New product approval

We are committed to only providing products and services that create value for clients and shareholders, meeting clients’ needs within the global and regional regulatory framework. Our New Product Approval (NPA) and New Transaction Approval (NTA) processes harmonize product and service design, development, testing and certification. NPA is required for entirely new products, businesses and markets, and also covers changes to existing business.

Approved NPAs split by division

Our NPA/NTA framework aims for proper understanding and application of policies, procedures and controls, with a focus on oversight and risk assessment. Clearly defined roles and responsibilities, together with standards to measure adherence, training and a Red Flag process to take corrective action, support consistent quality control. The framework emphasizes a collaborative review and approval process in order to identify the correct technology, accounting and regulatory standards, legal, compliance and control framework. All product developments, including changes to existing products, are reviewed by key control functions such as Compliance and Anti-Money Laundering (AML). The NPA risk management team provides an independent and consistent view across all NPAs/NTAs in certain areas. Where we have established regional and divisional NPA committees, they must review material developments, including new risk factors or businesses. Any features raising concern, such as potential reputational impact on the bank, are escalated to regional or Group Reputational Risk Committees. In 2015, we will also integrate environmental and social criteria into the approval process. The framework is the responsibility of the NPA committee, which reports to the Risk Executive Committee.

In 2014, numerous product and service developments were reviewed. The NPA unit expanded and additional resources will be added in 2015. This expansion allowed us to publish new policies and to revise business control standards to demonstrate greater consistency and enhance our automated platform.

Implementing systematic and periodic review

We launched the Product Lifecycle initiative in 2014 to implement a systematic and periodic review of all products. This is a group-wide initiative involving the four core business and the Non-Core Operations Unit as well as infrastructure functions. The framework for Product Lifecycle management includes: minimum criteria to monitor and remove products throughout the lifecycle; requirements for systematic reconciliation of approved products to actual business activity; documentation; and Roles and accountabilities of all functions.