Bankfusion: Customers should be on their toes.

Bank Fusion: Customers Should Stay Alert

The chief economist at the Consumer Council Think urges customers to keep an eye on potential fee increases.

Nykredit has offered to buy all the shares in Spar Nord for a total of 24.7 billion Danish crowns. (© Spar Nord)

By Christine Nørgaard ( [email protected] ) 25 minutes ago

If the leadership at Nykredit and Spar Nord have their way, the two financial institutions will merge to become Denmark's third largest bank.

And it's important for customers to stay informed about any changes in fees and terms, says chief economist at the Consumer Council Think, Morten Bruun Pedersen.

- When larger banks enter the market, competition weakens, so even if the bank may have cost savings, it's not guaranteed that customers will benefit.

Read also: Nykredit Wants to Buy Spar Nord in a Massive Billion-Dollar Deal: Will It Become Denmark's Third Largest Bank ( https://www.dr.dk/latest/nykredit-wants-to-buy-spar-nord )

Nykredit has offered to buy Spar Nord Bank for a total of 24.7 billion Danish crowns. The intention is, according to the company, to create a powerful and cooperatively-owned alternative to the largest publicly-traded banks in Denmark.

The stronger banks are in relation to customers, the higher prices they charge, says chief economist Morten Bruun Pedersen from the Consumer Council Think. (© Consumer Council TÆNK)

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Negotiate with Your Bank

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At the Consumer Council Think, chief economist Morten Bruun Pedersen encourages customers to contribute to competition by negotiating prices and potentially switching banks.

Banks take the price they can get away with, he says.

- You won't necessarily get anything out of this merger as a customer unless you're vigilant and ensure that you've negotiated some good prices, says Morten Bruun Pedersen.

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Spar Nord Rejects Higher Fees

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Spar Nord's board chairman Kjeld Johannesen, however, denies that the merger will result in higher fees. According to him, there is still strong competition and a reason to be customer-friendly.

- The idea is, in fact, to create a common engine that becomes cheaper to operate, so we can offer customers even better products and stand stronger in competition.

Spar Nord currently has 60 branches throughout the country and over 400,000 customers.

If the deal is approved, Nykredit and Spar Nord will become one bank, but on the branches, there will still be different names and logos.

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