Business Strategy and Outlook| Niklas Kammer, CFA |
Handelsbanken's predominant feature is a decentralised approach to banking, which gives higher decision-making power to its branches and reduces the need for middle management. This generates stronger customer relationships, allowing for better loan underwriting, which keeps credit costs low. We believe Handelsbanken is one of the best-run banks in Europe. While we acknowledge it has been late to the digital game relative to peers and its business model does not lend itself to a centralised efficiency splurge, we think concerns that Handelsbanken has seen its best days are exaggerated.