21 Dec 2011, Custody Risk, Risk magazine
Nordea has won significant new mandates in the past year and has been able to strengthen its position even further in the Nordic region as a result of its relationship management and service capabilities with a local approach. The new wins and high retention of existing mandates prove testament to Nordea’s strong relationship management process, client focus, local expertise and service capabilities in the region.
Nordea – which was historically formed from four local banks – has significant market shares in each of these countries, it has a harmonised regional offering and, over the years, it has won significant market shares in its home markets of Denmark, Finland, Norway and Sweden. The judges praised the banks “comprehensive regional coverage”.
The bank has continued to innovate its offering. Nordea has a constant focus on improving its existing service offering as well as adapting to the changing securities market infrastructure by developing new offerings. One example of this is that Nordea’s Sub-custody and Clearing is gearing up for the future. It is currently in the process of implementing a new regional asset-servicing system and has recently upgraded to a new harmonised Swift platform.
Nordea’s Sub-custody and Clearing has a strong and integrated value chain that ensures all clients’ needs and requirements are prioritised.
In addition to looking after its clients, Nordea is very active in different Nordic forums, discussing initiatives such as Target2-Securities, central counterparty (CCP) clearing, messaging and all regulatory matters. It is a member of the Securities Market Practice Group, the Nordic Market Practices Group, the Euroclear Market Advisory Committee and the Nordic Steering Committee for CCPs. The securities services industry is undergoing many changes in a short space of time and it is important for a provider and its clients to use its expertise to influence, drive and shape this change.
The outlook is also bright for Nordea, with the bank set to continue its growth path in 2012.
Importantly, within the context of the difficult macro-economic environment, Nordea has a strong rating from international rating agencies, with a stable outlook, and is considered to have a well-diversified business model with adequate capital and a resilient risk profile. Its model of sustainable, relationship-driven and best-fit provision holds it in good shape for the future.
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