Handelsbanken Goes Digital in Sweden; A Global Trend, However, It is Uncertain How Clients Will React

Svenska Handelsbanken AB (Handelsbanken) is aiming to become a more digitalised bank, and to that end, announced on Wednesday, 16 September 2020, its plan to restructure its Swedish operations. We see the announced cuts as significant. There has been a rapid growth of digital finance, particularly in Sweden. While it makes sense to increase digital capabilities in this environment, we also think it is unclear how Handelsbanken's customers might react given the magnitude of the reduction in branches and the competitive edge it derived from its branch network.