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How Nordea Finance transformed its retail finance capabilities

Written by Content Team

The company

Nordea Finance is part of Nordea, a full-service universal bank with a presence in 19 countries, including four Nordic home markets; Denmark, Finland, Norway and Sweden, where Nordea represents the leading bank in the region.

Nordea Finance serves 9.3 million household customers, over half a million businesses and claims the title of the third largest corporation in the Nordic region, and one of the top ten financial services companies in Europe, based on market capitalisation.

The goal

Before engaging with Divido, Nordea Finance already had retail finance capabilities that were serving the company’s merchant base. However, its legacy platforms had a number of issues that they were looking to solve for.

A global solution: Nordea Finance had multiple platforms across geos with differing capabilities. This created a highly complex IT infrastructure that Nordea was looking to address and simplify. Nordea Finance was looking for a solution that could be implemented across its markets and have multi-geo capability for its international merchants.

Omnichannel capability: Nordea Finance’s merchant base, traditionally, had been offline, however it was seeing a sizeable shift towards eCommerce in its base and needed a solution that could work across channels, allowing merchants to start customer journeys in store and continue online, or vice versa. Its existing platform was digital/ paper-based and worked only for in-store purchases.

Growth driver: Nordea Finance saw the growing opportunity offered by retail finance as a valuable revenue stream and wanted to provide an offering that would allow the organisation to capture this revenue.

The solution

After initially considering building a solution, Nordea Finance appointed Divido to provide a global platform. The decision to partner with Divido was based on:

Omnichannel/multi-geo capabilities: Divido was able to offer a solution that would allow Nordea’s merchants to transform their customer journeys by allowing a customer to move seamlessly between channels during a customer journey. Additionally, with Divido, Nordea could serve those merchants with multi-geo requirements through one simple integration.

Whitelabel solution: using the Divido white label solution, Nordea Finance could retain full brand control over its retail finance offering and control the user journey, to keep it streamlined for the end customer.

Configurability: the flexibility in the Divido platform allowed Nordea Finance to customise journeys and credit off erings across markets, providing the benefits of a global platform with local market customisation.

Speed to market: one of the primary drivers behind partnering with Divido was the speed to market that Divido could offer, with a tested solution. This offered a lower risk, faster-to-market solution, compared with a build in-house

Retail finance expertise: Nordea Finance also saw an opportunity to benefi t from Divido’s expertise in retail finance. As a key revenue stream for Nordea, the organisation wanted to optimise retail-fi nance products and journeys, and felt that partnering with a specialist in this area would allow access to this knowledge, which at the time, wasn’t available in house.

The results

Nordea Finance has implemented the Divido platform in three of its four biggest markets; Norway, Finland and Denmark, with Denmark completing an end-to-end integration in just six weeks.

In the three months since launch in Denmark, Nordea Denmark has financed over £10 million of transactions through the platform. The first merchants migrated from the legacy platform to the Divido platform have reported significantly improved results in terms of conversion rates, improved customer journeys and enhanced in-store experiences.

Nordea Finance now has an accelerated programme to migrate merchants across in Norway, Denmark and Finland, and expects to go live with merchants in Sweden, in H1, 2021.

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