One of Norway’s leading banks has announced it will withdraw from the personal banking market. Here’s what customers need to know.
Danske Bank has announced a strategic change to its operations in Norway. After conducting a comprehensive review, the bank has decided to focus its efforts on the corporate and large customer segment.
This means the bank has decided to discontinue its investments in the personal banking market. As a result, Danske Bank has initiated a process to sell its personal banking division.
All personal banking customers are affected
All personal customer relationships will be impacted, including customers of Danske Bank’s Private Banking service.
People who hold savings, mortgages and other personal products with Danske Bank will also be impacted.
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However, it’s not yet clear whether corporate customers of Private Banking will be impacted. Whether these are included in the sale is too early to conclude and will be a natural discussion to have with a potential buyer,” said Danske Bank’s statement.
In the event that a buyer is found, the accounts of Danske Bank’s personal customers should be seamlessly transferred.
Customers don’t need to take any action
Erlend Angelfoss, the country manager of Danske Bank Norway, expressed confidence in finding suitable solutions that prioritize the best interests of their retail customers.
He assured customers that they need not take any action during the potential sale process.
This includes people with pre-approved loans and even pending applications. “Nothing changes for you as a customer at this time, and you can expect the same services and products for the foreseeable future,” said the statement.
A new banking strategy
The new strategy, known as “Forward 28,” was unveiled by Carsten Egeriis, Danske Bank's CEO, in Copenhagen. The strategy outlines the bank's vision for the next five years and places a strong emphasis on strengthening its position in the corporate market.
Danske Bank has experienced significant growth and built a solid customer portfolio among Norwegian businesses. However, achieving satisfactory profitability in the personal banking segment has proven challenging, leading to the decision to redirect their focus.
As part of the strategic shift, Danske Bank has commenced the process of exploring a possible sale of the retail branch. Further information regarding this matter will be provided, at the latest, during the announcement of the second quarter 2023 results.
The bank aims to consolidate its role as a leading business bank in Norway and expand its market share in the corporate segment. Danske Bank management, led by Erlend Angelfoss, says it is committed to being an ambitious and proactive player in this sector.