Leading corporate banks in Denmark 2024, by market penetration

Denmark's corporate banking landscape is dominated by two major players, with Nordea and Danske Bank achieving market penetration rates of 84 percent and 80 percent respectively among large corporations in 2024. This high concentration of market share reflects the broader trend of consolidation in the Danish banking sector, which has seen a significant reduction in the number of domestic banks over the past three decades.

Consolidation and concentration in Danish banking

The number of Danish banks has declined dramatically, falling from 219 in 1991 to just 54 in 2023. This consolidation has led to a highly concentrated market, with the five largest banks controlling over 65 percent of total banking assets in 2023. Despite this concentration, the overall trend shows a slight decrease in market dominance by the top banks since 1999. The reduction in bank numbers has coincided with a decrease in physical branches, with commercial bank branches per 100,000 adults falling by 4.56 percent in 2023 compared to the previous year. 

Digital transformation and foreign competition

As traditional banking infrastructure contracts, Denmark has seen a rapid adoption of digital banking services. By 2024, over 97 percent of internet users in Denmark were conducting their banking online, representing a doubling of the penetration rate since 2005. This shift towards digital banking has occurred alongside an increase in foreign bank presence, with the number of foreign bank branches in Denmark growing from 6 in 1991 to 25 in 2023. These trends suggest a changing competitive landscape for established Danish banks like Nordea and Danske Bank, as they face both technological disruption and increased international competition.