Despite Finland being a small company, its banking system is very much advanced and it has been reported that it has advanced most of the policies dealing with banking hence the sector thriving at a high rate.
The country has 17 banks that are in operation, and they are regulated by the central bank which is responsible too in monitoring the economic situation of the country.
The central bank is also mandated with the responsibility of the implementation of monetary policies, overseeing financial stability, issuance of banknotes and maintenance of the financial and economic stability of the country.
1. Nordea Bank
Established more than 200 years ago with headquarters in Helsinki, this is the largest bank in Finland in terms of total assets. It has also been published as the leading bank in the Nordic markets and this includes Sweden Denmark and Norway.
In Finland, it serves approximately 3 million clients, with a customer base of 10 million customers in the Nordic region and a source of employment to 29,000 employees. By end of 2019, its total assets amounted to $650 billion, with credit ratings Aa3, AA-, and AA-. According to Copenhagen and Stockholm stock exchanges, the bank’s shares have been listed on the Helsinki market capitalization of $32billion as at the beginning of 2020.
2. OP Financial Group
Established in 1902, OP Financial Group is the second-largest financial institution in Finland on the basis of assets and market share. The bank engages in private and SME banking, corporate institutional banking, and insurance.
The bank has inculcated into its business 160 local retail independent banks that are also referred to as cooperatives, mortgage banks, card companies, Life assurance companies, and insurance companies so that they partner in serving their clientele.
3. Municipality Finance
As measured by assets, this is the third-largest bank in Finland with a lending portfolio of € 22.4 billion, total funding of € 30.9 billion and new long term funding of €7.4 billion as at records released in 2018.
The bank offers products and services that are fit and specifically made for Finnish municipalities and non-profit housing companies. Municipalities are the major shareholder in the bank at 53%, then the public sector pension fund at 31% and the government at 16%. The bank has its headquarters in Helsinki and was established three decades ago.
4. Danske Bank
This is a commercial bank that provides a number of products and services which range from savings and investments, debit and credit cards, online and mobile banking, and various loan products. It was established in 1871 and has headquarters in Copenhagen. It is listed as a public company.
Having penetrated the Finland banking market in 1985, the bank is ranked 5th in terms of market share with its 40 branches that are strategically situated around the country.
It offers its services and products both to private and corporate customers including credit cards, bank accounts, lending products, mobile and online banking, payment services, assets management, pension solutions, trade and export finance, risk management, and investment products.