Ålandsbanken expands into northern Sweden with two branches

Ålandsbanken will open branches in Haparanda and Luleå in northern Sweden next year, Yle reports. The Haparanda branch will serve people and businesses in the border region who need banking services in both Finland and Sweden.

The Haparanda branch is expected to open during the year and will initially employ three people.

“The market and potential are quite large when we look at the entire Torne Valley. Many people live and work on different sides of the border,” said Jenny Stadin, the bank’s branch manager for northern Sweden.

The Luleå branch is scheduled to open around the turn of the year and will also initially employ three people. It will focus on investment advice, wealth planning and financing.

Ålandsbanken chief executive and group chief executive Peter Wiklöf said the region was characterised by substantial investments, strong entrepreneurship and growing demand for expert financial advice.

Ålandsbanken employs about 1,000 people in Finland and Sweden. In Finland, its northernmost branch is in Oulu.

The number of bank branches has generally declined in both countries as digital services have expanded. According to the Finnish Financial Supervisory Authority, Finland had 701 bank branches at the end of last year, compared with about 3,500 in the mid-1980s.

Timo Peltonen, a senior adviser at the authority, said branch numbers can also change when banks adjust their business models. Some banks may seek a stronger regional market position by adding branches, while others may reduce their presence if growth in an area has not met expectations.