Banks, Estonia, EU – Baltic States, Financial Services, Legislation, Loan

Ferratum Bank Limited, subsidiary of the Finnish Ferratum Group, which has operated in Estonia since 2006, received a credit institution license and started operating at the Estonian market as a bank in April. Ferratum's managing director Lea Liigus said that the company is planning to expand into countries where one can operate only with a credit institution's license. In addition, the license gives the company greater options for using different financing opportunities.

Liigus stated that the status of a bank makes the company more reliable and transparent for clients.

Ferratum plans to expand its market share in Estonia in the next few months and launch new products, which the new license permits. Ferratum Bank Ltd received in September 2012 a European Union credit institution license from the Financial Supervision Authority of Malta. According to Liigus, Ferratum Bank's first year of operation is satisfactory, operations were started besides Estonia in Slovakia and Poland.

A license provides more favourable opportunities. In 2005, consumer credit institution Bigbank AS received a credit institution's licence. One of the company's owners Parvel Pruunsild said that financial institutions apply for the licence mainly to be able to include money at more favourable conditions from the market and the licence creates credibility for clients.