Finnish banking

jwoods · Post by **jwoods** » Tue Sep 25, 2007 1:40 pm

I can understand that, but a PIN is infinitely more secure. There probably isn't much card fraud in Finland though... I know they never even check my signature when I sign for stuff in Finland. When I worked in a UK supermarket, we had to do a proper check with the back of their card, and if the signatures looked different - ask for another example.

I'm still not too sure why you have to pay for banking in Finland, I know if that was introduced here there'd be a riot. I guess consumer rights aren't as strong, and there's less competition. Banks make so much money, they should use this to ditch the expenses and subsidise the new equipment going to retailers.

**Sponsor:**

Karhunkoski · Post by **Karhunkoski** » Tue Sep 25, 2007 1:45 pm

jwoods wrote: I'm still not too sure why you have to pay for banking in Finland, I know if that was introduced here there'd be a riot. I guess consumer rights aren't as strong, and there's less competition.

I'm guessing you're too young to remember bank charges in the UK. You do realise when they advertise "free banking" in the UK, it isn't actually "free", you still pay for it somewhere.

In my experience everyday banking in Finland is much more efficient than in the UK. Ask for a cheque book here and they'll laugh in your face. If I email my bank in Finland I usually get a reply the same day, in the UK this can take literally weeks. Yes there is less competition here but I've not seen that having a negative effect on the banking service I get.

jwoods · Post by **jwoods** » Tue Sep 25, 2007 1:52 pm

hah, perhaps!

I'm sure I'll be fine, just annoying to have to pay for stuff you're not used to, especially when you're getting nothing in return... 0.25% interest compared to 3% being one example.

I'm sure I do pay for it in other ways; the banks charging the retailers who in-turn raise their prices etc...

Karhunkoski · Post by **Karhunkoski** » Tue Sep 25, 2007 1:57 pm

jwoods wrote:
I'm sure I'll be fine, just annoying to have to pay for stuff you're not used to, especially when you're getting nothing in return... 0.25% interest compared to 3% being one example.

Whilst I remember, compare the inflation rates between Finland and the UK, sometimes they can help justify part of the differential in interest. Remember also that with low interest rates here, it makes it much cheaper to borrow money to buy a house.

jwoods · Post by **jwoods** » Tue Sep 25, 2007 2:01 pm

Ha, I can't wait to experience the joys of getting a mortgage in Finland this time next year, I bet that's a whole barrel of fun.

I'm sure they love giving mortgages to scary foreigners with no Finnish relatives to guarantee it

Karhunkoski · Post by **Karhunkoski** » Tue Sep 25, 2007 2:09 pm

Whereabouts are you moving to? Assume you have a Finnish gf (or bf, just to keep PC)? Getting approval in some small town bank can be easier if the person behind the desk actually knows you or your partner. Oh, and bring a big deposit!

jwoods · Post by **jwoods** » Tue Sep 25, 2007 2:17 pm

Afraid not

I'm sure Daddy can help me out with the big deposit when the time comes, transfer the money into my account or something...

Who knows - at this pace of Finnish banking modernisation they might actually welcome and make it easy for other EU citizens to buy property out there, this time next year!

Anyway, far too early for me to worry about any of this!

sinikala · Post by **sinikala** » Tue Sep 25, 2007 2:35 pm

Karhunkoski wrote:
jwoods wrote: I'm still not too sure why you have to pay for banking in Finland, I know if that was introduced here there'd be a riot. I guess consumer rights aren't as strong, and there's less competition.
I'm guessing you're too young to remember bank charges in the UK. You do realise when they advertise "free banking" in the UK, it isn't actually "free", you still pay for it somewhere.

This is a case where you are both wrong. I don't have an intimate knowledge of Finnish consumer rights, but they can't be any weaker than in England where a proportion of customers are fleeced. Which is perhaps why most people have to pay some banking fees in Finland..

The banking system in England is free for many, but it works by subsidy... punishing a small fraction of the customers with large admin charges so that others bank for free. I have seen for example...

£25 for going overdrawn
£30 a photocopied letter telling the customer they are overdrawn.
£10 fine for every item of £10 or more charged against the account when it is in unauthorised overdraft
£25 for bounced cheques or direct debits which have to be bounced due to insufficient funds.

There were several people I was at Uni for this who were very poor at keeping their finances in order and were often hit for huge charges ... in the £100s. Equivalent to several people's annual banking fees in Finland.

