Internationalization of Nordic banks: two case studies

Abstract: Internationalization poses great challenges for banks: competing with each
other in different regions and offering competitive services. The purpose of
this thesis is to gain a deeper understanding of Nordic banks’
internationalization strategies. Three research questions were posed: How can
the motives for internationalization of banks be described, how can the
international market entry strategies available for banks be described and
how can factors influencing choice of foreign markets for banks be described.
Qualitative case studies of Kaupthing Bank of Iceland and DnB NOR of Norway
were made. Findings showed that saturated home market and following home
country customers abroad are major motives for Nordic banks’
internationalization. Market entry strategies, on the other hand, differ
between Nordic banks and have to do with their corporate strategies. Finally,
Sweden, mainly due to its large financial market, is the main foreign market
for Nordic banks.