The evolution of market orientation in Finnish retail banking – from regulation to value creation

AbstractIn this paper, our aim is to study the evolution of the market orientation in Finnish retail banking from the time of regulation to the present day. That involves examining how Finnish retail banking has been shaped by regulation, deregulation, increasing competition and changing customer expectations in different periods. We approach this aim by answering the following key questions (1) What different eras are identifiable based on our analysis of market orientation development? (2) What have been the drivers or inhibitors of the market orientation evolution process in these different eras? and finally, (3) how has Finnish retail banking market orientation changed its nature during the different phases identified? Our historical evidence is based on a range of documentation focusing on Finnish retail banking. We also conducted 29 interviews with Finnish top bank management actively involved in banking business during various eras.