Basic banking services for international students must be secured

The Student Union of the University of Helsinki (HYY) considers the proposed measures to improve the accessibility of basic banking services to be steps in the right direction. Foreign citizens living in Finland in particular often encounter challenges with the accessibility of basic banking services, and efficient and swift action must be taken on this.

Foreign citizens face problems especially when seeking to become customers of banks. The obligations and risk-based approach required by current legislation affect the availability of banking services. The obligations should not be interpreted so strictly as to become insurmountable in order to ensure that everyone has the opportunity to receive the basic banking services guaranteed by legislation.

Banks should be encouraged to develop their practices regarding services for foreign citizens in order to make the process easier and more understandable to customers. Banks should also be obligated to monitor the processing time for applications and strive to be more active in taking action against any problems with the process.

The report does not address the need to develop banks’ communication, which, in reality, requires major improvements. Foreign citizens have difficulties receiving banking services and comparing banks because the amount of information available in English varies. Banks should develop and strengthen their English communication. We believe that it is also advisable to increase communication on the banks’ statutory obligations that affect the availability of banking services for foreign citizens. At the same time, more information should be provided to people moving to Finland on how the Finnish banking system operates and on customers’ right to receive basic banking services.

We support the measures to expand the reach of customer service, such as including the obligation to provide customer service within a reasonable time in the Act on Credit Institutions. Customer service should include both responding to contacts from customers and services provided at the bank’s branches. Foreign citizens almost always have to arrange a meeting at one of the bank’s branches in order to open a bank account. Due to the small number of available times for meetings in English, opening an account takes a long time. However, foreign citizens do not have other options because of identification practices. Delays in responses to contacts also delay the entire process.

The customer service obligation can improve the service level for foreign citizens and make it easier to get settled in Finland. Follow-up on how well banks have stuck to the obligation should also be conducted so that we can monitor the improvement in the reach of customer service.

We support the added obligation for banks to offer basic banking services to associations, too. This obligation should apply to both registered and unregistered associations. The services should also be affordable, and customer service should be available within a reasonable time. The better availability of banking services for associations would support the operation of organisations, and through them, both support civic society and increase participation in society.

When dealing with the difficulties foreign citizens have with receiving banking services, the effect these problems have on integration should be taken into account. For instance, the difficulties international students and researchers have with opening a bank account or receiving services make it considerably more difficult for them to adapt to Finnish society.

International students and researchers need a bank account in order to receive their grant or salary, for instance. When opening an account takes an unreasonable amount of time, international experts are not able to pay their rent or other expenses. Instead of studies and work, their time is spent on struggling with these challenges. Difficulties with receiving basic banking services constitute a significant challenge to Finland’s attractiveness in the eyes of international experts. 

The report also does not account for the role banks have in strong identification. In Finland, online banking IDs are used for identification and signing in to services fairly extensively. They make it possible for people to participate in Finnish society. Foreign citizens have significant difficulties with receiving these IDs within a reasonable time. International students from outside EU/EEA countries, for instance, have been required to have a Finnish ID card in order to receive online banking IDs. However, the Financial Supervisory Authority has stated that electronic identification services may only be refused if the person does not have a social security code or if they have not been included in the population information system. Students are not aware of this and end up acquiring an ID card. Getting the card takes several months, which further delays the process of getting online banking IDs as well as creates unnecessary additional costs.

For good reason, people have considered the process too long, confusing and stressful. With online banking IDs used to identify oneself in services provided by the authorities, banks should have a strong obligation to offer the IDs to all customers under the same terms and in a reasonable time.