Our main stakeholders are the customers of Arion Bank, shareholders, our human resources and society as a whole. At Arion Bank we realize the importance of listening to the differing needs of these groups and understanding what is most important to them. Positive and reciprocal relationships with our stakeholders are fundamental to effective teamwork.

Materiality assessment

In 2020 we engaged the consultancy CIRCULAR Solutions, now part of KPMG, to perform a materiality assessment of the Bank. The methodology used is based on identifying risks relating to environmental, social and governance issues and takes into account the Bank’s geographical location and activities. The materiality assessment was used as a basis for analyzing stakeholders, and a survey was sent to employees as well as a sample of customers, suppliers, shareholders and partners at the beginning of 2021. The survey investigated how stakeholders viewed the Bank’s main focuses in terms of sustainability and social responsibility.

The diagram below shows the results of the materiality assessment. The X axis shows materiality based on CIRCULAR’s analysis of what is most important for Arion Bank based on its geographical location and activities, and the Y axis shows materiality according to the assessment of all those stakeholders who completed the survey.

Results of the materiality assessment


The X axis shows materiality based on CIRCULAR’s analysis of what is most important for Arion Bank based on its geographical location and activities.
The Y axis shows materiality according to the assessment of all stakeholders.

Below is a list of the topics asked about in the survey

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The experience and satisfaction of our customers is central to our business. Therefore we are constantly seeking to find new ways to meet our customers’ needs and improve our services. Regular surveys are conducted in order to gauge the customers’ experience and to ascertain how likely they are to recommend Arion Bank based on certain factors. The results of these surveys are used to help develop services and refine focuses. In 2021 we recorded 12,350 suggestions and ideas from customers.

Icelandic society and the Bank’s operations have felt the repercussions of the Covid-19 pandemic over the last two years, and the Bank has worked closely with retail and corporate customers and investors to find ways to negotiate these difficult times. Visits to the branches and headquarters declined sharply in number, partly due to the public health measures, but traffic via other channels such as webchat, e-mail and phone calls all increased. Customers can now also get services and advice face-to-face via the communication platform Teams, making banking even easier and more convenient. In the autumn a new division called Customer Experience was created, a name which underlines the central importance of excellent service and customer experience.

In early 2021 the business hub at Borgartún 19 merged with the Corporate Banking division, the aim being to coordinate and consolidate our services to companies and to increase the Bank’s share on the SME market. We now have a dedicated team of specialists, providing companies with general financial services and helping our branches outside Reykjavík to provide the same level of quality services to companies in their locality. The partnership between Arion Bank and Vörður went from strength to strength and at the end of the year, the Vörður team moved into the Bank’s headquarters. Our ability to offer top-notch bancassurance services to our customers makes for exciting times ahead.

We offer smart solutions and 99% of all our interaction with customers is now via our digital channels. The Arion app, online banking and the Arion Bank website are open day and night, all year round. Customers can also post questions and leave feedback on the Bank’s Facebook page and our employees respond as quickly as possible. The number of digital users has increased by 21% over the last four years and the Arion app now has more than 100,000 users. The app can be used by anybody, whether they are regular customers of the Bank or not. Anyone with electronic ID can download it, open accounts, start regular savings, buy insurance policies, trade with securities and view their pension savings. The Arion app was named the best app in Iceland for the fifth year in a row by bank customers in a survey by MMR.

Further information on the Arion app

Human Resources

Arion Bank seeks to create a positive working environment where we can attract and retain the best employees. We aspire to create an inspiring working environment where employees are comfortable and satisfied in their jobs. Employees are encouraged to take responsibility for their professional development, knowledge and skills.

2021 was a year of moving forward and change at Arion Bank, while the Covid-19 pandemic continued to leave its mark on the working environment. We listened to employees’ calls for a more varied and flexible working environment by introducing a policy on working from home and our employees have subsequently perceived an improvement in the work-life balance.

The Bank has adopted a clear policy on equality and human rights and an equality action plan. One of the Bank’s aims is for the pay equity audit to show a gender pay gap of less than 1%, and the audit for equal pay certification revealed that the gap was 0.1% this year. We are extremely proud of this achievement.

Further information on Human Resources 

Shareholders and bondholders

Investor Relations specializes in communicating with shareholders, bond investors, analysts and other market participants. Under the Bank’s funding strategy the Bank aims to be the leading issuer in Iceland, a position based on excellent relationships with domestic and international market participants, effective reporting and solid credit ratings from the ratings agencies. Regular meetings are held with investors after the publication of quarterly financial results and at various conferences, while the Bank also discloses information before bond issues and on other occasions.

The annual general meeting is usually held every March. The annual general meeting (or shareholders’ meeting) is the main venue for shareholders to have a say on the management of the Bank. At the annual general meeting shareholders elect a board of directors, auditors and vote on other matters raised by the shareholders or board of directors.

All relevant market information is published in releases to the stock market and any information sensitive to the market will be released through a MAR (Market Abuse Regulation) press release.

Arion Bank arranges quarterly meetings for market participants at which the CEO, CFO and other management present the interim financial results. The Bank aims to hold a capital markets day for shareholders and market participants every two years. The last capital markets day was held in November 2021 and the management discussed developments and changes in the business and provided an update on medium-term targets. The next event of this kind is scheduled for 2023.

Further information on Investor Relations


Arion Bank is a large company by Icelandic standards, and social responsibility and sustainability revolve around running a responsible business and having a positive impact on society and the environment, for example through the Bank’s buying of supplies, lending to customers and investments made on their behalf.

In all the decisions we make, we assess the various interests at stake, with the long-term view being just as important as short-term considerations, and assess the possible gains and risks involved in the decisions and loans we make. Every year we collaborate on a wide range of exciting investment projects with our customers with the aim of strengthening the business sector in this country.

Further information on responsible banking