Preparing for the future

There’s no doubt that Covid-19 has accelerated changes to the way we work over the past year. ABN AMRO has worked hard to support its clients through the crisis in every area, from clearing to commercial finance. Other changes – major transitions that will shape the world for years to come – have also fed into ABN AMRO's strategy. UK Country Executive Gerben Dragt explains what it all means for its businesses in the UK.

The past year or so has been very unusual for all of us. But now, it also feels like we might be seeing a new beginning. True, we don't know what the future holds – or even what the rest of 2021 might look like. The pandemic has reminded us that the most dramatic events can also be the least expected. But we must also look at how the world is changing and plan for thetrends we can see. ABN AMRO’s purpose ‘Banking for better, for generations to come’ reminds us that it’s crucial to make sound long-term decisions for everyone’s benefit.

That's certainly true in the UK. I was announced as UK Country Executive in November 2019 and arrived full of hope in February 2020 – shortly before the start of the pandemic and lockdowns. It really focused our thinking. Top of mind has been the wellbeing of our teams – and making sure we've been standing by our clients as they navigate this uncertain situation.

Looking after our people so they can look after our clients will continue to be our main objective through the next half of 2021. Even as vaccines roll out and economies recover – with some sectors looking quite different post-pandemic – businesses need our support as they adapt.

We're a good example. Most of our colleagues are still working from home but even after Covid recedes there are going to be many new ways of working. We anticipate that we will move to a hybrid approach enabling us to have the benefits of both remote and in-office working.

The best way to know which of them are sustainable is to look at our clients. So long as they feel supported by our teams, and we can grow our business to ensure they get the backing they need, we will know things are working well.

Speak often, act fast

A huge part of that is having a constant dialogue with clients. We are seeing major secular shifts in the economy, as well as some classically cyclical changes – ones we're used to helping clients through. We always strive to understand how those are playing out. Listening to their experiences means we can advise on adapting and growing their businesses forthe long term, as well as events-driven factors such as government support schemes that may soon be winding up.

Just as we took the decision to move to 'working from home' early – to minimise the risk for ABN AMRO teams – we also want to help our clients to act quickly as economies start to get back to normal this year. That means being open and frank about where the risks are – and how we can work together to manage them. No one can say with any certainty what businesses will look like in 2022 – so being close to clients is absolutely key for us.

Sustainable, trusting relationships within our own teams and with our clients supports the idea of ‘Banking for better, for generations to come.’ But as well as major short-term issues to overcome, we can help businesses grow in ways that make sense 20 years from now, too.

Accelerated change

That's one reason we're focusing on three major ‘transitions’ that both ABN AMRO and all our clients and partners are going through. There are undeniable and significant shifts happening in energy, digitisation and mobility that will play out over many years – and will demand every organisation adapts in one way or another.  

• In energy, there's a big need for structured finance to help the whole grid continue its transition to renewables. That's a kind of financing where we have huge expertise. There are also more sustainable approaches for business use of energy – where we can help. And new technologies for large-scale and localised electricity generation will create a range of investment opportunities.

• The need for a more complete digital transition has been accelerated by the lockdowns. We can help finance solutions for universal fibre broadband, for example, or datacentres toserve massive new demand in streaming and e-commerce. Many firms have had to invest heavily to pivot to digital-first business models during the pandemic, but that trend will not slow down after it – and we can help them structure their finances around their new approaches.

• And in logistics and mobility, radical change not just to the volume of material being delivered, but where to and in what kinds of vehicles, requires smart financing solutions. The electric vehicle revolution is just starting; micromobility may transform city life. Fromsupporting M&A deals, to leasing solutions, to underpinning e-commerce transactions, we know we can help.

Our own transitions – to more sustainable energy sources, to greater digitalisation in our own products, to new thinking around mobility – teach us a lot about our clients' challenges and how we can advise, and help finance, those changes. That focus is also going to show our partners – the brokers and introducers – how we can help their clients, too. 

More unified thinking

Our clients and partners are going to see other changes as we emerge from the pandemic. For example, we're going to be leveraging our Northwest European franchise more effectively, looking for ways of working we can apply between different countries; and spreading new products and services that might work for businesses across territories.

That renewed commitment to cross-border thinking is relevant to the recovery from a universal factor such as Covid-19 – and also to make the best of Brexit. The pieces are all in place. There's our commitment to work as a unit across Northwest Europe; our long heritage in the UK, where ABN AMRO has had a presence since 1858; and our clients' need to be able to work across borders – even when new barriers are going up.

That means we can help our Dutch clients, for example, maintain their trade into the UK; and our British clients’ access the European markets they have spent years building up. Again, that's not just about having that cross-border consistency in term of financing arrangements. We can also act as an adviser, drawing on all that experience.

The future starts here

We're keen to build new relationships in target areas such as real estate and financial institutions. We want to grow our existing activities such as commercial finance and leasing, where we're already very strong. We should raise the profile of our clearing operations, which underpin millions of transactions for businesses and financial services organisations. We want to make the best use we can of colleagues and capabilities from across Northwest Europe. And we see ways to be relevant to those major transitional trends that are affecting not just businesses, but society at large. 

Five years from now, we want to look back on our strategy and point to hundreds, perhaps thousands, of businesses we've helped to make vital transitions around digitalisation, sustainable energy and innovation in mobility and logistics. We want our clients to think of us as more than a provider of finance, or of clearing services, or of world-class digitised banking. Our people have the skills and experience to advise them on all aspects of a rapidly changing environment. Those relationships underpin our own future.

We chose the purpose ‘Banking for better, for generations to come’ very deliberately. By living up to our internal values of care, courage and collaboration, we ensure every kind of customer, every colleague and every partner gets our backing to be their best. We want them to know as they tackle the transitions towards a more sustainable future that we're their financial partner – whatever comes their way during the journey.