Flexible service to suit your needs

Our goal is to simplify life for our customers and utilise technology to offer more flexible and accessible service. At the same time, we leverage our team’s expertise and the Bank’s data to offer exceptional service as well as personal and professional advice.

Ung listakona

Great satisfaction with the Bank's services

Our clear strategy has yielded results in the form of new solutions for customers, increased satisfaction and improved and more efficient service. Customer satisfaction has grown in recent years, as regularly borne out by Gallup polls and Landsbankinn topping the Icelandic Performance Satisfaction Index three years in a row.

Almost all of the Bank’s services are available through digital channels or self-service. Our customers are quick to adopt new solutions and in a majority of cases use their phone or computer to take care of banking business, get advice and search for information. On-site service is available throughout the country when needed, through our 36 branches and outlets.

In 2021, our customer base continued to grow and our market share increased. At year-end 2021, the Bank’s market share in retail banking was 39.5%, according to the Bank’s data, and has never been higher.

Better housing loan terms and better service

Over the past three years, we have almost continually offered the lowest rates on non-indexed housing mortgages. We have also improved the mortgaging and refinancing processes, making them simpler and less time-consuming. This has led to people increasingly choosing to take out mortgages with Landsbankinn. In 2021, we granted over 1500 housing mortgages to first-time buyers, a 30% increase from 2020. Our market share among first-time buyers was 46%. We granted new mortgages to almost 9000 households during the year and around 29% of our customers with extant mortgages decided to refinance their loans. There was high demand for housing mortgages and lending increased by 25% between years.

Market share in the retail market
Market share in housing mortgages*
Market share among first-time buyers**
*Source: Gallup
**Source: Central Bank of Iceland

Majority chooses non-indexed housing mortgages

A great majority of new and refinanced housing mortgages in 2021 was non-indexed, or almost 92.5%. Around half of these mortgages carry a fixed interest rate. We saw how the rising policy rate led many customers to fix the interest rate on their variable rate loans. To apply for fixed rates, our customers only needed to touch the “Fix rate” button in Landsbankinn’s app. Alongside rising interest rates in the latter part of the year, many customers took advantage of this feature, which we introduced in 2021.

Another change we introduced this year was to offer more favourable terms on fixed-rate loans if the mortgage ratio was lower than 60% of the assessed real estate value; even more favourable with a mortgage ratio under 50%.

Financial advice in traditional and remote meetings

By far the greatest number of business that previously required a bank visit can now be taken care of through the phone or computer. The need for quality financial advice remains unchanged or has even increased. Our focus on providing quality advice and flexible service has as a result strengthened even further.

In October 2021, we changed our branch opening hours, previously open from 9 in the morning, to 10-16. At the same time, we offered customers the opportunity to make appointments for financial advice through Teams between 10 to 18 every weekday. This increased the flexibility of our customer service, meeting the need of customers to have access to us outside of traditional opening hours. One of the changes accelerated by Covid-19 is the transition to remote meetings and we’ve all become much more familiar with using such communication channels. Remote meetings ensure that customers have easy access to advice, regardless of domicile, and vice versa, allowing employees from all around the country to help regardless of their location.

Kona í ráðgjöf

Appointments well received

In 2021, customers made 34,000 appointments for financial advice or phone calls from the Bank; a 16% increase from the previous year. Our customers have been enthusiastic about this new service with an increasing number choosing to make an appointment for financial advice over the phone or through remote meetings.

More self-service equipment accessible around the clock

When we adjusted our opening hours, we also made changes to the self-service equipment in branches, adding ATMs, coin counting machines and coin roll dispensers and making more of them accessible around the clock. In the capital region, cash service is now available from tellers in Borgartún 33 and Austurstræti 11. Our team in all other branches is as before eager to assist customers in the use of self-service equipment, online banking and the app.

