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Saldo Bank opens branches in Sweden in an effort to improve the "fairness" of local interest rates.

February 29, 2024
2 Min Reads

The Finnish digital neobank Saldo Bank is launching its operations in Sweden, offering competitive fixed-term deposit interest rates upon its arrival.

For a one-year deposit, Saldo Bank is offering interest rates as high as five percent. Jarkko Mäensivu, CEO of Saldo, claims that the main goal of fintech is to improve "fairness" in fixed-term deposits. The Finnish-founded digital neobank also aspires to take Sweden's fixed-term deposit interest rate competition to new heights.

This month, the bank will launch operations in Sweden with the goal of providing a far more alluring alternative than other regional rivals. The next highest offer is 4.4%, according to the comparison website Compricer. This strategy has already been successful; multiple Finnish banks were forced to increase their own interest rates when the bank opened for business in October 2023.

According to Mäensivu, the interest paid on fixed-term accounts has been extremely low for a considerable amount of time. Customers should be paid interest rates that at least match market rates.

The digital bank intends to employ local funds to expand its loan portfolio in Sweden, and one of its main goals is to target that country. In the end, Saldo Bank wants to grow into a worldwide digital bank that offers digital banking services to customers and, eventually, companies.

Supported by the fintech hub in Lithuania

Saldo Bank doesn't plan to open branches in Sweden; it currently solely conducts business online. Fixed-term deposit services and completely automated lending solutions are provided by Saldo Bank to its customers.

In addition to ensuring responsible lending through its sophisticated scoring and analytics system, the company's lending system facilitates the expansion of its global operations.

Saldo Bank was founded in Finland. Nonetheless, the Bank of Lithuania oversees the company's primary banking activities, which are located in Lithuania. Furthermore, Vilnius is home to Saldo Bank's technological development center, which was established in Lithuania in 2021. Saldo Bank employs more than sixty individuals and has a specialized bank license from the European Central Bank.

Fintechs and other financial enterprises have been drawn to Lithuania for some time now by the country's favorable regulatory environment. Saldo Bank has also profited from Vilnius's IT hub and fintech-friendly regulations, according to Mäensivu's explanation from the previous year.
 

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