White paper

Impact of open banking in Scandinavia

Digitalisation has already in a number of ways improved customer experience and intensified competition in the Scandinavian banking markets. However, so far, digitisation has left the structures of the banking sector somewhat unchanged. This might be about to change as PSD2 and digitisation could open up the value chain in financial services – a process denoted “open banking”.

In this “new” value chain of the banking sector, customers will to a larger degree pick the best financial services from different banks through “customer platforms”. Consequently, competition could move from being at an institutional level – i.e. the “choice of bank” – to being at the product level. This could make the “production” of financial services and customer contact become more disentangled.

We see the Scandinavian banking markets as being very well-positioned in meeting the increased competition. Among factors due to an already high degree of digitization and generally low operational/funding costs. Thus, we see the changing structures of finance as a great window of opportunity for those Scandinavian banks who pursue the new opportunities.

This white paper is prepared in collaboration with Norfico

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