FUNCTIONAL DIFFERENCES IN NORDIC BANKS INTERNATIONAL BRANCHING MODELS

Management styles of banks has been comprehensively studied, but room for further study regarding management styles and internationalization strategies of branch networks exists. The prevailing business scenery emphasizes the need for banks to become acquainted with the best strategies concerning their respective branch networks to maintain and maximize profitability. From the perspective of banks, customer acquisition as well as retention were highlighted as crucial in terms of operations of the given bank. The core objective of this master's thesis was to investigate the type of international operational models different Nordic banks have chosen, as well as identify the main strengths and weaknesses associated with each model. The models used by the banks were identified by an empirical analysis of five major Nordic banks, and the empirical data was analyzed and compared to the theoretical framework. The empirical data was collected from banks originating from Denmark, Norway and Sweden. This target group was selected because previous research in the Nordic regions banks internationalization processes is limited, or no longer applicable. The objectives of this study also included studying the opportunities and potential threats of each of strategical approach. The empirical section of this Master's thesis was studied with a qualitative data collection method, due to the data collection method which included interviews. Results of the study indicate a decreased number of bank branches used by Nordic countries, partly due to the introduction of advanced internet technology and focus on large corporate customers. The underlying reasons for these findings pointed towards profit maximization which can also be highlighted to be a primary motive or all studied banks. From the perspective of the Nordic banks, differentiation and focus on core competences were found to be key elements in dictating the banks respective international operational model. From the perspective of the customer factors such as trust, satisfaction, functional service quality, technical service quality and commitment were seen as key factors of importance, ultimately leading to the chosen bank.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format