Hemnet: Booli’s Differentiation & Incentives

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For now, let's focus on Booli and the bank. What was the reasoning behind SBAB's decision regarding Booli?

Booli has always been very strong in statistics and databases. They could gather and analyze information that Hemnet couldn't, due to ongoing conflicts between brokers and Hemnet about what the website should display versus what brokers should show. Booli didn't concern itself with that, which is why they built a robust database with comprehensive statistics about sales, pricing, and the number of days on the website, among other things. The bank was interested in this information to provide better service to their clients and generate more leads for future loans. Essentially, they wanted to be more competitive in the housing market.

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What is Booli's current position within the bank? Initially, with a temporary leader, there seemed to be a commitment to make it a market leader or invest in Booli. Now that he's no longer there, and it's likely run more by bankers, what is the bank's current stance on Booli?

They still have an ambition to get more information from Booli. However, I don't think they aim to be the market leader because they know they will never surpass Hemnet in Sweden. Hemnet is too strong. They don't have a monopoly, but it's an extremely strong brand with much more traffic than Booli will ever achieve. About 80% to 90% of all properties sold in Sweden are marketed on Hemnet. Although this percentage is decreasing, they still hold a strong position. With the current model Booli uses, they will not become the market leader. They would need to change their business model and start charging, which I don't think is in their plans, at least not yet.

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