Komplett Bank annual report 2019

competitive position in Norway. Following an initial launch in Norway, these products may be introduced to other markets in 2020. Throughout 2019, the Bank maintained stable good growth for con- sumer loans in Sweden and Finland, which resulted in substantially improved portfolio diversification, in line with the Bank’s long-term strategy for geographical and product-wise expansion. Komplett Bank launched credit cards in Sweden during the first quarter of 2019 followed by Finland in the second quarter. Throughout 2019, credit card loans declined by 5% to NOK 801million, net of NOK 185million in forward flow sales and an one-off sale in the Norwegian market. At the end of the year credit card loans in Finland and Sweden are slightly below 10%of the total credit card loans portfolio. Point-of-sales (POS Finance) grew by 48% in 2019 to NOK 505 mil- lion, mainly driven by seasonal effects in Q4. Currently POS Finance is available on Komplett’s Norwegian and Swedish websites. In 2019 deposits were significantly impacted by the launch of EUR deposits in late 2018, contributing to an increase in deposits of 16%. Currently the Bank offers fixed-term and overnight accounts to German customers. The Bank also entered the Swedish deposit market in January 2020, and both the German and the Swedish deposits will contribute to lowering the overall funding ratios. TABLE 1: NET LENDING BY PRODUCT NOK million 2019 2018 Change Consumer loans 7,190 6,656 8% Credit cards 801 847 -5% POS Finance 505 341 48% Deposits 8,520 7,366 16% Operational efficiency Operational efficiency with low cost is a foundation for Komplett Bank, and it is enabled by centralised operations, modern systems and a digital setup. During 2019, Komplett Bank continued to develop and expand its operational platform with new solutions. Both Google Pay and Apple Pay were launched in July 2019 and enabled Komplett Bank’s Mastercard for mobile payment throughout the Mastercard ecosystem. Komplett Bank is also in the process of developing a new innova- tive mobile banking app, which will be launched during the first half of 2020. The mobile banking app will increase accessibility and enhance services provided to customers. The Bank’s focused and standardised product offering together with extensive self-service functionality further enhances the cost efficiency and scalability in the business model. At the end of the year, the Bank had approximately 270,000 customers, an increase of 29% from 209,000 customers at the end of 2018. Of these, 28% were consumer lending customers, 20% were credit card customers, 43% were point-of-sales finance customers and 9% were deposit customers. Komplett Bank uses credit models to make lending decisions. Based on information in the application, as well as data collected from internal and external sources, an automatic credit decision is calculated, and an offer is potentially made to the customer. The introduction of the Norwegian debt register in 2019 improved the credit decision for the Norwegian market further by pro- viding a new tool to quickly and efficiently assess applicants’ Net loan distribution by product Customer distribution by product NOK 8.5 billion 270,000 Loans Norway 44% Credit cards 9% Loans Finland 29% Point-of-sales finance 6% Loans Sweden 12% Loans Norway 16% Credit cards 20% Loans Finland 9% Point-of-sales finance 43% Loans Sweden 3% Deposits 9% Komplett Bank Annual Report 2019 23