The Banks

We visited Nordea and Denmark's National Bank in Copenhagen. These visits were very insightful.

As described earlier in this blog Nordea uses a customer-centric approach which is very sustainable and self-directing business model. Because they are located in Sweden they have a technological advantage and can easily adapt system to serve costumers’ needs. They have been scaling down their brick-and- mortar services and increasing their online and, especially, telephone services. In terms of a customer-centric approach this saves time and money and increase ease-of-use and accessibility. In the long run this will increase customer acquisition, lifetime customer value, and decrease marketing cost by improving word-of-mouth efficiency.
As expected Nordea is growing and has positioned itself to grow rapidly through M & A internationally. Although a Nordic bank (hence the name which stands for Nordic Idea), their business model can be duplicated easily since they are ahead of their times and their value proposition applies to customers across many markets.

Denmark’s National Bank
At Denmark’s National Bank we discussed public policy at the macro level. The bank is trying to affect legislation at an international level to make the banking system more sustainable. Currently, there is little international oversight and standardization across the EU which poses a risk to the banking system, the monetary system, and European competitiveness.
The fact that global legislation has fallen behind technological and scientific advances is true. Even more worry some is that international regulations are even further behind which poses a threat to the global economy and leaves opportunity for large corporations to grow uncontrollably and take advantage of an archaic system.