Founded in 2001, ICA Bank is mainly active in the Swedish market. The bank offers a complete range of bank services for private individuals, including savings accounts and mutual fund solutions.
ICA Bank has no actual bank branches; instead all services are offered either by the Swedish ICA stores, through a customer service department or via various digital channels (website and apps). Accessibility, simplicity, low fees and easy-to-understand terms are key concepts for ICA Bank. Some of the services are offered through partners. ICA Bank has limited operations in Norway where the bank is responsible for all payment terminals at Rimi and ICA Supermarked stores.
At the end of 2013 ICA Bank had around 3.6 million ICA customers in its customer database, around 612,000 of which were bank customers.
Key figures 2013
|Revenues||SEK 850 million (814)|
excluding non-recurring items:
SEK 201 million (181)
|Business volume||24,772 million (23,272)|
|Number of bank card holders||462,000 (410,000)|
|Average number of employees:||312 (301)|
|Share of Group sales||1%|
There was slightly positive development in the global economy in 2013 and the Swedish economy was stable. Low interest rates resulted in higher indebtedness among Swedish households, mainly linked to an increased demand for mortgages. At the same time, lower interest rates keep interest expense down, which gives households capital to spare for consumption or to save.
The Swedish banking market is still dominated by a few large players. On the deposits side, the four main Swedish banks – Nordea, Swedbank, Handelsbanken and SEB – have a market share of around 65%. In a ten-year perspective both niche banks and foreign bank branches have increased their market share, mainly in the private banking segment. Many niche banks have in common that they originated from other sectors and that they are built on an online mentality with few or no physical branches of their own.
Although in the Swedish banking market in general many consumers are reluctant to switch banks, the emergence of niche banks combined with technical advances has increased mobility and flexibility. Solutions such as digital bank IDs have made it easier for customers to switch banks and to use different banks for different purposes. These days being able to access the bank digitally around the clock, year round, everywhere in the world is something people take for granted.
Prioritised areas for ICA Bank 2014
- grow – both in terms of number of customers and in forging closer relationships with customers
- continued focus on user-friendly services
- adapt to upcoming regulatory changes in the banking market