For most people who keep their account in order, they have to pay few fees, probably less than in Finland. But for some, often those least able to pay for it... banking in England is hugely expensive ... hence

http://news.bbc.co.uk/2/hi/business/6169539.stm

Karhunkoski · Post by **Karhunkoski** » Tue Sep 25, 2007 2:37 pm

Oh it's easy enough to buy here for a foreigner, a piece of cake if you bring the cash, signed and sealed by your own hand and the vendor's hand, without all the rip off solicitors fees you have in the UK

The problem is borrowing money. Put a big enough deposit on a new build and they will lend you money (from the housing company) often with few questions asked (you don't need to go near a bank).

Taking out a mortgage from a bank here for a Brit is about as problematic as is it is for a Finn just moving to the UK. They want security, guarantees and sometimes a good deposit.

Still, as you say, early doors, but of course when the time comes you can be sure of good support and advice from your ever-friendly forum

Karhunkoski · Post by **Karhunkoski** » Tue Sep 25, 2007 2:45 pm

sinikala wrote:

The banking system in England is free for many, but it works by subsidy... punishing a small fraction of the customers with large admin charges so that others bank for free. I have seen for example...

Yes this is true, typically 20% of people subsidise the opther 80%'s "free banking" through their self-inflicted fees

But things are changing:

First Direct is to stop paying interest on its 1.2 million current accounts customers

http://www.telegraph.co.uk/money/main.j ... bank18.xml

zam · Post by **zam** » Fri Sep 28, 2007 11:01 pm

Quite amusing topic... In my experience the British banking system is from another era when comparing to the Finnish one (being like a decade behind).

IIRC officially they measure the efficiency and progression of monetary services and banking business by the amount of cash money in circulation (the lower the amount, the more advanced system the country has). In Finland it is among the lowest in the world (or at least in Europe, around 2% of the GDP)...

Hank W. · Post by **Hank W.** » Fri Sep 28, 2007 11:22 pm

Finns have only had these "bank cards" since 1976, so compared to France where the average person writes 96 checks a year we are still you know... en la campagne... The giro system has been used in lieu of a checque, basically when you sign the bill, fill in your account number and put it into a maksupalvelu... well its not so different than writing the sum, the reciever and signing now is it...

sinikala · Post by **sinikala** » Sat Sep 29, 2007 1:35 am

zam wrote:Quite amusing topic... In my experience the British banking system is from another era when comparing to the Finnish one (being like a decade behind).

IIRC officially they measure the efficiency and progression of monetary services and banking business by the amount of cash money in circulation (the lower the amount, the more advanced system the country has). In Finland it is among the lowest in the world (or at least in Europe, around 2% of the GDP)...

That is not a banking choice it's (a) because Finns are tight arses, so less cash is needed (b) there is less money in circulation because we give so much to the government as tax, that there is little left to draw as cash and (c) and even if it was drawn as cash there is nothing to spend it on in 95% of this god forsaken shed of a country.

In terms of banking services, there is little difference except that UK banks are open on Saturdays. I had online banking before I came to Finland, I had online banking when I came to Finland. No difference.

Oh... one difference... In Nordea, I had to sit and discuss my financial matters infront of other waiting customers... in every UK branch I've been in private rooms are used for such discussions... here private rooms are available when you have €xx,000 in your account and are a special customer (I asked). Piss-poor IMHO.

In short, you are talking out of your cornholio, just like our special needs friend Henrik.

No offence, like.

jwoods · Post by **jwoods** » Mon Jan 14, 2008 11:50 am

Well I got my Visa Debit card from Nordea.

And surprise-surprise, it's only accepted at about 80% of shops!

Spoke to someone at Nordea who in-turn spoke to people at Luottokunta, and apparently retailers need to sign new contracts to be able to accept Finnish Visa Debit cards.

Bizarrely enough, my UK Visa Debit card worked at 100% of places in Finland - but Luottokunta and Nordea said this was to be expected (probably goes through a different system or something).

Crazy system! They've suggested I get an Eelectron card too, for when my Debit card fails....

blaugrau · Post by **blaugrau** » Mon Jan 14, 2008 12:08 pm

Why was it again that you did not want a Visa Electron debit card? In my experience, the vast majority of shops and restaurants accept it, I don't know what gave you the opposite impression..?

Finland Forum

Find information about moving to, living in and life in Finland

Finnish banking

Re: Finnish banking

Re: Finnish banking