Authors: Veronica Fellman
The banking market in Finland in the beginning of the 21st century reflects different phases occurred especially as from the 1980’s. The main factors are the adaptation to the deregulation from the Finnish Central Bank, the globalisation and the harder competition on the banking market. During the depression in the beginning of the 90’s banks faced loan losses because of companies? bankruptcies and bad economic states. The decreased security values due to the general value loss on the stock exchange and the real estate resulted in an overall bad customer stock of companies, where the companies faced difficulties as well as their suppliers. There was an overall chain of reaction. The study will focus on the customer profitability of medium-sized industrial companies during the 1990’s in Finland and discuss the medium-sized company sector’s banking behaviour. The aim is to analyse the banking relationship and profitability between the financial services company Nordea and its medium-sized industrial company customers. The profitability factors enhancing the companies to achieve a long-term banking relationship and the advantages in the bank relationship between the bank and the company will be discussed. The study will have an economic as well as an interactive aspect to enlighten the relationship: what factors will in the long run promote or destroy a banking relationship between companies and banks?The aim is to analyse the factors behind the profitability and the success or failure during the 90’s and make a model of how the Finnish banks? company customers have behaved during the 90’s. The aim is also to find out how companies can be more profitable and analyse the factors behind profitability through a model for Customer Relationship Profitability Outcome (a CRPO model). The material for the study is included in the financial services company Nordea’s customer database. The names of the companies will be changed in order to keep the bank secrecy. The material will be handled in a quantitative as well as a qualitative way, so the quantitative survey will enable a view of the trend in the industry, and the additional qualitative survey as interviews for charting the long-term, or short-term, factors for banking relationship.
Journal: ( – )
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Publish Year: 2003
Conference: Lugano, Switzerland (2003)