Solidarity contributions, the requirement to ensure the presence of banks in regions, and other initiatives created exclusively in Latvia for banking regulation as a whole create an additional burden that lacks economic justification and is not based on objective data. This was stated in an interview with the LETA agency by the chairman of the board of "Swedbank" Lauris Mencis.
“But the law must be followed, and the conditions must be met, so we are investing resources and thinking about how to organize this regional presence. Perhaps alternative solutions would provide much more benefit to both clients and banks,” said Mencis.
He explained that "Swedbank" opened a customer service point in Madona as part of a pilot project, operating on Fridays. Project data shows that 75% of visitors could resolve their issues remotely, and some of the requested services are not even within the bank's authority — for example, the issuance of authentication means.
Mencis noted that clients mainly come due to uncertainty about trying to do something on their own, so the consultant supports them and gives advice to help overcome fear and act independently in the future.
“We very much hope that the collected information will be heard by the regulator in the future, so that decisions are made based on facts, not emotions or assumptions,” said the head of "Swedbank".
He pointed out that, in a sense, it would even be positive if demand increased when people see that bank employees are available in person.
“This time it wouldn’t be so bad to admit that we have lived in false representations. Unfortunately, the data related to demographics and economic activity, as well as the previous experience of banks, make one think otherwise,” noted Mencis, adding that a state approach is necessary for regional development — infrastructure, people, jobs, services.
According to Mencis, the fact that a client can receive a banking service closer to their place of residence is one thing, but it does not mean that export-capable enterprises will suddenly appear in these places or that opening a branch will itself give a boost to significant economic activity. “We are skeptical about this. And if the opposite is proven — it will be, so to speak, a positive problem,” he said.
He emphasized that the essence of the question lies in overall feasibility.
“If the argument is that such customer service points twice a week will trigger explosive economic growth in the regions, then that is simply living in illusions,” stated Mencis, emphasizing that banks are very attuned to the pulse of the real economy and it would be beneficial to listen more to their opinions in order to jointly develop solutions that promote the growth of Latvia.
He also explained that for entrepreneurs, clear tax policy and understandable government decisions — in demographics, energy, labor issues, infrastructure, education — are more important.
“I would like common resources to be directed towards issues and topics with much greater overall returns,” added the bank's head.
By assets, "Swedbank" is the largest bank in Latvia.
