Swedish insurance company Skandia has entered a partnership with national co-operative retail chain KF and telecomms operator Telia to launch a new online bank for the Nordic region. The companies anticipate scooping over one million account holding customers by 2005.
The new Internet bank, Coop Bank, is scheduled to be launched at the beginning of 2002, and will initially be promoted to the 3.5 million holders of KF's MedMera customer card.
In addition to online access, customers will be able to make deposits and withdrawals at the co-operative group’s 1300 supermarkets and hypermarkets - as well as automatic teller machines. The bank will also offer services via fixed-line and mobile phone.
Lars-Eric Petersson, president and CEO, Skandia, says: "With a high level of accessibility, easy-to-use services, and low costs, Coop Bank will be an extraordinary banking alternative."
KF ekonomisk förening, the Swedish Co-operative Union, will own 45 per cent of the new bank, Skandia Liv 35 per cent, and Telia AB 20 per cent. The three partners are to invest a total of Skr700 million in the venture.
"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," says Marianne Nivert, president and CEO, Telia.
Elisabeth Ström, executive vice president of KF, has been appointed chairman of the board. Thomas Idermark, currently in charge of developing financial services at KF, is to be the bank’s president.