Komplett Bank Annual Report 2020

During 2020, credit card loans declined by 9% to NOK 729 million. At the end of the year, credit card lending in Finland and Sweden represented 17% of the total portfolio of credit card loans. Point-of-sales (POS) financing grew by 14% in 2020 to NOK 577 million, driven by seasonal effects in Q4. Currently, POS finance is available as a payment solution on three of the Komplett group’s Norwegian and Swedish websites. In 2020, deposits grew by 6% to NOK 8,992 million. Deposit prod- ucts are without fixed terms, except for German customers who can also choose fixed-term deposits with one- or two-year fixed interest rates. Komplett Bank entered the Swedish deposit market in January 2020, and both the German and the Swedish deposits are expected to contribute to lowering the Bank’s overall funding costs going forward. In 2020, the Bank reduced the deposit rate in Norway from 1.95% to 1.00%, and in Germany from 0.40% to 0.17% on deposit rates without fixed terms. TABLE 1: NET LENDING BY PRODUCT NOK million 2020 2019 Change Consumer loans 7,055 7,190 -2% Credit cards 729 801 -9% POS Finance 577 505 14% Deposits 8,992 8,520 6% Operational efficiency Operational efficiency with low costs is a priority for Komplett Bank, enabled by centralised operations and modern digital systems. At the same time, the Bank is continuously working to improve its ability to interact with customers. During 2020, Komplett Bank continued to develop and expand its operational platform with new solutions. In the first half of the year, the Bank launched a mobile banking app which simplifies and enhances services provided to customers. It also allows for more extensive self-service functionality, which enhances the cost efficiency and scalability in the business model. At the end of the year, the Bank had approximately 325,000 customers, an increase of 20% from 270,000 customers at the end of 2019. Of these, 22% were consumer lending customers, 19% were credit card customers, 48% were point-of-sales finance customers and 11% were deposit customers. Komplett Bank uses credit models to make lending decisions. When private individuals apply for loans, they must give informa- tion relevant for their debt-servicing ability. Komplett Bank’s credit models give automatic, but conditional offers of credit to private individuals deemed creditworthy. After that, data is collected from internal and external sources and analysed before a final credit decision is taken. Among the external data sources used are the debt registers in Norway, Sweden and Finland Organisational development Changes in top management In 2020, Ove Holstangen was appointed as the company’s Chief Risk Officer. Holstangen comes from a position as a regulatory adviser in the Norwegian FSA and started in his role at the Bank 1 September. After leading the bank from the beginning of 2019, Jan Haglund announced in early 2021 his resignation as Chief Executive Officer (CEO) after accepting a similar position at the Entercard Group, based in Sweden. Before his role as CEO, Jan Haglund had been Chief Financial Officer (CFO) less than one year, and before Net loan distribution by product Customer distribution by product NOK 8.4 billion 288,000 Loans Norway 38% Credit cards 9% Loans Finland 30% Point-of-sales finance 7% Loans Sweden 17% Loans Norway 12% Credit cards 21% Loans Finland 9% Point-of-sales finance 54% Loans Sweden 3% Komplett Bank Annual Report 2020 31