unavailable on Apple's iOS
2014: The Amazon Echo is launched, a speaker that acts as a personal digital assistant powered by Alexa
2017: Amazon acquires Whole Foods for $13.7 billion, its biggest acquisition
2018: Amazon's market cap briefly crosses the $1 trillion mark, making it, at the time, only the third company to achieve that milestone
INVESTMENT PLEDGES
Cartlow: $13.4m
Rabbitmart: $14m
Smileneo: $5.8m
Soum: $4m
imVentures: $100m
Plug and Play: $25m
NEW PRICING SCHEME FOR APPLE MUSIC, TV+ AND ONE
Apple Music
Monthly individual: $10.99 (from $9.99)
Monthly family: $16.99 (from $14.99)
Individual annual: $109 (from $99)
Apple TV+
Monthly: $6.99 (from $4.99)
Annual: $69 (from $49.99)
Apple One
Monthly individual: $16.95 (from $14.95)
Monthly family: $22.95 (from $19.95)
Monthly premier: $32.95 (from $29.95)
The Prison Letters of Nelson Mandela
Edited by Sahm Venter
Published by Liveright
The specs
Engine: 3.0-litre flat-six twin-turbocharged
Transmission: eight-speed PDK automatic
Power: 445bhp
Torque: 530Nm
Price: Dh474,600
On Sale: Now
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Director: Nag Ashwin
Starring: Prabhas, Saswata Chatterjee, Deepika Padukone, Amitabh Bachchan, Shobhana
Rating: ★★★★
The specs
Engine: 5.2-litre twin-turbo V12
Transmission: eight-speed automatic
Power: 715bhp
Torque: 900Nm
Price: Dh1,289,376
On sale: now
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
Five healthy carbs and how to eat them
Brown rice: consume an amount that fits in the palm of your hand
Non-starchy vegetables, such as broccoli: consume raw or at low temperatures, and don’t reheat
Oatmeal: look out for pure whole oat grains or kernels, which are locally grown and packaged; avoid those that have travelled from afar
Fruit: a medium bowl a day and no more, and never fruit juices
Lentils and lentil pasta: soak these well and cook them at a low temperature; refrain from eating highly processed pasta variants
Courtesy Roma Megchiani, functional nutritionist at Dubai’s 77 Veggie Boutique
Profile of Udrive
Date started: March 2016
Founder: Hasib Khan
Based: Dubai
Employees: 40
Amount raised (to date): $3.25m – $750,000 seed funding in 2017 and a Seed+ round of $2.5m last year. Raised $1.3m from Eureeca investors in January 2021 as part of a Series A round with a $5m target.