Oma Savings Bank Plc: A Growing Finnish Retail Bank

Oma Savings Bank Plc (OmaSp) has emerged as a prominent player in the Finnish retail banking sector, demonstrating strong growth and profitability through strategic acquisitions and a customer-centric approach. This article explores OmaSp's acquisition strategy, its impact on customer experience and operational efficiency, and the bank's future prospects.

OmaSp's acquisition strategy has been instrumental in driving its growth and market share. In 2023, the bank completed the acquisition of Liedon Savings Bank's business, which expanded its customer base and enhanced its service reach. This strategic move aligns with OmaSp's core strategy of being local and close to its customers, both in digital and traditional channels. The acquisition increased OmaSp's total number of shares and votes, and added approximately EUR 65 million to the company's equity accumulation.

OmaSp's focus on customer experience and operational efficiency has contributed to its strong financial performance. In 2023, the bank reported the highest growth within its peer group, with excellent customer experience at its core. This strategy has led to improved efficiency and profitability, ranking among the best in its sector. OmaSp's strong funding base and liquidity further support its growth trajectory.

Regulatory changes and OmaSp's IRB application process have had an impact on its development. In 2022, OmaSp submitted an IRB application to the Finnish Financial Supervisory Authority (FIN-FSA), aiming to adopt the IRB approach in capital adequacy. In 2024, the FIN-FSA identified development needs in OmaSp's IRB framework, leading to the suspension of the IRB application process. This suspension may temporarily affect OmaSp's capital adequacy strategy, but the company is reassessing the benefits of the IRB approach in relation to its current credit portfolio.
OmaSp's expansion of digital service channels and branches has contributed to its strong growth and profitability. As of 2023, OmaSp operates 45 branch offices and extensive digital service channels, serving over 200,000 private and corporate customers nationwide. This expansion has allowed OmaSp to provide personal service and be local and close to its customers, both in digital and traditional channels. By offering a broad range of banking services and intermediated products, OmaSp has been able to attract and retain customers, contributing to its strong growth and profitability.
In conclusion, Oma Savings Bank Plc has demonstrated remarkable growth and profitability through its strategic acquisition approach, customer-centric focus, and operational efficiency. Despite regulatory challenges, OmaSp remains a solvent and profitable bank, well-positioned to continue its growth trajectory and maintain its competitive advantage in the Finnish retail banking sector.