Financial Technology's effect on the Swedish banking Industry - A study on competition and competitive strategies

Abstract: Titel: Financial Technology's effect on the Swedish banking Industry - A study on competition and competitive strategies Authors: Douglas Wilsby, Industrial Engineering 2018, LTH; Knut Winström, Mechanical Engineering 2018, LTH Supervisor: Ingela Elofsson, Division of Production Management at Faculty of Engineering LTH Background: The rapid advancement of technology has the potential to disrupt established industries, including the banking sector. Companies that fail to adapt to technological shifts risk losing their competitive advantage and face challenges. As the banking industry undergoes digital transformation, banks face the challenge of aligning technology and business models to engage digital customers effectively. Banks must navigate the changing landscape to remain competitive. Objective: Describe, explain and analyse how Swedish banks are affected by the emergence of financial technologies Method: This thesis has an abductive and mixed methods approach and includes archival and documentary research, a case study and a comparative study of a selected group of FinTechs and banks. Limitations: This work will limit to primarily Swedish banks or banks that have large part of their organisation in the Swedish bank market. The financial technologies described in the work will be based on Swedish financial technology companies. This work will also be focused on the bank market from a retail perspective and not from a commercial perspective. Conclusion: Swedish banks are impacted by FinTech, with increased threats of entry, stronger buyer and supplier bargaining power, and heightened rivalry. Banks are generally proactive and have started to collaborate with FinTechs to integrate innovative services and maintain differentiated, but face challenges in the evolving digital landscape.