It is important to understand which issues and drivers are priorities for the bank’s customers and stakeholders when they make their choices, as well as which areas are considered most important for the bank to contribute to society’s sustainable development.
As part of the process to fully comply with the requirements of the Corporate Sustainability Reporting Directive (CSRD), NOBA conducts a double materiality assessment (DMA).
In 2023, NOBA revisited its previous materiality assessment and conducted a DMA. The purpose of this DMA is to identify, understand, and assess any actual or potential impacts that NOBA’s business might have on society, as well as to identify, understand, and assess any financial risks or opportunities for NOBA’s business arising from sustainability-related events.
We have identified the two entity specific topics of Financial Health and Responsible Lending, to capture and disclose our core business impact as accurately as possible.
The double materiality assessment provides NOBA with the tools to identify our actual and potential impact on the environment, society and people, with specific regards to the impact on human rights.
We identified six areas where we see that we have a material impact:
The double materiality assessment has further provided our sustainability strategy with a dual perspective on the way our business impacts society as well as on how society impacts our business. This has led us to further understand how to manage impact, risks and opportunities related to sustainability matters. For example, we integrate ESG-risks into our steering documents, as well as our enterprise risk management framework, to better attend to non-traditional risks that can affect both our customers and our own business.
Financial Health and Responsible lending is NOBA´s key ESG topics, which are underpinned by robust risk management, business ethics, and corporate governance. Our approach to considering a broad range of ESG topics guides our thinking and decision-making, ensuring we remain focused on the right issues and build long-term value in our business. We will continue to engage with our stakeholders to re-evaluate our key ESG topics regularly.
We strive to enable financial health for more people. We offer mortgages regardless of the applicant’s type of employment, consolidate smaller loans into one to lower monthly payments, and provide flexibility and balance through one of the most popular credit cards in the Nordics. Additionally, we ensure that people over 60 can stay in their homes longer.
We are determined to constantly work towards an increased financial health and NOBA’s sustainability work specifically addresses the importance of managing our business to comply with the needs of our customers and society at large.
NOBA offers tailored personal financial solutions and incorporates strong, responsible lending practices into our operations and throughout the customer journey. Along with promoting financial health, responsible lending is our most important process and a prerequisite for practicing what we preach. Our digital services make it easy for customers to contact the bank and do their banking whenever and however they want.
NOBA is a leading specialist in the Nordic market for credit assessment, considering multiple areas in the credit approval process. Each loan application undergoes a correct and satisfactory credit assessment using a tried and tested lending process. The assessment is conducted in accordance with good lending practices and NOBA's General Credit Policy, which aligns with external regulatory requirements. Customers must have a financial buffer, verified through methods such as a left-to-live-on analysis. The credit assessment process combines policies, assessment regulations, internal credit assessment models, and an estimate of the applicant's ability to pay. This ensures that loans are only offered to creditworthy individuals and households, and customers are never offered loans they cannot afford, to avoid contributing to over-indebtedness.
Our customer service is one of our most important tools in our ongoing customer dialogue, and we are committed to provide the best possible service to ensure trust and customer retention. NOBA works systematically and methodically to maintain the highest quality in our interactions with customers. Customer advisors are trained according to a dialogue strategy based on a methodology that ensures a thorough analysis of each customer's needs and situation to find the right solution for each individual.
Responsible marketing is a natural part of our commitment to sustainability. We always strive to communicate about our products and services in the easiest and most straightforward way possible. We do not omit essential information or provide ambiguous or incomprehensible details about any offer, product, or service that we are advertising. Our Responsible Marketing Policy outlines our dedication to promoting our products and services in line with our core values and ethical standards and is integral to our operations.
Banks often discuss financial health in terms of debt and loans, focusing on the potential consequences of credit losses and their negative impact on society. These aspects are undoubtedly crucial. However, at NOBA, we also look beyond the numbers. We recognize that financial health is far more complex than a mere figure. We know that money matters, both in the short and long term. Life is a journey with ups and downs, emotions, contrasts, and unforeseen events, mirroring the complexities of personal finances.
The connection between economy and health is one of the most important aspects for us at NOBA when we talk about responsible lending. The more we comprehend, the better we can contribute to reversing the trend of declining mental health caused by financial stress. Through cooperation and knowledge sharing, we can collectively learn and ensure that more people are enabled to increase their financial health.
The Relationship report has been released for four consecutive years. The 2024 Report dives deep into our relationships to money, housing, and each other. The report, which was produced together with Kantar Sifo, and with expert comments from the Swedish Gender Equality Agency, is part of a broader initiative to work proactively with various aspects of financial health. A topic whose relevance has increased even more since many households have had tighter finances on the backdrop of high inflation and rising interest rates.
It is also clear in the report how little that has happened in terms of increased gender equality in the housing market. It is still the women who come out short when it comes to the joint household finances, having to tap into their savings to a greater extent. At the same time, the lack of dialogue and consensus is proving to be greater than ever. According to the survey, 650,000 Swedes remain in their relationship due to fear of what will happen to their partner in the event of a divorce or separation.
The podcast where money and finances are discussed in a fun and easy-going way. Hanna Belander from NOBA and Pingis Hadenius alternate their own conversations with guests and experts where they talk about everything from the global economy, saving, health, relationships to smart everyday finances. In each episode, personal finance issues are discussed from the Economista community.
