Reputation Study in the Banking Sector: Avanza Is Still Number One, but the Challengers Are Closing In
In a 2020 reputation study by Reputation and Trust Analytics, Avanza’s reputation was by far the strongest in the banking sector. At that time, it reached a score of 4.09 on a five-point scale, which has now dropped to 3.87 in 2024. Nordnet and SBAB are the industry’s leading challengers, both with reputation scores of 3.74, while Nordea has made the most progress.
Overall, the range of perceptions regarding professional reputation and credibility has narrowed for players in the banking sector. In 2020, Nordea scored 2.91 on a five-point scale, while Avanza topped the list with 4.09.
In the 2024 survey, Avanza’s reputation has fallen back to 3.87. Swedbank currently has the lowest reputation in the industry, at 2.95. The industry spread was previously 1.18 units, but has now narrowed to 0.92.
Alexander Widen, a consultant at Reputation and Trust Analytics, notes that the narrowing spread represents a significant change in the industry.
— Competition in the banking sector has intensified from a trust perspective. The general public perceives Avanza as having the strongest reputation, but Nordnet and SBAB are close behind. It is interesting that the banks as a whole are now more closely matched, which could lead to fiercer competition for market share, comments Alexander Widen.
The big winner in the survey is Nordea, which has made the most progress in terms of its reputation. The bank has moved up from last place to a more acceptable level—from 2.91 to 3.19.
Reputation Development Among Challengers
Alongside Nordnet, SBAB is Avanza’s main challenger as the most respected player in the banking sector.
— Fundamentally, I believe our strong reputation stems from the fact that we have a very good and strong corporate culture. We offer competitive mortgages, popular savings products, and provide thoughtful advice to our customers. We’re also quite proactive in our marketing and successful in the news media, which I believe has contributed to this excellent result,” saysMalou Sjörin, Head of Sustainability, Marketing, and Communications at SBAB.
Turbulence at the top and bottom
Avanza’s decline at the top could be partly explained by the media turmoil that arose in connection with the CEO changes this winter. Amid the turmoil, Knut Frängsmyrwas forced to step down as CEO after just one week in the role, sparking media speculation about generous severance packages and hidden compensation schemes.
At the bottom of the survey is Swedbank, whose reputation has been damaged by the media storm surrounding the fraud case against former CEO Birgitte Bonnesen. The data for the survey was collected before the guilty verdict was handed down, which suggests that the bank will continue to face challenges regarding its reputation and trust in the future.
Source: Reputation and Trust Analytics 2024
Socioeconomic development affects the reputation of individual actors
The evolution of banking institutions’ reputations is also partly driven by macroeconomic factors beyond the scope of strategic management at the organizational level.
— The economic turbulence of recent years is causing the market to tighten, not least in a confidence-driven industry such as the banking sector. Overall industry confidence is tending to decline in the wake of falling purchasing power among Swedish households, while banks are reported to be maintaining high margins. “This ultimately has an impact on the attitudes and purchasing decisions of the Swedish public,” comments Alexander Widén.
— We also know that the Swedish public is very sensitive to shifts in reputation. Swedish consumers are more likely to support organizations with a high reputation than consumers in comparable countries. Similarly, Swedish consumers are more likely to penalize companies with a poor reputation. This is reflected in the Swedish banking sector, where reputation and trust are key factors in driving competitiveness, comments Alexander Widén.
Here's how we conducted the study
The research objective of the study on the banking sector in Sweden was to examine the public’s perception of the reputation of selected financial institutions operating in Sweden. Data collection was conducted via an online survey between May 10, 2024, and June 3, 2024.
The organizations were evaluated using the Reputation&Trust analysis model, which assesses an organization’s reputation across eight dimensions. The reputation dimensions are governance, financial performance, innovation, dialogue, products & services, workplace, and social responsibility.
A total of 2,675 Swedes participated in the survey. The survey sample consisted of Swedes between the ages of 15 and 65 from across the country. The sample was weighted by gender, age, and residential area to represent the entire population.
For more information, please contact:
Alexander Widen, Senior Advisor, Reputation and Trust Analytics AB
+46 70 471 2332
alexander.widen@reputationandtrust.com
Riku Ruokolahti, Development Director, Reputation and Trust Analytics AB
+358 400 512 200
riku.ruokolahti@reputationandtrust.com
More information:
Reputation and Trust Analytics helps companies and organizations measure, understand, and manage their reputation. Through our evidence-based and data-driven approach, we can demonstrate the impact that reputation has on stakeholder trust and behavior, and help organizations steer their operations in a more competitive and sustainable direction based on these insights.
Reputation & Trust Analytics is a subsidiary of the Finnish company T-Media, which introduced the survey model in 2013. Since then, it has been used more than 2,000 times worldwide and is utilized by all universities in Finland, 22 of Finland’s 25 largest companies, and many government organizations. In Sweden, Reputation & Trust Analytics opened its local office in January 2024.
