Regulations’ Effects on New Product Development in The Financial Services Industry: A Case Study of Products Launched in Nykredit A/S from 2008-2012

Katrine Fie Hastrup & Stine Rasmussen

Student thesis: Master thesis


This thesis studies the gap between two key market dynamics influencing The Financial Services Industry in Denmark. Firstly, the industry has experienced a 206% increase in the number of external regulations since The Financial Crisis in 2008. Secondly, NPD is a key component when addressing the contemporary economy. However, as no other studies address this gap this thesis studies how the increased level of externally imposed regulations’ effects NPD in The Financial Services Industry, through a case study of 100 launched products in Nykredit A/S. The case study includes five characteristics which are used to categorize the sample of 100 launched products in Nykredit A/S: Motivation for the NPD Project, complexity of the NPD Project, flexibility of the regulations influencing the NPD Project, degree of innovativeness of the product, and outcome of the product after launch. As a result of the case study, varied effects from the increased level of regulations are observed on all five characteristics. Addressing why these effects have occurred, from a managerial point of view, it is found that the increasing level of regulations cannot explain why all the effects have occurred. From a managerial point of view, the varied effects observed may also be explained by other factors such a changing internal focus, a changing organizational focus, and changing market dynamics. However, looking at these findings in a greater context all the effects on the launched products can to some extent be explained by the increasing level of regulations, as these are an inherent part of the environment of which Nykredit is part of. Thus, all the five characteristics are connected and a NPD project, and the subsequent launched product is therefore continuously affected by the increasing level of regulations. These findings contribute to managerial practices in three ways: 1) Clarify how regulations affect NPD in The Financial Services Industry. 2) Develop three general types of NPD projects which describe what managers most frequently can expect within each type of motivation for the NPD project. 3) Develop four guidelines describing how to achieve, obtain, or avoid a specific outcome of the product after launch. As a closing remark, this thesis takes the first humble steps towards addressing and uncovering an unknown area being the gap between external regulations and NPD in The Financial Services Industry. However, as no other existing studies address this exact relationship, more research is needed to further develop the knowledge and fill in the gap in this area.

EducationsMSc in Management of Innovation and Business Development, (Graduate Programme) Final Thesis
Publication date2013
Number of pages118