September 11, 2009

Two of the main providers of data services to Denmark's local and regional banks said on Friday that they would merge, removing an obstacle to consolidation among the country's many small banks. IT service centres Bankernes EDB Central (BEC) and SDC Skandinavisk Data Center (SDC), which are owned jointly by local and regional financial institutions, said they would merge to create a new company.

The ties between the financial institutions and their IT service providers have previously proved a deal breaker for mergers in Denmark's fragmented banking industry, where around 150 banks compete in a country of 5.5 million people.Major banks Danske Bank, Nordea, Jyske Bank, Sydbank and unlisted mortgage lender Nykredit hold more than two thirds of the Danish retail banking market and most have their own IT service departments.