Kort af útibúaneti Landsbankans

New options in sustainable saving

We introduced two new sustainable savings options in 2021. One is an asset allocation fund managed by Landsbréf, Eignadreifing - sjálfbær, which invests solely in financial instruments, such as equities, bonds and unit shares in issuers who operate on a sound sustainability platform. The other is a sustainable savings account, Vaxtareikningur sjálfbær, for both retail and corporate customers. Landsbankinn finances sustainable projects for the same amount as is deposited to Vaxtareikningur sjálfbær. Landsbankinn’s sustainable finance framework lets us allocate funds to various sustainable projects in a transparent and credible manner. Sustainable savings products give our customers the opportunity to support projects that contribute to our environment and community. We are proud to offer customers these options.

The pandemic changed our practices

The Covid-19 pandemic has led to various changes in how people consume goods and service, manifesting in increased online shopping. More of us also got used to taking care of our bank business online. Indications are that these changes will be permanent. Bank branches were closed for a long time, or access limited, while the pandemic raged in 2020, causing fewer transactions to be carried out by branch employees on behalf of customers during physical bank visits. Once restrictions on gatherings were eased, visits to bank branches and transactions undertaken there have not returned to pre-pandemic values. Customers have embraced new ways to bank, use of digital solutions has increased and the Bank’s Customer Service Centre solves a growing number of issues. Whether this impact of the pandemic will be permanent only time can tell - we consider it likely.

Tasks are done all around the country

Landsbankinn has an extensive network of branches and outlets spanning the country, staffed by enthusiastic and knowledgeable people. When measures against the pandemic put a limit on access to our branches, the jobs and projects done in branches changed, freeing employees to tend to new and different duties. At the same time, the demand for various advice, especially about housing mortgages, grew. We decided to take the opportunity to spread various tasks and responsibilities more evenly across the branch network. We took up a system that allows employees throughout the country to act as advisors and provide service to customers regardless of physical location or residence. A member of our team working out of Snæfellsbær or Dalvík could provide advice and assistance to a customer in Reykjavík. This improved customer access to expert advice, shortened wait times and put our team’s time to better use and diversified their work. Our team is very happy with these changes, especially employees in rural Iceland.

Processing mortgages for the entire country a welcome challenge

“Our main work here in the branch is centred on advice and service to corporates and individuals about loans and deposits, along with general services, such as cash, payment transfer and payment service. Our catchment area is no longer limited to the Snæfellsnes peninsula or parties with ties to that location - we now serve customers around the country. Recently, our main work has been centred on housing mortgages, with customers establishing new mortgages, refinancing, fixing interest rates, etc.

Rafbíll í hleðslu

More buyers purchase eco-friendly cars

In 2021, the number of eco-friendly cars multiplied, which was noticeable in the increase in loans to purchase eco-friendly cars. In 2020, around 30% of car loans were to finance eco-friendly cars. This ratio had jumped to 49% in 2021.

Don’t forget Aukakrónur

Aukakrónur is the strongest benefits system in Iceland, with Landsbankinn’s customers colleting 509 million Aukakrónur in the year and purchasing goods and services with the programme’s partners for 431 million Aukakrónur. We partnered with já.is in 2021 to let customers with Aukakrónur search for places and products on which to spend their Aukakrónur. The balance of the Aukakrónur card is easily accessible in the app and in online banking. Customers accrue Aukakrónur when they use their credit cards with our Aukakrónur partners. The purchase discount is up to 15% and, in addition, the Bank adds 0.2-0.5% of all domestic turnover and payments by instalment to the Aukarónur account.

Housing to suit our needs

We not only made changes to our services in the capital region but also elsewhere in Iceland. Our service outlets in Thórshöfn and Djúpivogur have moved to new facilities that are better suited to our operation. We also participated in a joint project to open an office collective and remote work facilities in Thorlákshöfn, moving our own operation to new and more fitting facilities there. The Ísafjörður branch also moved to more practical facilities in 2021.


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