Developments in Banking


Customers of Landsbankinn can take care of most aspects of general banking business online or through ATMs and have little need to visit branches, unless they prefer to do so. While the role of banks is changing, the need for financial advice remains current and has even become more pressing.

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Developments and changes to the service offered through bank branches and outlets mostly centre on improving access to self-service solutions, and on instructing and enabling customers in the use of such solutions. This increases the number of channels through which customers can tend to their banking business and improves their experience.

Better banking in branches and outlets

In 2016, changes were made to the Bank's facilities in Hafnarfjörður, Hamraborg and Mjódd. Key to these changes is the increase in number of ATMs, online computer terminals and other self-service solutions. Prior to implementing these changes, employees were trained in welcoming customers, and offering assistance or instruction on the use of the new solutions. The advantages are obvious - the customer saves time and effort, there is less strain on branch employees and waiting time for customers is reduced.

Experience of these changes has been positive. Around half of all customers who previously visited branches to seek service in simple matters now tend to their own business through self-service solutions or have activated automatic functions, such as direct debit.

The role of branches has undergone changes, from handling transactions which customers can now tend to themselves online or through ATMs, to being centres for financial advice. In 2016, 8000 Landsbankinn customers received so-called 360° financial advice, a comprehensive financial review that extends to all aspects of household finances. For more information about 360° advice, see the chapter Personal Banking.

Customers who take advantage of self-service amd automation

53%of customers

Overdraft through online banking

On-going development of online banking for individuals and corporates

Landsbankinn's online banking platforms undergo continuous development. The design, interface and security of online banking for corporates was changed significantly in 2016 and various useful new features introduced in online banking for individuals and the mobile bank, L.is.

The design of online banking for individuals and corporates is now uniform, contributing to a stronger and more comprehensive user interface that harmonises distribution channels and facilitates development and programming as both platforms now share a common architecture.

Overdraft authorisation in online banking for individuals and mobile banking

Customers are now able to apply for and alter the overdraft authorisation on their accounts through online banking for individuals and mobile banking. This feature is based on an automatic debt programme which evaluates the position and business history of each individual customer to determine how high the overdraft can be raised, having regard for other obligations, without a formal credit assessment. This new feature improves service to customers, as customers benefit from being able to adjust their overdraft authorisation without assistance. Further similar developments can be expected, i.e. that more and more products and services will become accessible through online banking or other self-service solutions.

Changes to user interface in corporate online banking

Extensive improvements were made to the design of corporate online banking with an eye to simplifying use, improving readability and adapting the interface to tablets. All features and views are still available but appear different, in a new font, with tables, buttons and input fields. The changes were made to unify the design and function of both online banking platforms.

Companies increasingly use self-service solutions

Company employees increasingly tend to their employer's banking business independently, without seeking assistance from bank employees. In 2016, companies handled 94.5% of all payments independently.

Users of corporate online banking increased by over 12% in 2016. At the same time, logins to corporate online banking increased by 15% and page impressions by 12%. Customers increasingly choose to use an app to log in, instead of the physical authentication token. At year-end, the app was used in 41% of all logins; the token in 59% of logins.

Landsbankinn continuously works to improve its technological environment. In 2016, emphasis was placed on updating corporate online banking. New credit card and securities statements were introduced in 2016, as well as a new and more flexible form of access control.

Various improvements were made to corporate online banking and new features made available. The overarching objective of this overhaul was to increase the information available and improve the presentation of such information.

Use of corporate online banking

12%increase YoY
Visits to personal online banking
Visits to mobile banking

Landsbankinn's mobile banking platform was chosen the best web app in 2016 by the judging panel of the Icelandic Web Awards. The award was presented on 27 January 2017.
More about mobile banking

Most increase in logins to mobile banking

Use of all online banking platforms increases every year. Use of mobile banking, l.is, increased most, with monthly logins growing by 47% between January 2016 to December 2016; logins increased by 73% on a YoY bases, between 2016 and 2015. Use of mobile banking has increased much faster than that of online banking for individuals.

Landsbankinn's mobile banking platform was chosen the best web app in 2016 by the judging panel of the Icelandic Web Awards. The award was presented on 27 January 2017.

Strong emphasis on security

Landsbankinn places a great deal of emphasis on security. The Bank participates in various collaborations on security matters, including the group Nordic Banks for Security. Landsbankinn utilises a security system from RSA, one of world's strongest providers of Internet security solutions. RSA's systems are extremely powerful and the collaboration with RSA also provides the Bank with access to valuable expertise.

In September, Landsbankinn received the prized Best in Class 2016 award from RSA. The award recognises methods and innovative solutions in integrating RSA's security system with the Bank's other security measures.

New security system for corporate online banking

A new security system from web security firm RSA was implemented for corporate online banking in 2016. The new security system combines risk analysis and the use of security tokens to maximise security and prevent fraud.

The risk analysis involves the security system learning to recognise user behaviour and context for each user in order to identify deviations.

An authentication code can be sourced via two different channels; through an app or by using a physical authentication token. A single user can make use of both the app and the token, based on convenience.

New calculators for vehicle financing and housing loans

New calculators for vehicle financing and housing loans were launched on the Bank's website in 2016. The calculators are easy to use and offer a wider variety of options than before.

The new housing loan calculator allows customers to compare three different loan types side by side, viewing instalments and the cost of each type of loan. It is easy to set up a basic scenario in the calculator by simply entering the market price of the property and the amount the customer wishes to borrow. It is not necessary to choose one loan of each type, inflation-indexed, non-indexed and mixed; rather, it is possible to compare three non-indexed loans, three indexed loans or three mixed loans (or two loans of the same type and a third of a different type).

The calculator for vehicle financing is similarly simple to use. The customers simply enters the purchase price of the vehicle, his/her available funds and the wished for term of loan or vehicle contract. The calculator will show monthly payments, costs and an instalment plan. The results produced by the calculator change each time the entered assumptions are altered.

The use of ATMs decreased by 5% between years. Conversely, the total amount of withdrawals increased by 13% between 2015 and 2016. As in previous years, the use of ATMs peaked in summer, with more numerous transactions and higher amounts withdrawn.

Landsbankinn's branches and outlets at year-end 2016

Landsbankinn has in recent years bought more next generation ATMs. They allow customers to both withdraw and deposit cash. With more deposit ATMs, use of the machines has increased significantly.

As before, Landsbankinn operates the most extensive ATM network in Iceland, with 75 ATMs in 63 locations throughout the country at year-end 2016.

Changes to the branch network

At the end of 2014, Landsbankinn operated 32 branches and outlets. Following two mergers in 2015, with Sparisjóður Vestmannaeyja and Sparisjóður Norðurlands, the number of branches and service points increased and they currently number 37. Landsbankinn operates the most extensive branch network of any Icelandic bank.

In early 2016, Landsbankinn's Seyðisfjörður branch moved to the facilities of the Commissioner of East Iceland, at Bjólfsgata 7 in Seyðisfjörður. Landsbankinn had operated a branch in Leifur Eiríksson International Airport since it was opened but was outbid in Isavia's tender for continued banking service in the airport and closed its premises on 30 April 2016.

In 2016, the branch at Hvammstangi was changed to a service outlet from the Sauðárkrókur branch. Similar changes will be made at Þorlákshöfn in 2017 and service as a result provided from Landsbankinn's Selfoss branch. These changes represent cost-efficacy measures yet have little to no effect on the Bank's customers or on the services available at each location.

Landsbankinn's branch network

Artboard 1
More about the branch network