Finland has almost 6 million inhabitants, thousands of lakes and hundreds of thousands of reindeer. We also have a loan market dominated by the big giants.
Many Good Financele think that the situation may a bit resemble the structure of the Finnish grocery store: two big players, behind which a group of competitors of different sizes are grouped behind.
Finnish loan market two playing field
A recent study by the Federation of Finnish Financial Services, sorting out loans and deposits on the balance sheets of Finnish MFIs by bank and / or banking group. The study was conducted on December 31, 2015 based on information.
The study shows that the Finnish loan market is dominated by Good Lender financial institutions. Good Finance holds a good 30 percent of the market and Nordea holds about 28 percent.
The next Danske Bank will then have a much smaller market share, around 9-13%. Other financial institutions may therefore be content with smaller market shares of a few percent.
Market shares may vary slightly depending on whether they are mortgages, deposits or other loans.
The Finnish loan market
Each of them can prevent concentration on its own, for example by competing for products and services it uses. Telephone subscriptions, credit cards and electronic contracts are just a few examples of competitive products.
A challenger or not?
One of the most interesting ones in the table is the “others” group because it contains information about credit institutions other than those specifically mentioned in the tables. Thus, the group “others” includes, for example, Goodmoney and Municipality Finance. Together they have about the third largest market share.
Municipal Finance says nothing to most ordinary Finns, but Goodmoney can be an interesting challenger to sell the loan market.
However, some of those excited about the extra competition may be disturbed by the fact that the bank in question is part of the Goodmoney – the same chain that dominates the Finnish grocery trade.