Denmark
The following data have been gathered by Capgemini and are part of the World Retail Banking Report published annually in March.
Macro economic indicators (2006)
|
GDP at current prices and PPP
|
€ 1652,4 billion
|
|
Inhabitants
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5,4 million
|
|
GDP per head
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€ 306,000
|
|
Economic growth rate
|
3.5%
|
|
Consumer confidence indicator
|
-
|
|
Unemployment rate
|
-
|
|
Consumer Price Index
|
-
|
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Banking staff
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41,294
|
|
Number of branches
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2,000
|
|
Number of ATMs
|
-
|
|
Households savings ratio
|
-1%
|
|
Inflation rate
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1.9%
|
|
Interest rate, consumer credit
|
-
|
|
Interest rate, residential mortgage
|
-
|
|
Interest rate on long term bonds
|
-
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Retail banking environment
• The financial sector sorts under the Ministry of Economic and Business affairs, and the Danish Financial Supervisory Authority undertake drafting of bills and the practical implementation.
• The Danish Financial sector is closely linked to the European sector, and therefore close links and cooperation with the European Banking Federation is also a player
Type and size of players
Net Banking income (in € billion - 1€ = 7,44546 DKK)
Products
% Market Share in household deposits and loans
• The four major banks in Denmark account for over 70% of the retail banking market share.
• The residual market share is divided between 10 major banks as well as a large number (approx. 140) of minor retail banks.
Trends
Regulatory changes
• From July 2007 banks and mortgage institutions are able to provide flexible loans financed by issuing special bonds "SDO loans”.
• From November 2007 securities traders and professional advisors comply with European legal requirements on consumer protection and disclosures (MIFID).
Competition environment
• During the 1990s, the trend in the Danish financial sector was for increased concentration, in which the formation in 1989/90 of Unibank (subsequently part of Nordea) and Danske Bank created two major banking-dominated conglomerates (financial supermarkets)
• The trend for mergers and acquisition continues apace, most recently with Nykredit’s acquisition of Totalkredit. This means larger enterprises with large market shares within their own financial segment, but also more enterprises with broader coverage of the sector’s areas of expertise.
Business model
• Banks are becoming more customer centric in their approach and are aiming to cross sell products and services. Consequently banks are focusing on how to integrate a more products and services both internally and from third party suppliers.
• Dominant banks are aiming to create financial supermarkets that offer relevant products and service, with easy access for their clients around the clock.
Channel strategies
• In 2007 the largest bank introduced a package offering customers free standard banking services and products provided that they use their netbank to handle all day-to-day transactions. Many banks have already followed suit and more are expected to offer similar deals.
• Banks are striving to develop effecient multi channel strategies with seemless integration of offline and online client relations
• The popularity of Dankort, BetalingsService, Call-Centre and not least home-banking means that the number of electronic facilities is growing, while the number of branches and employees is slowly declining.(Source: www.pbs)
• Cost reduction vs revenue enhancement:
• Cost pressure will most likely increase as free standard banking services and products becomes the norm. As a result banks will also be looking for new ways to generate revenue. This could be through cross selling or expanding products portfolio with non financial products and services.
