Nordea Bank AB (publ) targets a fourfold increase in its investment advisory clients by using a robo-adviser named "Nora," Bloomberg News reported Dec. 18.
The robo-adviser uses an algorithm to lead clients into portfolios that fit their risk and financial profiles, according to the report, which added that the robo-adviser has been in operation in Sweden since Dec. 15. The bank aims to offer the new service in Norway and Finland in early 2018 and in Denmark by the summer of that year.
In an interview, Katja Bergqvist, head of Nordea's Investment Solutions & Advisory Center, said the number of the bank's investment advisory clients could reach around 2 million per year over the next two to three years, compared to 500,000 clients currently. In October, the lender said it would cut 6,000 jobs as part of a digital transformation management in pursuit of increasing competitiveness.
Nora asks customers 11 questions about their income, family, debt, risk awareness and risk profile before presenting a fitting portfolio, Bloomberg noted, adding that the robo-adviser considers the customers' view of risk and their capacity to take certain risks depending on disposable income and margins.
Bergqvist added that despite the layoffs, Nora will not replace any staff but will instead help the lender reach more customers without adding jobs.