SY welcomes Government plan to guarantee basic banking for small businesses

The Government is proposing to Parliament that micro and small businesses be granted a statutory right to a basic bank account. Suomen Yrittäjät, the Finnish SME association, welcomes the Bill, dated 1 October, as a significant improvement and a step forward for people starting a business. “This is a significant and long-awaited reform.” These days, basic banking services are essential for all businesses,” Petri Malinen, Senior Economist at Suomen Yrittäjät, says.

“The Bill tackles problems that small businesses have experienced. If enacted, it would address the problems businesses face when opening accounts, having their services restricted or having their accounts closed without good reason,” Malinen says.

Under the Bill, deposit banks that provide equivalent services to legal entities or business operators would be obliged to offer a basic bank account to micro and small businesses as well.

Bill could pave the way for thousands of new businesses

“The problem has been that businesses haven’t been able to access basic banking services, effectively preventing them from operating. That’s now set to change,” Malinen notes.

Suomen Yrittäjät believes that in the past, banks particularly denied services to business owners of an immigrant background and those who had experienced bankruptcy. In recent years, however, an larger share of micro and small business owners has faced difficulty accessing basic banking.

For small businesses, being able to access and use banking services is particularly important. The proposed provisions would be a significant fix of problems related to opening accounts and accounts being closed. SY estimates that the reform could pave the way for thousands of new businesses.

“If enacted, the Bill would have a broad positive impact,” Malinen says.

Clearer rules for basic bank accounts could curb unwarranted de-risking

The proposal also addresses the issue of unwarranted de-risking, where banks avoid risk by restricting services or denying accounts to small businesses.

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

“This could significantly reduce the problems that banks’ excessive caution causes for micro and small businesses,” Malinen says.

Further information: Senior Economist Petri Malinen, +358 50 434 5952, petri.malinen@yrittajat.fi