Starting today, Finora is bank. We have been issued a special bank license by the European Central Bank, which allows us to start accepting deposits in addition to the financial services offered so far. Finora Bank’s focus continues to be on offering loan products to small and medium-sized companies, now we can do it on a larger scale than before and on better terms.
Finora has grown into an important financial services partner for hundreds of entrepreneurs, mainly small and medium-sized companies. Obtaining a banking license means that Finora has fulfilled the strict requirements for becoming a bank and is ready to make a significant leap in its development.
Andrus Alber, one of Finora’s founders and chairman of the board, explained: “Developing from a simple credit provider to a credit institution, i.e. a bank, and including deposits, is an expected step to improve the availability of funds and interest levels necessary for granting loans. This means that we can offer loans and other credit options to our main customer group, small and medium-sized companies, in a significantly larger volume and on better terms than before.”
“Finora Bank plans to attract deposits on very competitive terms, with returns that would be much more attractive than those offered by large banks,” added Alber.
“Finora Bank is starting operations at a new level of quality and growth. Becoming a bank has been the basis of our strategy since the establishment of the company, it became a reality as a result of constantly strengthening customer cooperation and growing experience. We are now focused on becoming the leading financial partner for SMEs, entrepreneurs and the creative industry. That is where our focus and competence lies. We know the needs and challenges of customers in this segment and we see great potential for Finora there,” said Veikko Maripuu, chairman of the council, and added: “First, we will continue to expand operations in Estonia and Lithuania. There are no specific plans to name other markets today, but the insufficient access of similar customer groups to loan opportunities and suitable banking services, together with our growing contact base in several other European markets, means that the bank’s management will receive all-round strategic support to expand the geography, if necessary.”
Now that Finora has a bank license, practical preparations to attract deposits and start operating as a bank begin. In the meantime, Finora will continue its daily lending activities and customer service in both Estonia and Lithuania. The date when Finora will start accepting deposits will be announced in the near future.
Decision-making at Finora Bank takes place locally in both Estonia and Lithuania, as the local teams know the needs of entrepreneurs in their market best.
The license of a special bank enables the provision of all banking services except for investment advice and brokerage of investment products throughout the European Economic Area.
The license was issued to AS Finora Capital’s subsidiary in Lithuania, Finora Kreditas UAB.