Northern lights

FST. What is your main focus at Nordea bank at the moment?
Peter Lunding. W e are in the last part of our IT-consolidation journey started after the merger. We are currently finalizing a consolidation program on securities area where we are installing new systems for fixed income and for cash equities . During this we are closing down local systems in four countries for the four banks that was part of the merger. The second thing is that we have started building a dedicated computer Centre for the Capital Markets area. The third area is that we are very much into people and competence management, HR issues, securing that Nordea IT is the place you want to work and making sure that we have the right people and competencies available.

FST. You mentioned the consolidation with your four banks . Can you tell me more about that status and the whole process? What challenges have you come across?
PL. The merger was finalized in 2001. Since then, we have had to merge different systems into one consolidated set of global systems. The biggest challenge has been that we have to do it parallel to supporting a growing business, so there has been many dependencies and constraints on budgets , resources, environments and the ability to launch new things in an organization that is changing and growing fast.

FST. Do you have an all new core system?
PL. We have a whole new set of systems because very few of the old systems were good enough to continue. Most had to be replaced. We have also taken data out of the existing legacy system s and store them in one global repository and we are building an organisation around that currently.

FST. Is it changing the way the data works? Do you have a way you can access it?
PL. Yes, but we are implementing it gradually, so it’s not a big bang. It’s on a need basis, when the systems need it. It has been slightly more challenging than expected to do that to be quite honest.

FST. Has the credit crunch affected you at all? Or is this something you are not exposed to?
PL. Not really, although we do feel the concerns i t raises , and it causes the bank to be more ambitious on risk management and on enforcing systems and procedures in this area. It also have an impact on the general economic climate and the costs Nordea is willing to commit to going forward. Thing has become more uncertain, so I suppose the prioritization regarding IT-resources will be more tough.

The credit crisis has of course created volatility, and that impacts capital markets. But I think it has both a positive and a negative impact, because volatility also offers possibilities. We’ll just have to make sure that we are able to manage, which I believe we are.

FST. Are you going to prepare for the worst-case scenario?
PL. Yes and no. As mentioned, without having inside knowledge, I don’t think Nordea is impacted by the credit crunch as such, but of course will be impacted by a slow-down of the economy. We are prepared for that through tight risk and cost control and cost-flexibility.

FST. Going forward, what will you be focusing on in the years to come?
PL. Further development of our risk management structure. Moving towards more electronic trading, algorithmic trading and electronic servicing of customers. From my internal IT perspective, it is to get the Capital Markets Computing center up and running and working efficiently and according to the requirements.

Peter Lunding is Global Head of IT and Market Data in Capital Markets Products for Nordea. He is responsible for defining the vision and strategy as well as a managing the development, maintenance and support of Markets IT systems teams.