Services provided by Latvian banks among best in Europe - Citadele CEO

RIGA - Services provided by Latvian banks are among the best in Europe, Johan Akerblom, Chairman of the Management Board and Chief Executive Officer of Citadele Bank, told LETA.

"The Latvian banking sector is competitive, and the banking services provided to clients in Latvia are some of the best in Europe... I am also a client of a German bank, and compared with the services I, as a client, can receive here, we are far ahead both in terms of service quality and functionality," said Akerblom. 

The Citadele CEO also noted that Sweden has always had most advanced banking services in Europe, but today banking services in Sweden and the Baltic countries are at a similar level.

Akerblum said that competition in the banking sector is strong here. "This is challenging, and the competition is stiff," he said.

Citadele is not competing with the small banks - they have been left outside many have failed in the concept, Akeblum said. 

"In this banking market, if you are not big enough, you don't have the muscle to grow and develop, because it is very expensive for a bank to comply with the regulatory framework, to ensure IT development, the stability of the bank. This is not going to change and that is why it is harder for a smaller bank to compete in the market because they simply cannot afford it," Akerblum said.

He noted that in Estonia the situation is similar, although competition there is even fiercer, while in Lithuania the situation is the same as in Latvia.