It is believed that development of information technology is one of the key driving forces that shape contemporary banking systems. Following up on the transformation on the European banking system resulting from the general application of informational and communication techniques, the authors analysed the banking system in Sweden. The focused on the factors which have determined the development of electronic banking in Sweden, whose general direction is the adoption of tele- and IT solutions in banking activities, and their consequences for the Swedish banking sector.

After the Finnish banking sector, the Swedish one is yet another example of an extensive and comprehensive application of electronic distribution channels for banking services. It has been stimulated by a number of factors, including growing pressure from competitors, well-planned actions taken by the government to foster development of modern communication techniques and the changing needs of bank clients. Social acceptance for new forms of contact with the bank has been primarily reflected in the rapidly growing number of the Internet banking customers and in the use of electronic payment instruments. Progress achieved so far in this field places Swedish banks among the leading European banks which have responded to the challenge of intensive development of electronic banking.

The application of new technologies in the process of providing banking services in Sweden has neither been reflected in the traditional banking infrastructure nor in the economic condition of the banks unambiguously. The development of the banking infrastructure to maximise the advantages of electronic distribution channels and the related costs of the necessary upgrading of information technology in banks level off the benefits arising from the use of these channels. It is believed that the Swedish and Finnish examples, characterised by a very high use of electronic distribution channels, should be in the forefront in setting a direction for the further development of banking sales networks.