Improvements proposed for micro and small business banking

Suomen Yrittäjät, the Finnish SME association, considers the proposal a significant improvement that would make it easier to start a business.

“The proposal addresses problems that small businesses have faced. If implemented, it would remove challenges related to opening accounts, restricting services and unjustified account closures,” says Petri Malinen, Senior Economist at Suomen Yrittäjät, who served on the working group.

The report was submitted on 23 Jan. to Sakari Puisto, the Minister of Economic Affairs responsible for financial markets.

Under the proposal, deposit banks that provide corresponding services to legal entities or the self-employed would be obliged to offer a basic bank account to micro and small businesses as well.

“This is a very important and long-awaited reform. Basic banking services are now essential for all business activity,” Malinen says.

Thousands of new businesses

“The problem has been that businesses have not been able to access basic banking services, which has effectively prevented them from operating. This is now set to change,” Malinen notes.

Suomen Yrittäjät estimates that in the past, banking services were denied particularly to business owners with an immigrant background and to those who had experienced bankruptcy. In recent years, however, difficulties in accessing basic banking services have affected an increasingly broad share of all micro and small business owners.

“Immigrant business owners have faced long delays, unclear criteria, and restrictions or refusals of services, which weakens their ability to operate a business and makes it harder to settle in Finland,” says Marianne Ruusunhelmi, Specialist in Immigrant Entrepreneurship at Suomen Yrittäjät.

For small businesses, the availability and usability of services are particularly important. The proposed provisions would significantly resolve problems related to opening and terminating accounts. The reform could enable the creation of up to thousands of new businesses.

“The proposal would have a broad positive impact,” Malinen says.

Relief for de-risking

The proposal also addresses the so-called de-risking phenomenon, in which banks avoid risk by restricting services or refusing to open accounts for small businesses.

The working group proposes broader information rights for the Financial Supervisory Authority, as well as clear statutory grounds for when a basic bank account may be refused or terminated.

“This could significantly reduce the problems caused by banks’ unnecessarily cautious practices for micro and small businesses,” Malinen says.

The proposal also implements a policy line adopted at the government’s mid-term review under Prime Minister Petteri Orpo. The aim is to safeguard access to basic banking services for businesses and associations and to streamline the overall immigration process, which includes opening a bank account.

The report will next proceed to a consultation round and further legislative drafting. The goal is for the proposed amendments to enter into force in July 2027.

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