Analysis: "Banks are challenged by digitalisation"

Handelsbanken is known for having many bank offices with great autonomy. In Sweden alone, Handelsbanken has 390 offices. The local branch offices are Handelsbanken's strength - but in a time of great change in the banking world where many are handling their own banking business and where there are less digital challengers in many areas such as pension, savings and consumer loans, the big question is how all banks and especially Handelsbanken will meet that challenge.

The message from Handelsbanken is that you are constantly reviewing your business - and starting up and closing down bank offices as needed. But the bank offices and their relevance will continue to be a major concern for Handelsbanken in a time of great change. In sharp contrast, SEB proudly states in its interim report that 80 percent of banking transactions are now done in the mobile app.

Bank is, as I said, a trust industry and Swedbank is currently struggling in the headwind. The money laundering revelation revealed by SVT's Assignment Review continues to weigh on the new CEO Jens Henriksson. At the moment, Swedbank estimates the cost of the internal investigation at SEK 1 billion per year. There is a lot to go through and for a long time. That cost may well grow.

The bank does not want to speculate on how large the claims may be from the US or other authorities. At the same time, banking is based on trust - and with a sunken reputation, the cost can be even greater in the form of customers leaving. Nordea got a taste of this in connection with the Panama deal.

SEB's business in the Baltic often comes in the cloud from Swedbank but as one of the largest banks there, both New York's financial authority and the Swedish Financial Supervisory Authority have previously initiated investigations. It would be a minor miracle if SEB, with its large presence in the Baltic countries, was not drawn into a money laundering business.