Finland Retail Banking: Opportunities and Risks to 2023

Finland Retail Banking: Opportunities and Risks to 2023

Summary

The Total outstanding loan balances (including credit card, personal loan and residential mortgage balances outstanding) in Finland grew at a compound annual growth rate (CAGR) of 2.4% during 2014-18, to reach €132,419m ($151,692.28m). Growth was supported by rising private consumption and investment activity.

Residential mortgage outstanding balances accounted for 73.3% of the total balances outstanding in 2018, followed by personal loans (24.1%) and credit card outstanding balances outstanding (2.7%). Personal loan balances were the fastest-growing segment, at a review-period CAGR of 3.2%. However, lower projected economic growth is expected to negatively impact the total loan balances growth in the forecast period of 2019-23. OP Bank, Nordea and Danske Bank are the top three Finnish lenders. The decline in total balances may have a negative impact on their business.

The Finnish deposits market recorded a CAGR of 3.5% over 2014-2018, due to lower unemployment and higher gross household income. Finland’s gross household savings rate is the lowest (2018: 6.6%) when compared to Sweden, Denmark and Norway. Moving forward, GlobalData anticipates the Finnish retail deposits market to grow at a CAGR of 3.6% over 2019-23.

Based on our proprietary datasets, this report analyzes the Finlandlending market, with a focus on the consumer lending segment. The report discusses in detail the credit card, personal, and mortgage loan markets, covering market size, competitors’ market shares, and survey insights. The report also provides a market overview and insights on the retail deposit segment. In addition, it covers the key digital disruptors in Finlandretail lending segment.

Scope

- Residential mortgage loans in Finland registered a review-period CAGR of 2.1%, supported by overall growing demand for housing and low interest rates.
- Though personal loan balance accounts for a smaller portion of household debt, the overall size of the market has consistently grown. The personal loan market in Finland grew at a review-period CAGR of 3.2%, the highest rate than mortgage and credit card debt.
- Credit card debt in Finland recorded review-period CAGR of 2.3%. Though credit card penetration is near the global average, credit cards are not popular with the younger generation.

Reasons to Buy

- Make strategic decisions using top-level historic and forecast data onthe Finlandretail lending industry.
- Identify the most promising lending segment.
- Receive detailed insights into lending in Finland, including consumerlending.
- Understand the changing market and competitive dynamics by learning about new competitors and recent deals in the retail lending space.
- Receive comprehensive coverage of the retail deposit market in Finland.