In its updated long-term strategy, OP Financial Group aims to become a diversified services company

OP Corporate Bank plc
OP Cooperative
Stock Exchange Release
10 June 2016 at 9.00 am (EEST)

In its updated long-term strategy, OP Financial Group aims to become a diversified services company

The Supervisory Board of OP Financial Group's central cooperative has confirmed OP Financial Group's strategy and Group-level strategic goals.

According to the new strategy, OP Financial Group aims to gradually change from a plain financial services provider to a diversified services company of the digital era with strong financial services expertise. The strategy highlights customer experience enhancement by digitising services and processes. At the first stage, business diversification involves expanding, for example, the health and wellbeing business.

- This is a major strategic renewal amid the dramatic transformation underway that will change our present business models and practices, says Reijo Karhinen, President and Group Executive Chairman of OP Financial Group.

- We see digitisation and change in customer behaviour as a great opportunity for OP. When the operating environment changes, OP Financial Group must reinvent itself too.

Diversified services company of modern times

The underlying reason behind the updated strategy is the dramatic and fast digital transformation underway in the financial sector, which will constantly attract new market entrants. At the same time, digitisation provides an opportunity to improve customer experience, create new business and streamline the current processes.

In the years to come, OP intends to make health and wellbeing services its fourth business line alongside Banking, Non-life Insurance and Wealth Management.

- Our mission is to promote the sustainable prosperity, security and wellbeing of our owner-customers and in our operating region. Expanding health and wellbeing services is a natural part of implementing our mission and a major step on the way from a financial services provider towards a diversified services company, explains Reijo Karhinen.

Heavy investments in customer experience and service digitisation

OP will initiate a large-scale development programme aimed at speeding up the digitisation of Banking, Non-life and Wealth Management services. Annual development expenditure will increase to 300-400 million euros in the next few years, i.e. the amount for the next five years will total up to 2 billion euros.