STOCKHOLM (Direkt) Skandia, Telia and KF are launchinga new bank, Coop Bank, that will offer financial services with competitive terms, according to a joint press release Monday.
The bank`s main channel of distribution will be the Internet, although deposits and withdrawals can be done in thevarious supermarkets and hypermarkets belonging to theco-operative group.
KF ekonomisk forening, the Swedish Co-operative Union,will own 45% of the new bank, Skandia Liv 35%, and Telia AB 20%. The three partners will invest a total of 700 millionkronor.
The goal is for Coop Bank to quickly become one of Sweden`s leading banks, the companies said. The owners provide the bank with a strong startingpoint. KF`s MedMera customer card will immediately introducethe bank to some 3.5 million potential customers. Theco-operative group`s geographic reach will make the bank accessible to customers throughout Sweden. Skandia adds banking expertise and a modern IT infrastructure while Telia ensures Coop Bank a position as a leading financial services provider via existing and future telecom services.
Roland Svensson, president and CEO of KF, said they estimate Coop Bank will have over one million account holding customers by 2005, at the latest.
"With a high level of accessibility, easy-to-useservices, and low costs, Coop Bank will be an extraordinary banking alternative. KF`s solid standing with more than half of Sweden`s households creates a firm business relationship for the future. Skandia Group`s participation in Coop Bank isyet another example of our successful `Specialists inCooperation` business concept," says Skandia President and CEO Lars-Eric Petersson.
"Financial services are becoming increasingly telecom-based, and we believe that retail transactions will soon be done via mobile phone. Telia will therefore play an important role at Coop Bank," said Marianne Nivert, Presidentand CEO of Telia. "This collaboration provides us with an excellent opportunity to further develop services directly targeting an exciting market."