The internationalisation of banks : A comparative case study

This research paper studies the internationalisation process of a small to medium sized bank in comparison to a global systemically important bank (G-SIB) between 1970 and 2007. The study includes the motive of internationalisation, the chosen market entry mode, the development of market commitment and the development of the network position of the studied case companies. In order to get a deep understanding of the internationalisation process of banks we applied a qualitative research method. To enable the aimed comparison of two different banks a multiple case design, involving Deutsche Bank AG and DNB ASA, was applied. The empirical results demonstrate that the main motive for internationalisation for both case companies was to follow their clients. Additionally, both case companies entered retail banking in different markets through acquisitions, because retail banking requires an extensive branch network and access to a wide customer base. The results also show that the G-SIB displays a higher degree of market commitment in comparison to the small to medium sized bank. In contrast to the G-SIB the small to medium sized bank developed knowledge internally and was not as active in acquisitions.