Mikael Hussain, CEO of the credit company, considers a stricter interest rate cap in Finland to be more reasonable for the debtor. However, he wonders why there are gaps in the interest rate cap.
Coronary pandemic during which many are left with money to save. According to the Bank of Finland’s figures, the savings of Finnish households have grown faster than debt. In 2021, deposits grew at an annual rate of 5.5 percent, compared with an annual growth rate of 4 percent. Growth in consumer credit was only 2.6 per cent.
Although the financial buffers have improved for many, this has not happened to everyone, points out the CEO of the Swedish consumer credit company Anyfin. Mikael Hussain.
As people’s average savings increase, a large portion of the increased wealth will actually end up in a concentrated crowd, Hussain estimates.
“In general, in Sweden, Finland and globally, people who already had savings, equity and fixed income investments in the past have increased their buffers as the market has risen,” Hussain says.
Similarly, there are a lot of people who have not accumulated savings during the Korona period.
The effects of the corona on many economies have been hit negatively. Different solutions have been made in societies to protect them.
Hussain compares the measures taken in the Finnish and Swedish loan regulations, and finds successes in both, but there is also room for improvement.
Consumer credit company The CEO’s answer to the question of what Sweden could learn from Finland sounds surprising.
Hussain would take Finland’s interest rate cap to Sweden. In Finland, the interest rate ceiling is currently 20 per cent, while in Sweden it is 40 per cent.
“I see no reason why the ceiling should be higher in Sweden than in Finland,” says Hussain.
He considers the Finnish level to be clearly more reasonable for debtors.
Anyfin feels like its brand is striving to profile itself as something other than a bad quick tip company.
The company’s most popular product is a refinancing service that can lower the cost of an existing consumer loan.
Hussain says there are players in the industry who seek to take advantage of people’s financial status, and Anyfin wants to fight the phenomenon and do the opposite.
Of course, even a 20 percent interest rate cap offers lenders opportunities to make a profit, at least in the current world of negative interest rates.
Pandemian During the period, Finland lowered the reference rate to a low of ten per cent.
However, Hussain points out that there were gaps in the interest rate cap.
According to him, it was possible for creditors to circumvent the ceiling, for example, by raising the monthly payments on the loans they offer.
Although the interest rate cap in Sweden has been lower than in Finland, it has taken better account of the real cost of the loan, according to Hussain.
Second, credit card debt and “buy now, pay later” arrangements were excluded from the interest rate cap.
“I’m surprised this happened, but I’m sure the credit card companies and ‘buy now, pay later’ providers were happy.”
According to Hussain, credit card debt and later payments have been more common in Sweden.
For many in the western neighborhood, they have been the beginning of debt problems in the same way as in Finland, especially quick levers.
Is also one thing related to money and debt, where Hussain thought Finns could learn from the Swedes.
He talks about cultural elements.
According to him, Sweden has a holistic approach to monetary matters: how to manage the debts of one’s own household but also investments.
“It’s possible to save and pay off debt at the same time,” he sums up.
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