Customer focus and scalability are fundamental to our business model
Avanza has an Internet-based business model that is based on the law of large numbers. By charging each customer as little as possible, thereby attracting an ever larger customer base. Strong customer growth, combined with the lowest cost per customer and transaction, high scalability and cost control creates optimal conditions for long-term profit growth.
We are building a company where we want to be customers ourselves. A company that doesn’t see the world as it is, but as it should be. Satisfied customers and a world-class customer experience are the basis of our business and are critical to our growth. Avanza is therefore driven by a constant focus on creating customer value.
Growth in savings capital is what drives income. New savings capital is driven by both new and existing customers who allocate money to our platform. This places great importance on customer satisfaction. Satisfied customers talk about us and recommend us to others, a desirable and cost-effective way to grow.
One way for us to track income is to measure the ratio of income to savings capital. This has declined over the years as a result of market trends, changing customer preferences and negative interest rates, but also because of lower prices, which are an element of our price leader strategy to attract more customers. To deliver shareholder value while at the same time offering low prices and a world-class user experience and customer service, we must be cost effective. Avanza’s business model is therefore based on scalability and the industry’s lowest cost per transaction and customer. Our aim is a cost to savings ratio in line with our competitors’ income/savings capital, making it hard for them to follow our price list.