 Wow Thank you for coming to see me talk about in dough. I am I am humbled you. I know you have a busy schedule My name is a good. I am the CEO and co-founder of Intel Savings Bank, and I am also a banker in recovery That was a joke. So in though is the first Challenger Bank and only I think only Challenger Bank out of Iceland and I am thrilled To stand here today and tell you about what we're all about and I want to introduce you to my friend This is in though So today I am going to talk about sort of the origins of in the where do we come from because it's an important Background to what it is that we're trying to achieve I'm also going to talk to you about where we are today and and a pretty obvious ending of where we are going it Can be said that the origins of in dough are in the last century So quickly my co-founder and I we were in the same class together in elementary school. It's a very small country This is a picture of an essay we did together and That hangs on our wall of fame at our offices Right next to our coffee machine and our banking license because we got a banking license in February In class We did projects together, so we know we work well together we play basketball in the schoolyard and Debated whether Juran Juran or wham was the better bank So this is the same time as stranger things happens We were young. We're still young, but most of you probably weren't even born That is also the last time before us When a banking license was granted in Iceland. It's in the late 80s So we knew we worked well together and then fast forward a little bit and We got swept up in the banking boom of the 2000s cheap funding high valuations Pretty much every person in Iceland to graduated from university started working for a bank and We were going to be the masters of the solar system We knew banking better than anybody This couldn't fail we had our then president describing us as the new Vikings look out world the Icelanders are coming Couldn't fail. This could not go wrong Only it did spectacular 2008 Things came to a halt the party ended as parties always do and then you have to clean up and That was a job that I had after the party. I was cleaning up But it wasn't only cleaning up Iceland itself was in a massive trouble because unemployment went up Interest rates went up People lost their savings Prizes ballooned and there were protests in the streets People hated bankers and they hated politicians We even set a Christmas tree on fire in the center of town so this was really serious stuff and Back in those days There was this idea that the banks needed to be resurrected. They needed to rise up again having learned a valuable lesson That's was my job and my co-founder's job for for a few years They did rise up Only exactly the same as they were before more boring More institutionalized more adverse to any change so we left To young middle-aged man had it for greener pastures, but we couldn't shake this idea that Well, the banks still need to change not only in Iceland, but pretty much all over So in 2018 we met in a coffee shop So what do you want to do when we grow up? remember we're still young and Then after about three or four espressos We had a very good idea or so we thought Let's build a bank. I Mean between us we have around 40 years of experience in running a bank and and we know how the business works I mean how hard can it be? We know the banks need to change if they don't change they will just go the way of the dinosaurs and they will die They will be pushed up So if we agree that there is room for a new bank, let's just build one Now it can be argued that this was a very very bad idea In fact when we started we got all kinds of comments You will never get a banking license. We just won't Because if you could it would already have been done Well, why shouldn't we get a banking license? We know how the business works. So we'll just go for it We know what it takes to build a bank So off we went and said well, we're not gonna listen to that Then we were told well if you do get a banking license, do you know how much it costs to run a bank? Yes, we do We worked there for a number of years and we know exactly how much it costs to run a bank But we also know that the banks are an epitome of inefficiencies They are expensive because they are just way way way too inefficient We also know how much it costs to run an efficient bank So we did not listen to that either then we were asked so why a bank What are you trying to achieve? I mean banks are arguably the most difficult companies in the world to create Surely you can do better than that. Surely you can do just start smaller and achieve what you want to achieve Well, no Because what we wanted to do we wanted to go right into the heart of banking We work there pretty much every department and we know what is the most valuable banking product out there Is the customer relationship with all of you the retail customers People with their salary account that is the single most valuable Component product of banking and if you want to go into heart of banking if you want to really capture that You have to be a bank There is no other way So the product that we are creating and have created is Your primary account. It's the new home for your money now what we are also thinking is You As a customer with money in your current account You are not source of funding because banks traditionally think of you as a source of funding To do stuff on the lending side, which is where the party is I've been to that party. I've cleaned up after it. I really do not want to go back into that kind of party So we are focusing on the current account making that experience the best experience we could possibly possibly generate But that's not enough So what kind of bank and all the product, but what are you going to be fair? transparent and fun and Why that because there was a huge survey done in Iceland in 2018 the government asked people Thousands of people if there was a new bank in Iceland, what would it represent in your mind? Fairness simplicity transparency fun That's what we all want in a company now. There are bankers out there who might say well You know, I'm a bank We can't be fun. Well, yes, you can and if you can't step aside and let somebody else be fun Because that's what the customer wants and the customer is always right Okay, but that's not all we need to have rates We need to have the rates on our accounts that just reflect this transparency and we do that by telling people What are we doing with your money? What what risk are we taking with your money? And you will be paid accordingly all kinds of hidden fees If if things don't cost us money, we're not gonna charge you for them. I mean that doesn't make any sense So we had this brilliant idea. This is what we're gonna do We're gonna go into this space and we are going to dominate The primary account market the most valuable product in all of banking anywhere But it would have been a very very short journey on our part if it had just been the two of us alone Now we know banking we know banking quite well actually But we know nothing about marketing and we know nothing about it and I think one of the most valuable lessons that I learned and Hopefully I can share with with others is that as a founder you need to know what you're good at That tends to be obvious But it's really really important to understand what you're not good at and try to get people to do that so We had a team of superheroes joining us Yes, we are a team of 13 people the 13 of us created and launched a new bank and These people they are driven by the same motivation and passion as we are and pretty soon We also had people joining us saying when can I open up an account? Hang on a bit. I need to build this thing first and then on and on until We said let's just listen to these thousands of people that are helping us out. They are telling us what they want in a bank Let's listen to them and let's let's use them to help make Indo better So we are the product development is done real time with our customers. I think this is a small market I know What are the odds that that we would start a company having done an essay and when we were 15 But the market cap of the Icelandic banks is about 5 billion euros and we are capturing 30% of the revenues through the products that we're developing. It's a huge massive market We haven't even launched yet. We are still in our beta We are invitation only but we have three and a half percent market share in the current account in Iceland think about it We haven't started and we have this market share and the customers. They love us our natural net promoter score 77 All the other banks are you know way in the negative numbers? So we know what we're doing. We're building this with our customers with our indones because they love what we're doing Why stop there? I mean if your country is in the same situation You as a customer of a retail bank with your salaries you feel neglected and you feel well I'm not actually the customer. I'm just you know the source of funding and nobody listens to me We're coming And it's not rocket science it's not Complicated it's like eating an elephant just one bite at a time But if it's rocket science don't listen to the naysayers We've we ignored them and just get the perfect crew and enjoy the ride Thank you