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 for 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.
- Nordea Bank
- OP Financial Group
- Municipality Finance
- Danske Bank
- Evli Bank PLC
- Aktia Savings Bank
- Bank of Aland
- Alexander Corporate Finance Oy
- Carnegie Investment Bank AB
- BNP Paribas Fortis
- OP Yrityspankki Oyj
- POP Bank Group
- eQ Bank Abp
- S-Bank Ltd
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 of 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.
6. Evli Bank PLC
Established in 1985, Evli Bank PLC is one of Finland’s leading banks. It manages €14.3 billion worth of client assets and had a net profit of €81.8 million in 2019. Evli Bank has branches in the UAE, Russia, and Sweden. Its focus is to support corporations, institutions, and individuals’ investments by providing products and services such as asset management and capital market services, equity research, corporate finance services, administration of incentive programs, mutual funds as well as alternative investment products. The bank is headquartered in Helsinki and has over 300 employees. It is currently listed on NASDAQ Helsinki Ltd.
7. Aktia Savings Bank
Aktia Bank Plc launched its services in 1991. It has operations in Western Uusimaa, Eastern Uusimaa, Keski-Uusimaa, Metropolitan area, Ostrobothnia, and Tampere. The bank has more than 1700 ATMs and serves over 350,000 customers. Records released in 2019 showed that the bank had an operating income of €221.4 million and assets under management worth €9.9 billion. Aktia Bank serves entrepreneurs, small firms as well as private individuals with products including real estate finances, insurance services, and asset management.
8. Bank of Aland
Bank of Aland is one of Finland’s largest commercial banks. It has operations in the cities of Tampere, Pargas, Vaasa, and Turku. Financial records for 2019 shows that the bank’s net worth was $7.2 billion while it made $24 million in profit. The bank has peculiar services like the digital piggy bank and the budget tool. It has over 700 employees and is headquartered in Mariehamn. It provides cash accounts, savings accounts, corporate loans as well as mortgage loans among others.
9. Alexander Corporate Finance Oy
Alexander Corporate Finance was established in 1988 and has its headquarters in Helsinki. The bank which forms part of the Alexander Group is a private investment bank. The bank’s operations are regulated by the Financial Supervision offering services such as valuation services, M&A, as well as advisory services on matters of capital market transactions.
10. Carnegie Investment Bank AB
Founded in 1803, Carnegie Investment Bank AB is one of the largest banks in the Nordic region. The bank specializes in Corporate Finance, Equities, and Securities, as well as Private Banking. The Finnish branch of the institution has its head offices in Helsingfors and serves high net-worth individuals as well as small businesses. Other products available to its customers include equity capital market (ECM) and advisory services in Mergers and Acquisitions (M&A). The company was valued at over $12.5 billion in 2019 and has more than 600 employees.
11. BNP Paribas Fortis
BNP Paribas Fortis is considered amongst the largest and most successful foreign banks in Finland. The bank came into existence in 2009 after the merger of two banks within the Finnish banking sector. Operating out of Helsinki, BNP Paribas Fortis has thousands of customers and tens of branches throughout Finland. Over the years, and after the merger, BNP Paribas Fortis now has a total asset of over $350 billion, and an average yearly net profit that exceeds $2 billion.
12. OP Yrityspankki Oyj
OP Yrityspankki Oyj began operations in 1902 and is considered amongst the first banks to be established in the country. Headquartered in Helsinki, the bank was initially named OP Corporate Bank. This name was changed after the bank underwent restructuring.
OP Yrityspankki Oyj provides its clients with different types of banking services that include insurance, savings account, current account, asset management, and more. Additionally, the bank has several subsidiaries within and outside Finland. As such, OP Yrityspankki Oyj serves as a central headquarter, which dictates and determine policies for all its subsidiaries around the world.
OP Yrityspankki Oyj has a large total asset, significant income, and a large market share of over 9%. The bank’s success is partly attributed to its willingness to give its clients long-term loans for various financial needs.
13. POP Bank Group
POP Bank is considered amongst the biggest banks in Finland. However, unlike other banks, POP Bank mainly operates within the retail sector.
POP Bank Group is a large consortium of financial institutions of over 20 business units that provides clients with different financial services. Its client list cut across the private sector, small organizations, and agricultural industries. POP Bank generates a decent net profit that averages over $10 million per annum. Also, it has a total asset that is worth a little over $5 billion.
14. eQ Bank Abp
eQ Bank Abp was established in 1998 and is amongst a few financial institutions in Finland that are focused on internet-based asset management and brokerage services for their clients, which are predominately involved in the retail business. Also, this bank is a subsidiary of eQ Corporation, which is presently owned by Straumur Bank after a take-over in 2007.
Over the years, eQ Bank Abp purchased a real estate management business. As a result, the bank is now involved in business transactions that involved hotels, car parks, shopping complexes, and similar business models.
15. S-Bank Ltd
S-Bank was founded in 2006, and it has its headquarters in Helsinki. The bank is considered in Finland as a supermarket bank. Before the end of the first decade of the 21st century, S-Bank was considered a very competitive financial institution. However, significant changes to the financial law in Finland drastically affected business. The law particularly affected personal accounts that were managed within cooperatives. As a result, keeping such accounts open was so difficult. Additionally, a fine over $1 million further affected the profit margin of the bank. Nonetheless, the bank still operates within Finland and Sweden.