Handelsbanken

Handelsbanken
Question # 1
What is the purpose?
The ethos of Handelsbanken is that a bank should be
an asset to the community, not a liability.
https://hrmasia.com/case-study-the-immeasurable-currency-of-culture/
Handelsbanken focuses on 6 sustainable development goals:
 Goal 5: Gender equality.
 Goal 8: Decent work and economic growth.
 Goal 9: Industry, innovation and infrastructure.
 Goal 11: Sustainable cities and communities.
 Goal 13: Climate action.
 Goal 16: Peace, justice and strong institutions.
https://www.handelsbanken.com/en/sustainability/sustainable-development-goals
https://www.globalgoals.org/goals/
Question # 2
How is focus on user needs
strengthened?
Tracey Davidson: What is important is that we can give them
[customers] the relationship that they want. So an access to physical
meetings when they want them. And digital - especially now that
customers are much more used to doing this kind of meeting. We can
see more. What we have noticed, though, is that our interactions
customer to colleague are very much more about adding value to
that relationship.
https://www.linkedin.com/posts/frankcalberg_how-do-you-go-about-with-technological-activity-7043956073010987008-9h4m/
People, who work for Handelsbanken, are asked to
exclusively focus on the customer needs.
Whether they visit the bank branches or go online, customers
are always given an individualized service that directly
addresses their individual needs and financial situation.
Enter a postcode on the homepage and be taken to the local

website where customers can meet the management team and
read a message post from the branch manager.
Svenska Handelsbanken’s success is founded on its
“localism” ideology. It is a local relationship bank.
As a consequence of the increasing digitalisation,
Svenska Handelsbanken closes half of its branches in Sweden
– going from 380 branches to 200 branches.
https://pressreader.com/article/281745566810839
When compared to its competitors, Handelsbanken underinvests in
central administration and overinvests in customer service.
https://twitter.com/MicheleZanini/status/1638157577539276800
Question # 3
How is openness strengthened?
Problems are transparent in the open information systems.
https://www.studocu.com/de/document/frankfurt-school-of-finance-management/managing-financial-performance/case-01-svenska-handelsbanken/1786446
In Handelsbanken, branches are compared
with each other.
Developers can use Handelsbanken’s application programming
interfaces (APIs) to create and test apps.
https://developer.handelsbanken.com/
Results of branches are shared openly with everyone – thereby
comparing branches with each other.
The ratio between cost and income (C/I) and customer

satisfaction are emphasized.
https://gup.ub.gu.se/file/132998
Question # 4
What is centralized?
The IT system of Handelsbanken is centralized.
Investment funds of Handelsbanken are produced centrally.
People are rewarded in the form of equal share of profits
when the bank’s return on equity beats their competitors’.
Handelsbanken has an internal accounting system with
a high detail in profit and loss statements as well as account
balances. This makes it possible to very quickly determine if a
branch is wandering off.
Page 20.
Question # 5
How is autonomy strengthened?
There is no central marketing department
in Handelsbanken.
https://www.linkedin.com/posts/frankcalberg_there-is-no-central-marketing-department-activity-7043951973804498944-nqBD/
At Handelsbanken, marketing decisions are made at branch
level, and costs are charged to the branch.
Each branch works independently, for example by
 managing its own websites,
 setting its own pricing on loans and deposits, and
 making its own loan decisions.
http://www.managementexchange.com/blog/bureaucracy%E2%80%99s-3-trillion-price-tag
Handelsbanken has 3 management levels.
12,000 people work for the bank.
http://www.managementexchange.com/blog/bureaucracy%E2%80%99s-3-trillion-price-tag
Handelsbanken pioneered the decentralized
banking method.
Branch managers are granted a high level of autonomy in
making their own decisions on their branch’s budget
and every aspect of the branch’s banking operation.
Question # 6
How are people paid?
Handelsbanken does not
 hand out bonuses,
 create financial incentives to do well or
 set targets that people must meet.
Question # 7
How are leaders selected?
Managers at Handelsbanken are internally selected. 3 reasons:
1. Managers should be well informed about operations.
2. Managers should be able to understand situations that people
experience in their daily contact with customers and with
various procedures.
3. Since managers are important in maintaining the core ideas of
Handelsbanken, they need to internalize these core ideas
before they become managers.
Branch managers are responsible for making sure that
 people have the right conditions / opportunities that
help them to learn / develop / grow.
 People have the right coaches / coaching that help them
to learn / develop / grow.
Question # 8
How is learning strengthened?
People, who work for Handelsbanken, set their own goals.
People, who work for Handelsbanken, are held strictly
accountable for their performance.
To support the decentralized organizational structure,
people coach each other.

Handelsbanken

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Handelsbanken

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Handelsbanken

Enter a postcode on the homepage and be taken to the local

The ratio between cost and income (C/I) and customer

12,000 people work for the bank.

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