Pest Analysis on Nordea Political 1. Legislation/law for information systems 2. Effectiveness of law v internet 3. Monopoly legislation 4. Trading from investors Economical 1. Economy of information systems in Scandinavia 2. Economical trends 3. Trade and industry 4. Competition of cost outside Europe Social 1. Wide demographic 2. Applying decent pricing to customer’s needs 3. Innovative idea to suite customer trends 4. Security Technical 1. Using different sites to their advantage 2. Challenges of integrated systems 3. Innovative ideas 4. Competitors Political – ‘Political systems can exert significant pressure on the development and use of information systems in organisations’ (Beynon-Davies, 2004). This normally The introduction of the Internet has encouraged growth in areas such as commerce and telecommunications however it has also enabled a new type of crime: computer crime. (Chaffey, 2002) The infrastructure of the Internet and anonymity of its users make it ideal for offences such as money laundering, hijacking system accounts, piracy and computer viruses (Adam, Dogramaci, Gangopadhyay and Yesha, 1999, p.156) It is therefore important for Nordea to ensure they uphold their security regulations at a high level. Currently they use e-trust “in the security and reliability of electronic banking channels” (Jelassi & Enders, 2008).
Technical – Nordea have invested very largely in technological capabilities. E-banking ‘being their main operations has been strongly influenced by the original individual banks which all had different technology platforms’ (Jelassi & Enders, 2008). After the merge of all four regions, Nordea was faced with a very complex IT system. This resulted in them having to install special software and get smart-card readers before getting access to go online. Nordea has a large portfolio of e-business, lots of customers, and ongoing idea. However when a ‘business idea is really successful, then it will not be long before other entrepreneurs will be looking for ways of copying the idea.’ (Hughes, 2008). This was seen with a number of Swedish banks that competed head-on with Nordea. They adopted their own versions of e-banking and gained 1.3
