How does the market structure in a banking sector affect bank profitability during a financial crisis?

This thesis studies how profitability in both emerging and advanced economies is affected by market structure in a financial crisis. The country sample from Mirzaei, Moore, & Liu (2013) is used with a similar methodology, with the distinct difference of using all banks rather than simply active banks, to enable a comparison to the time period 1999-2008. A sample of 1328 banks in 40 countries, 17 advanced countries and 23 emerging countries, from 2005-2014 is used with 934 banks from advanced countries and 394 banks from emerging countries. None of the market power hypotheses, the relative-market-power hypothesis nor the structure-conduct-performance hypothesis, are found to be significant for the crisis period 2008-2010. Instead in advanced economies market concentration is a negative determinant of profits in the financial crisis period 2008-2010, indicating that a high market concentration reduces stability and profitability for the banking sector in advanced economies. In contrast, emerging economies find market concentration as a positive determinant of profitability and market share of the bank as negative. The banks in a concentrated market seem to be able to perform better, but the largest banks are more negatively affected by the financial crisis, resulting in lower profitability. The result of both economies for the entire sample period 2005-2014 is equivalent to the market structure-profit relationship found in emerging economies during the financial crisis period. No signs are found of a market structure and profitability relationship after the crisis, which indicate that something other than market structure mainly affects profitability today. A survivorship bias is present when only including active banks, which speaks for the importance of not excluding data in market structure-profit research

Optimizing Digital Transformation : Strategies for Private Banking in the Age of Technology

This thesis delves into the digital transformation of private banking, emphasizing the challenge of balancing technology with the personalized service that high-net-worth clients expect. Employing frameworks like Relationship Marketing, the Technology Acceptance Model, and Customer Experience Management, it examines the integration and impact of digital tools on client relationships and operational efficiency in private banking. The research, informed by interviews with industry professionals, explores the adoption of digital practices, highlighting a trend towards operational efficiency yet revealing a gap in achieving the depth of personalization characteristic of private banking. The study concludes by exploring the future of digitalization in the sector, suggesting a strategic approach where technological advancements complement the foundational elements of private banking. This balanced integration is vital for maintaining the essence of bespoke advice and trust that defines the client-advisor bond in an increasingly digital financial landscape.Denna avhandling fördjupar sig i den digitala omvandlingen av private banking-sektorn, med betoning på utmaningen att balansera teknik med den personliga service som kunder med hög nettoförmögenhet förväntar sig. Genom att använda ramverk som Relationsmarknadsföring, teknikacceptansmodellen och kundupplevelsehantering, undersöks integrationen och effekten av digitala verktyg på kundrelationer och operationell effektivitet inom private banking. Forskningen, som är baserad på intervjuer med anställda inom private banking, undersöker införandet av digitala processer och belyser en trend mot operationell effektivitet, men visar även en brist på att uppnå den djupgående personalisering som är karaktäristisk inom private banking. Studien avslutas med att analysera framtiden för digitalisering inom sektorn, och föreslår en strategisk metod där tekniska framsteg kompletterar de grundläggande elementen i private banking-verksamhet. Denna balanserade integration är avgörande för att bevara essensen av skräddarsydd rådgivning och förtroende som definierar bandet mellan klient och rådgivare i ett alltmer digitalt landskap