The Finance division facilitates the flow of capital profitably and efficiently within Arion Bank and ensures that the Bank’s liquidity meets the requirements made by the Board and the regulators at all times. The division raises credit on the domestic and international markets at favourable terms which enables the Bank to provide necessary services to its customers. Finance is also responsible for market making which stimulates liquidity in equities and bonds on the Icelandic securities market. Finance had 50 full time employees at the end of 2015. Finance is managed by Stefán Pétursson, Chief Finance Officer.
Finance actively monitors the Bank’s operating expenses. It enables the Board and employees to make informed decisions by providing them with quality information. It is also responsible for reporting to the regulatory authorities and thereby meets the requirements which are fundamental to the Bank's operating licence. Finance prepares the Bank’s annual and interim financial statements.
Finance therefore plays a pivotal role in helping the Bank's different units, its subsidiaries and the Bank as a whole achieve the optimal results for the customers, employees and shareholders.
Planning and Analysis is responsible for the regular reporting of information to the regulatory authorities, which is one of the conditions for the Bank’s operating licence. Planning and Analysis also supports the decision-making process at Arion Bank by providing the Board and employees with information and material.
Funding raises stable funding at favourable terms which makes the Bank more competitive and places it in a better position to serve its customers.
Treasury manages and facilitates the flow of capital effectively between different divisions of the Bank. The division is the central repository for all capital at the Bank and is responsible for managing customers’ deposits, wholesale funding, foreign exchange and other financial products. The department also manages liquidity and maintains a balance in the Bank’s operations in compliance with the Board's risk appetite and regulatory requirements. Treasury performs its role profitably and efficiently.
Cost Accounting and Payroll records and provides information on the Bank's operating expenses. The department also actively monitors costs and ensures that the cost ratio matches targets and promotes greater cost awareness.
Accounting is responsible for producing the annual and interim financial statements and for providing accurate and up-to-date information which contribute to running a better business and builds up trust with the owners, the Board, the regulatory authorities and the general public.
Corporate development and marketing
Corporate Development & Marketing plays an important role in the Bank's strategic planning, motivating and supporting change and development within the Bank. The division is divided into Marketing, Online Banking, Project Office and A Plus. The division employed 29 full time employees at the end of the year. The managing director is Rakel Óttarsdóttir.
The role of Marketing is to support the development of long-term relationships with the Bank’s customers through focused marketing and effective communications. Marketing is integral to the Bank’s strategy and future vision and involves marketing products and services, event management, internal marketing and corporate social responsibility, while at the same time nurturing the Bank’s image and brand.
Online Banking is responsible for developing digital channels, services and communications with the Bank’s customers. By continuously offering new options online, via Arion Online Bank and the Arion App, the Bank is offering its customers greater choice and the option to access banking services whenever and wherever they want. Online Banking is also managing the introduction of CRM which brings greater efficiency and better customer service.
Project Office manages the Bank’s project pipeline. The Project Office has a team of professional project managers who manage major cross-bank projects, in line with the Bank’s strategy and future vision. Effective project management ensures greater efficiency and facilitates the engagement of everyone involved.
The Operations division performs a vital role for the Bank by ensuring that all employees can apply their abilities to the full for the benefit of customers. The division comprises Information Technology, Back Office, Facilities and Property Management, Records Management and Procurement. Operations had 260 full time employees at the end of 2015. The managing director during 2015 was Sigurjón Pálsson.
Information Technology (IT) supports the Bank by providing flexible and secure IT solutions, and offering expert advice and services designed to enhance the users’ experience. A powerful information system and the focused application of IT are integral to the Bank’s strategy of being a relationship bank where the customers’ experience is placed at the forefront.
The focuses on 2015 were on defining and simplifying schematics, improving the efficiency, quality and security of IT solutions, enhancing the customers’ experience and providing even better services to users at the Bank. In 2016 we will place an even greater emphasis on applying new technology to make our products and services more available through digital channels, automatizing procedures and developing cutting edge digital solutions for our customers. Running stable and secure information systems and providing quality solutions will remain the focal point at IT.
Back Office is responsible for administrating and processing transactions, including loans, deposits and securities transactions. This includes ensuring compliance with the rules on completing documents and the correct recording of data in the Bank’s systems. Specialists in Back Office advise the front office and are in direct contact with domestic and international financial institutions and, to a growing extent, customers of the Bank.
The main focuses in 2015 were to improve the efficiency of procedures, cultivate closer relations with the customers to shorten lines of communication and to boost internal controls. The emphasis in 2016 will remain the same and we will also integrate Pension Services which joined Back Office in late 2015.
The objective of Facilities and Property Management is to ensure that all employees have the best possible working environment. The department manages and maintains all premises used by the Bank across the country, a total of 30,000 m2, and provides a range of other services for the employees, such as catering and printing.
Records Management supervises and manages the organization of records, both in electronic and physical format. The main assignment in 2015 was the introduction of a new records management system and this will be completed in 2016.
The role of Procurement is to coordinate the procurement of supplies at the Bank. A clear and effective strategy on procurement management brings greater efficiency to the business, strengthens the Bank's relationship with suppliers and ensures the optimum terms of business.
The main roles of the Legal division are to provide independent legal advice, high quality legal drafting and the professional collection of debt. The Legal division strives to foster good relationships with other divisions of the Bank in order to ensure that legal experts are involved in any issues requiring legal advice at an early stage. Legal is divided into four units: Restructuring and Litigation, Legal Collection, Legal Services, and Legal Documentation. The Legal Division had 42 full time employees at the end of 2015. The managing director is Jónína S. Lárusdóttir.
Restructuring and Litigation undertakes the restructuring of acquired assets and companies and handles the satisfaction of the claims of Arion Bank and other entities as stipulated in special agreements. It is also responsible for representing the Bank in court.
Legal Collection handles the collection of the Bank’s claims which have entered the legal collection process.
Legal Services is divided into three teams, each specializing in providing legal advice to different divisions and departments within the Bank.
Legal Documentation provides legal advice and drafts legal documents for Retail Banking and Corporate Banking. There are two teams: one which specializes in legal advice and drafting for individual customers and the other for corporate clients. This team also provides other legal services for the credit divisions.
The CEO’s Office includes the CEO, personal assistants to the CEO, a business development specialist, head of innovation and the Customers' Ombudsman. Human Resources, Communications and Compliance also belong to the CEO’s Office. The CEO’s Office had 17 full time employees at the end of 2015.
The main tasks of the CEO's Office involve general assistance to the CEO and the organization and administration of board and committee meetings. Business development is responsible for development and short-term and long-term strategic planning. Innovation supervises projects including Startup Reykjavík and Startup Energy Reykjavík. The Customers’ Ombudsman is responsible for analyzing and following up on recovery cases involving retail and corporate customers.
Human Resources has been restructured and is essentially a new department at the Bank. It merges HR and the Bank’s A Plus team, which is made up of the Bank’s specialists in lean management. Human Resources previously belonged to Operations and A Plus was under Corporate Development and Marketing. The objective is to advance HR issues with a focus on providing support to management and employees through the application of lean management.
Human Resources strives to provide its customers, i.e. the employees and management, with the best possible service. The objective is to attract and retain qualified and capable employees and to inform, support and provide guidance. Human Resources manages the implementation of lean management throughout the Bank with the aim of continuous improvement – doing better today than we did yesterday.
Communications is responsible for public and investor relations and external and internal communications.
The role of Compliance is to ensure that operations are in compliance with the law and anti-money laundering and terrorist financing measures. Further information on Compliance at Arion Bank can be seen here.