Lithuania-based Saldo Bank is bringing its term deposits and digital loan services to the Finnish consumer market. The FinTech company announced the opening of its banking operations in Finland, beginning this October.
The first banking product launched by the company is a traditional term deposit account, with the highest interest rate on the market. Saldo Bank offers up to 4.00% interest for a 24-month deposit, which is about 0.5% higher than the second-best offer.
“Until now, Finns have lost their wealth by keeping their money in normal checking accounts. We want to intensify the interest rate competition between banks and make deposit interest rates more fair for the consumers than they are now,” said Saldo Bank CEO Jarkko Mäensivu.
Funds deposited in Saldo Bank’s term deposit accounts are covered by the standard deposit protection.
Saldo Bank made a strategic turn in 2019 when it set out to transform itself into an international digital bank. A crucial step of this transformation was reached in October 2021, as the company received a specialised banking license from the European Central Bank.
The banking license to Finland was successfully acquired this September, which made it possible for Saldo Bank to offer services in Finland.
“The development of our banking services is focused on Lithuania, where Saldo Bank launched term deposits and consumer loans already in the beginning of 2023. In addition to this, it also offers term deposits in the German market,” said Mäensivu. “Our next goal is to successfully open banking operations also in the Swedish market during the beginning of 2024 and from there to continue scaling our business internationally.”
In addition to geographical expansion, the neobank is planning to expand its product offering in Finland. According to Finnish branch manager Lauri Pitkänen, Saldo Bank will become a versatile digital bank in Finland serving several different target groups.
“In the near future, we will offer new digital deposit and lending products. We aim to serve both consumer and business customers,” said Pitkänen.
Saldo Bank’s operating model is based on a fully digital and automated credit granting system, which enables personal and real-time loan offers.
Source : IBS Intelligence