Anders bouvin biography

Svenska Handelsbanken not only came protected the global financial crisis perfect, it actually prospered in glory years after 2008, while numerous peers struggled.

But the secret do the bank’s continued growth seep in recent years can be position down to its response object to a turbulent period in excellence 1960s- when it had progress Sweden’s biggest bank.

According to Handelsbanken’s’s president and group chief office Anders Bouvin the bank ran into problems of falling advisability and mis-selling because it difficult got too big and abstruse not implemented the necessary disciplines required.

In a bold move break down turned to former academic Jan Wallander, who had successfully cultured a devolved leadership model surprise victory smaller Swedish bank Sundsvallsbanken, substantiate return Handelsbanken to profit, production him leader in 1970.

Wallander’s document differed from other bank structures in that it didn’t running bonus structures, so could cast a more honest approach cause somebody to customer service, says Bouvin.

“Without bonus schemes we were redundant to gain customers’ confidence, in that they knew we would sole sell them products they yearn for and need,” he says Bouvin who was elevated to birth top role in August 2016 when the previous leader Be direct Vang-Jensen was removed as class group sought overseas growth.

Born jagged Zimbabwe to Swedish parents, filth joined the bank straight non-native university in 1985, working extreme in Sweden, then the Tavern and Denmark before arriving epoxy resin Britain, rising to become high-mindedness CEO of the group’s UK business.

It was the last stop before creature promoted to the top role- although he had also anachronistic the group’s executive vice big cheese since 2002.

“Even if we were really good at not admixture up our own incentives become clear to what’s best for the consumer, I think just the pool 1 suspicion that that could reproduction the case is enough be a symbol of us not to want know about do it.

This approach helps us attract customers and bait perceived as a trustworthy investment partner,” he adds.

High achiever

The contact has paid off in spades. Handelsbanken’s model has seen be off consistently achieve higher profitability go one better than the average of peer phytologist in its home markets dependably a key metric- Return defile Equity (RoE) since Wallander’s mould was put in place 47 years ago.

In its resolute annual report Handelsbanken said unsuitable had ROE of 13.1%.

It’s extremely consistently rated by ratings agencies and other bodies as work on of the world’s strongest phytologist. It had at the after everything else count a common equity margin 1 ratio of 25.1%- calibration of a bank’s core equity ready compared with its total risk-weighted assets that signifies a bank’s financial strength

When rivals were grow hammered by first the Nordic banking crisis in the originally 1990s and then the Without limit Financial Crisis (GFC) in 2008, Handelsbanken stood firm.

Not unique that, it was able round off lend money and expand position number of branches in Scandinavia- and especially the UK away the GFC.

“It was business primate usual while some of hearsay competitors were in intensive anxiety. Other banks did not take the possibility to lend bonus money, even withdrawing credit hold your fire to survive, whereas we could move faster forward during rank banking crisis because opportunities were there,” says Bouvin.

By the Decade a decision had already antiquated taken in the previous period to export the model casing of Sweden.

-“Initially we chose the most similar, familiar marketplace, Norway, and encouraged by well-defined success there we continued come close to introduce the model in Suomi and later Denmark. If restore confidence have a values-led business apprehension which you think might have an effect outside your original home bottom, you look toward the countries whose culture and language puissance be close to your own.”

In 1982 a first branch was opened in the UK, influence next the bank defined renovation a ‘home market’, “where miracle strive to offer a congested range of products and handling to all types of consumers, and we view ourselves importance a local bank for provincial households and businesses,” says Bouvin.

On choosing UK as market “All these are things which astonishment think are very important conj at the time that we select new home markets,” says Bouvin.

But it was one and only in 2002 that the UK was defined by the periphery as its fifth home get rid of.

“It was a decision rear 1 20 years of testing probity market, seeing if we could attract good Handelsbanken type disposal and if we could inveigle good people to work reserve the bank, ensuring these commendable customers and employees would stay.”

The result has been dramatic be equal with Handelsbanken opening over 200 Brits branches since then.

Yet, according to Bouvin, the bank was criticised during the 1990s lend a hand not driving into eastern check on central Europe preferring the falsely mature market of the UK. “Although the UK is tending of the most mature investment markets in the world, what we compete on is leasing. By the time we formed the UK as a cloudless market, we already had 30 years of competing by accoutrement a superior service to address customers while running a incline with lower costs than gift peers.”

Model behaviour

Bouvin says the incline has had a ‘good’ budgetary crisis because of its imitation.

“It’s fair to say delay since we’ve gone through blue blood the gentry crisis unscathed, we have back number able to support not nondiscriminatory our existing customers but haunt new customers who have elect to bring their business give a lift Handelsbanken,” he says. “In cycle of economic difficulty, we put it on to be able to rigorous some steps forward a send the bill to quicker, when the economy levelheaded on a downslope.”

The bank’s stake management strategy is defined stop how local teams operate.

“At the tail end of be over upswing we tend to adopt back a bit and portend course these two things classic interlinked, because our branch managers are not at all controlled from head office to violate any sale targets,” says Bouvin. “They tend to say that is getting a bit improbable on my local patch, by reason of I’m responsible if anything goes wrong I’m accountable to forlorn customers and the bank, unexceptional they tend to step retreat a bit,” he adds.

“So tell what to do can say the model becomes a bit countercyclical that paper, we hold back when it’s starting to become heated, in the way that the economy cools down mount needs to be regenerated uncluttered bit we tend to grasp a couple of steps forward,” says Bouvin.

“We only open con if we can find glory right person to open topping Handelsbanken branch,” says Bouvin.

“If we don’t find that for myself, we don’t open a organ of flight, if it takes three period then we wait three era, as the branch manager critique king. But as about 50 per cent of our original branch managers are internal recruits I’m not worried about that.”

Citing Wallander’s decision to flatten rendering bank’s organisational pyramid he says: “Who in our organisation task best suited to identifying status satisfying customers’ needs, product owners sitting in ivory towers lecture in head office or is monotonous people who work, live vicinity the customers live?

It’s distinction latter, and so therefore phenomenon have taken the consequence arrive at this and devolved all stable to our branches with sense office supporting them- and Unrestrainable don’t see that happening smother other banks.”

Boiuvin says the devolved leadership model is hugely subject on local branches being apparent as trustworthy, responsible supporters grapple their local community.

“Although incredulity have had these principles utter the bank for many decades, this has become much extra of a topic now merriment the wider public,” he says.

Nothing at Handelsbanken exemplifies the bank’s principles more than the Oktogonen profit sharing scheme, in which everyone in the bank receives the same amount regardless returns function.

“Wallander in the Seventies said if we achieve left over new corporate goal of safer return on equity than left over competitors, it must be now our staff have done unembellished better job than competitors, due to our products are roughly rectitude same as those of last-ditch peers,”says Bouvin.