Shopping drives increase in demand for consumer loans in Finland

shopping

Finns are the most likely Nordic people to consider taking a loan this summerIn Sweden, 19% of those surveyed plan to take out a loan for the summer, about the same level as last year. While in Finland and Norway, the proportion of respondents considering taking a loan increased – with Finland showing the biggest jump, up from 14% to 36%. 

A third of Finns said they were thinking of borrowing money with shopping being the biggest motivation. Home renovation and travelling came out as the top reasons for borrowing in Sweden and Norway.

Interest rate the number one consideration when choosing a lender

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Tieto asked what people consider important when choosing a lender. Across all countries, interest rate is the number one consideration. In Sweden and Norway, the bank’s reputation comes a close second with 57% and 45% respectively. While in Finland, a flexible repayment plan took second place with 49%.

 

Swedes not as faithful to traditional banks

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The survey shows that Swedes are not particularly faithful to traditional banks. Respondents who were considering moving banking provider preferred new entrants such as Klarna and online banks. 

Finns are the most traditional when it comes to choosing a loan provider, with 61% choosing to stay with their current provider and 20% to go to a traditional bank. The corresponding figures for Sweden are 46% and 12%, and for Norway 40% and 21%.

These results show how important it is for loan providers to step up and meet the heightened customer expectations of today. Data is opening up so many new opportunities to improve experience and provide the best possible service. In this industry, the "hyper personalized" experience will define the future"

Jonas Brännvall, Director of Credit Products, Tieto.

Survey results

More than 3,000 people across Sweden, Norway and Finland were interviewed about their borrowing plans for the summer. The results presented here show an average among the countries. 

What are you considering taking a loan for this summer?

What are you considering taking a loan for this summer?

9

Home renovation

Home renovation

7

Car/Motorbike

Car/Motorbike

6

Shopping

Shopping

6

Travel

Travel

3

Home decoration

Home decoration

3

Summer party

Summer party

2

Wedding

Wedding

2

Activities

Activities

2

Boat

Boat

2

Children's activities

Children's activities

2

Deposit for holiday home

Deposit for holiday home

3

Other

Other

73

Not considering borrowing

Not considering borrowing

  • Home renovation
  • Car/Motorbike
  • Shopping
  • Travel
  • Home decoration
  • Summer party
  • Wedding
  • Activities
  • Boat
  • Children's activities
  • Deposit for holiday home
  • Other
  • Not considering borrowing

Where would you consider taking this loan out?

49

Current bank/provider

Current bank/provider

18

New provider : traditional bank

New provider : traditional bank

15

New provider: delayed payment (for eg. Klarna)

New provider: delayed payment

7

New provider: peer to peer lending platform (for eg. Lendify)

New provider: peer to peer lending

16

New provider: online bank

New provider: online bank

19

Don't Know/Not sure

Don't know/Not sure

Which aspects would you consider very important when taking a loan for the summer?

67

Interest rate

Interest rate

50

Bank's reputation

Bank's reputation

38

Customer service

Customer service

37

Flexible repayment plan

Flexible repayment plan

29

Amount you can borrow

Amount you can borrow

27

Low late fees

Low late fees

22

How fast you can receive the money

How fast you can receive the money

19

Other

Other

Our tips if you’re planning to borrow money for the summer

  • Be careful to pay on time in order to avoid additional fees and costs

  • Choose direct debit / e-invoice for simpler and cheaper payments

  • Compare interest rates and fees – it is essential to compare the EAPR (Effective Annual Percentage Rate) between loan providers

  • Avoid having several small loans

  • Be aware that your age and profession will affect your ability to borrow money

  • Make a budget so you know you can afford to re-pay the loan

  • To have regular savings is important and can give you better loan terms

Download the survey results

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Tieto Loan Barometer is based on results from a survey conducted by YouGov in Sweden, Norway and Finland. Access all the results by filling in this form.

Thank you for your interest! An email from Per Dahlqvist with a link to the survey results will be sent shortly to the email address you provided.

Contact us

Tieto Financial Services is a trusted partner with 2,500 industry experts and over 300 customers in the Nordics and beyond. We capture the significant opportunities of the data-driven world and turns them into lifelong value for people, business and society

Any questions? Any comments? Don't hesitate to get in touch!

Jonas Brännvall

 

Jonas Brännvall

Director of Credit Products, Tieto

jonas.brannvall@tieto.com

+46735047748

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About the survey

Tieto Loan Barometer is based on results from a survey conducted by YouGov in Sweden, Norway and Finland between 26 April and 6 May 2019. A total of 3,040 interviews were conducted with men and women of the age of 18 and older. In Sweden 1,010 interviews were conducted, in Norway 1,020 interviews and in Finland 1,010 interviews.

This survey was previously run by Emric, which was acquired by Tieto in 2016. This is the fifth time the Summer Loan Barometer has been performed in Sweden and the second time in Finland and Norway.

The maximum margin of error in this survey is 3.1 percent.