Swedish retail banking: a competitive update

Abstract

Purpose -The present paper aims to extend an ongoing study of Swedish trade journal's, Privata Affä rer, recognition of the "bank of the year." Design/methodology/approach -The information used in this paper came from Privata Affä rer, which annually recognizes a "best" bank in Sweden. Each issue containing the annual recognition provides the rationale for selecting the specific bank as well as interviews with their CEOs. The data base is robust -every bank in Sweden is surveyed, so results come not from a sample, but a census of banks and banking practice; 17 year's selections are now available. Findings -Results are interpreted in terms of Porter's five forces model and Stabell-Fjeldstaad value model. For eight of the last 11 years, new entrants have dominated the award; in fact, in the last five years one winner was a virtual bank and another was a subsidiary of a retail grocery chain. Research limitations/implications -It is tempting to extend results to the USA and elsewhere in the industrialized world, but of course results relate only to Sweden. Nevertheless, it is suggested that competitors who enter with significantly new services can, and do, become popular leaders in this industry. Practical implications -Sweden tends to be a leader in service theory and development. Consequently, a model exists for developing a competitive edge in other countries. Originality/value -This paper provides an independent confirmation of service models of competition, which generally are lacking in the literature.

Sweden: Bank of the Year Recognition and Performance

“…Previous Studies of BOY Awards Boström and Wilson (2009) reported on a study of BOY winners from 1991, the year of inception, to 2007, the last year for which results were available when the study was made. Their findings were interpreted in terms of Porter's (1979) five forces model and the Stabell-Fjeldstaad (1998) value model.…”

“…It is not just in financial management that Swedish banks have shown leadership. In a study of "best bank" awards in Sweden, Boström and Wilson (2009) inferred that Swedish retail banking may provide a model for operations elsewhere. That is, individual banks have been recognized as innovators in service provision and customer interactions.…”