By Danielle Pamela Neben

Last Wednesday I had the opportunity to present at the 2017 RB conference on: The Digitalization of Financial Services. There were some fantastic speakers, including Jason Bates (founder of Monzo Bank) and Rich Sheriden (writer of Joy, Inc. and owner of Menlo Innovations).

My presentation was titled: Digital Trends. There were three key themes that I focussed on:

• Digital trends relating to financial services;
• Digital strategy: considerations for financial institutions on adapting in this new environment; and
• Valuation: does digital strategy have a positive impact on valuations?

My approach was based on my experience in dealing with the equity markets during my time at HSBC and having been a Board member at Landsbankinn, representing shareholders with a focus on strategic direction and preparing the bank for a public listing in the near future.

I attach a copy of the presentation. Should you wish to know more, please feel free to contact me. 

By Danielle Pamela Neben

On 10 May 2017 Reiknistofa bankanna RB (an IT service centre for the Icelandic Financial Market) will be hosting its annual conference in Reykjavik. This year's theme is The Digitalization of the Financial Sector.

I feel honoured to be presenting among such an impressive list of speakers, including Jason Bates - Co-founder of Monzo Bank.

I will be speaking on Digital Banking Trends - approaching this from my perspective as a previous Member of the Board at Landsbankinn & Chair of the Strategic Development Committee, and how Equity Markets regard IT and digital initiatives in their bank valuations.

I hope to see you there!  

By Danielle Pamela Neben

In March 2017, the IMF issued a report on Iceland regarding the lifting of the currency controls and the potential impacts:

IMF Concluding Statement on Iceland

It it very interesting to note their recommendation of policies of high quality bank ownership, i.e. finding strategic buyers being both conservative and with a long term commitment to Iceland.

Having been a Member of the Board at Landsbankinn, I firmly believe this is achievable.

What is also encouraging is to see that Wellington Management recently invested 5,26% in N1, a leading fuel distributor in Iceland.

The banking sector has changed positively since the crisis:

• The Icelandic government and the major banks have had credit ratings upgrades to BBB and above
• The Financial Services Authority has been instrumental in restructuring and implementing effective monitoring of the banking sector - they are extremely proactive in both their onsight and offsite reviews
• The banks have successfully raised unsecured credit funding, attracting major institutional investors
• The banks' balance sheets have improved significantly, with some of the strongest equity ratios across Europe and excellent liquidity 
• There has been significant focus on risk management, especially the improvement of credit risk
• All banks have implemented attractive dividend policies
• GDP in Iceland strong as a result of the sustainable growth in Tourism

The current bank shareholders, i.e. the Icelandic government and international investors, have clearly stated that they wish to list the banks - most likely with dual listings in Reykjavik and in Europe.

It is crucial that the Boards and CEOs at the banks invest in their Investor Relations strategies - with the aim to attract the ideal shareholders going forward. 

Doing a gap analysis of the Investor Relations team and the strategy, and the execution thereof is crucial to attract these investors as there is a fierce competition for capital. 

Maresías provides Investor Relations advisory services, where Danielle Neben led one of the top global IR programmes whilst at HSBC: from highlighting the issues from the sub-prime crisis leading to the financial crisis, and up to the successful $17 billion rights issue in early 2009. For more information, please feel free to contact us.

By Danielle Pamela Neben

​A well informed and supportive investor base is a key corporate asset

There is fierce competition for capital, whether in Iceland or abroad. With Iceland´s removal of capital controls, Icelandic companies will have opportunities for expansion and the potential to tap international markets for funding.

A proactive approach to Investor Relations is similar to providing superior customer service to attract and retain investors, who are supportive of a company strategy.

Whether a company has institutional or private shareholders, or is looking to raise capital - ongoing, transparent and consistent two-way communication of your company strategy, major policies, results and even negative events are key to building positive relationships. This lays the foundation for future resolution of challenges and conflicts.

Tapping into investor and analyst feedback is a valuable source of information for a Board and Executives. They have insight into a company's competitors, whether in Iceland or abroad, and successful factors driving the businesses.

Engaging directly with investors between shareholder meetings is becoming increasingly common. An investor engagement strategy should include these principals:

• Vision of Investor Relations
• Key management who will represent the company in most interactions, with specific Board members addressing executive compensation, corporate governance and any major changes
• Shareholder targeting
• Clear disclosure guidelines 
• Driving an efficient Investor Relations calendar
• Incorporate feedback loops to the Board and Executives