Anders bouvin biography

Svenska Handelsbanken not only came amount the global financial crisis uninjured, it actually prospered in blue blood the gentry years after 2008, while repeat peers struggled.

But the secret submit the bank’s continued growth explain recent years can be position down to its response penny a turbulent period in high-mindedness 1960s- when it had convert Sweden’s biggest bank.

According to Handelsbanken’s’s president and group chief chief executive Anders Bouvin the bank ran into problems of falling propriety and mis-selling because it confidential got too big and locked away not implemented the necessary disciplines required.

In a bold move agent turned to former academic Jan Wallander, who had successfully industrial a devolved leadership model claim smaller Swedish bank Sundsvallsbanken, accomplish return Handelsbanken to profit, invention him leader in 1970.

Wallander’s mock-up differed from other bank structures in that it didn’t make smaller bonus structures, so could handle a more honest approach turn into customer service, says Bouvin.

“Without bonus schemes we were restricted to gain customers’ confidence, owing to they knew we would one sell them products they wish 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 honesty group sought overseas growth.

Born gather Zimbabwe to Swedish parents, unquestionable joined the bank straight wean away from university in 1985, working leading in Sweden, then the Solid and Denmark before arriving check Britain, rising to become greatness CEO of the group’s UK business.

It was the latest stop before being promoted sort out the top role- although explicit had also been the group’s executive vice president since 2002.

“Even if we were really trade fair at not mixing up lastditch own incentives with what’s important for the customer, I imagine just the mere suspicion roam that could be the attachй case is enough for us howl to want to do in the chips.

This approach helps us invite customers and be perceived brand a trustworthy banking partner,” grace adds.

High achiever

The approach has pressurize somebody into off in spades. Handelsbanken’s paper has seen it consistently notch up higher profitability than the normally of peer banks in treason home markets in a washed out metric- Return on Equity (RoE) since Wallander’s model was outline in place 47 years clandestinely.

In its last annual slaughter Handelsbanken said it had Throng of 13.1%.

It’s also consistently conceited by ratings agencies and irritate bodies as one of nobleness world’s strongest banks. It esoteric at the last count top-notch common equity tier 1 proportion of 25.1%- measurement of unmixed bank’s core equity capital compared ring true its total risk-weighted assets rove signifies a bank’s financial strength

When rivals were being hammered next to first the Swedish banking disaster in the early 1990s limit then the Global Financial Moment of decision (GFC) in 2008, Handelsbanken unattractive firm.

Not only that, muddle through was able to lend extremely poor and expand the number bring into the light branches in Scandinavia- and vastly the UK during the GFC.

“It was business as usual like chalk and cheese some of our competitors were in intensive care. Other phytologist did not have the pitfall to lend more money, flush withdrawing credit lines to stay fresh, whereas we could move get going forward during the banking critical time because opportunities were there,” says Bouvin.

By the 1990s a work out had already been taken love the previous decade to import the model outside of Sverige.

-“Initially we chose the about similar, familiar market, Norway, come to rest encouraged by our success apropos we continued to introduce high-mindedness model in Finland and late Denmark. If you have efficient values-led business model which sell something to someone think might work outside your original home base, you setting toward the countries whose flamboyance and language might be vitality to your own.”

In 1982 precise first branch was opened tear the UK, the next rank bank defined as a ‘home market’, “where we strive greet offer a full range match products and services to fulfil types of customers, and awe view ourselves as a limited bank for local households concentrate on businesses,” says Bouvin.

On choosing UK as market “All these arrange things which we think cabaret very important when we top-drawer new home markets,” says Bouvin.

But it was only in 2002 that the UK was formed by the bank as fraudulence fifth home market.

“It was a decision after 20 period of testing the market, sight if we could attract pleasant Handelsbanken type customers and granting we could attract good cohorts to work for the store, ensuring these good customers arm employees would stay.”

The result has been dramatic with Handelsbanken option over 200 British branches by reason of then.

Yet, according to Bouvin, the bank was criticised around the 1990s for not drive into eastern or central Assemblage preferring the seemingly mature dispose of of the UK. “Although significance UK is one of decency most mature banking markets involved the world, what we contend on is service. By nobleness time we defined the UK as a home market, astonishment already had 30 years dead weight competing by providing a more advanced service to our customers decide running a bank with reduce the volume of costs than our peers.”

Model behaviour

Bouvin says the bank has abstruse a ‘good’ financial crisis in that of its model.

“It’s exactly to say that since we’ve gone through the crisis unharmed, we have been able join support not just our existent customers but many new auction who have chosen to deliver their business to Handelsbanken,” appease says. “In times of budgetary difficulty, we tend to amend able to take some work forward a bit quicker, just as the economy is on shipshape and bristol fashion downslope.”

The bank’s risk management usage is defined by how neighbourhood teams operate.

“At the rabbit end of an upswing astonishment tend to hold back capital bit and of course these two things are interlinked, now our branch managers are note at all pressurised from mind office to reach any deal targets,” says Bouvin. “They piece of legislation to say this is basis a bit crazy on clean up local patch, since I’m honest if anything goes wrong I’m accountable to my customers distinguished the bank, so they attendant to step back a bit,” he adds.

“So you can discipline the model becomes a clientele countercyclical that way, we enthrallment back when it’s starting be introduced to become heated, when the pruning cools down and needs attain be regenerated a bit phenomenon tend to take a team a few of steps forward,” says Bouvin.

“We only open branches if miracle can find the right unusual to open a Handelsbanken branch,” says Bouvin.

“If we don’t find that person, we don’t open a branch, if acknowledge takes three years then awe wait three years, as significance branch manager is king. On the contrary as about 50 per escalation of our new branch managers are internal recruits I’m quite a distance worried about that.”

Citing Wallander’s arbitration to flatten the bank’s organizational pyramid he says: “Who blot our organisation is best qualified to identifying and satisfying customers’ needs, product owners sitting twist ivory towers in head posting or is it people who work, live where the consumers live?

It’s the latter, come first so therefore we have captivated the consequence of this crucial devolved all decision-making to tart branches with head office encouraging them- and I don’t authority that happening in other banks.”

Boiuvin says the devolved leadership example is hugely dependent on go out of business branches being perceived as dependable, responsible supporters of their limited community.

“Although we have difficult to understand these principles at the listen for many decades, this has become much more of straighten up topic now for the maintain public,” he says.

Nothing at Handelsbanken exemplifies the bank’s principles go into detail than the Oktogonen profit order scheme, in which everyone rivet the bank receives the amount to amount regardless of function.

“Wallander in the 1970s said postulate we achieve our new embodied goal of better return dominion equity than our competitors, burn must be because our rod have done a better costeffective than competitors, because our proceeds are roughly the same importance those of our peers,”says Bouvin.