Baltic large companies: Digitization is pushing to change business models

68% of large companies from Latvia, Lithuania and Estonia that were present in SEB Baltic Business Summit confirmed that digitization is bringing fundamental changes in all business areas and it is causing large companies in Baltics to change their business models.

19% of large companies are convinced that they will have to change their business model within next two years due to digitization. Only 5% of companies think that they will be able to operate as before.

“Financial industry is among those who feel the impact of digitization very strongly. Now we have to compete not only with other banks, but with a much broader range of companies, including start-ups. Fintech companies have proved that they can innovate boldly, react quickly and take risks. Meanwhile, the advantage of banks has always been their stability and capital buffers which enable them to withstand any turmoil. Due to digitization banking will get simpler for clients, but it also must stay safe and reliable”, said President of SEB Group Annika Falkengren in her address to clients.

60% of the representatives from Baltic large companies mentioned innovations as the main challenge for their business. 20% of respondents said that their main challenge was productivity, and another 15% mentioned expansion in new markets.

When asked to describe the impact of digitalization on their organisation in one word, 33% of respondents said “simplicity”, 23% chose “opportunities” while 22% answered “speed”.

SEB bank's Baltic Business Summit took place on April 14 in Tallinn, and it was the fourth consecutive event of this kind. It was attended by representatives from more than 150 largest companies in Latvia, Lithuania and Estonia, to explore the digital industrial revolution and its impact of business environment. Next year the Baltic Business Summit will take place in Riga.