The business model of savings banks in Scandinavia

Abstract

The segment of savings banks occupies a prominent place in the banking systems of European countries. Savings banks have survived systemic crises, institutional transformations, and consolidation, maintaining high depositor confidence thanks to a restrained appetite for risks. The relevance of researching the experience of savings banks in Scandinavia is due to a long history, a special type of corporate structure and business model in attracting and deploying resources. Although the activity of foreign savings banks in the modern market environment remains outside the attention of domestic researchers, in Ukraine household savings form the basis of the resource base of many banks, which requires a special approach of the regulator. According to the results of the study, it was found that savings banks achieve the effect of economies of scale due to the centralization of certain functions. At the same time, they are moving away from the historical business model, which is embodied in a change in legal status, an increasing focus on profit, the development of the corporate segment, digitization of operations, access to other local markets, conducting international operations, participation in the capital of foreign financial institutions, mergers and acquisitions, which lead to an increase in the scale of business. The emergence and development of savings banks in Scandinavia is a reaction to the growth of citizens\\\\\\\' well-being (as an offer of savings) and at the same time - a desire to improve it. The security of the banks\\\\\\\' business was certainly helped by a conservative attitude towards accepting credit risk. An important factor of trust in banks was and remains a low corruption risk in the Scandinavian countries. It was concluded that the creation of associations of savings banks and joint platforms deserves attention for use in Ukraine, as it ensures business efficiency even for small institutions.