Corona Changed the Finnish Loan Application Behaviour in the Summer Season 2020
October 06, 2020 at 10:10 AM EDT
The effect of Corona is noticeable – Finns were interested in looking for savings on convertible loans and electricity contracts
FOR IMMEDIATE RELEASE
Helsinki, Finland, 5 October 2020 – The corona pandemic has affected the consumption habits of Finns. It is clear from the data of Zmarta, one of the largest comparison services in the Nordic countries, that during the summer the combination of loans increased in popularity compared to other types of loans.
The statistics of the comparison service Zmarta.fi show for what purposes Finns have tendered for a loan during the summer. This year’s figures have been taken between May and August and have been compared with the figures for the corresponding period in 2019.
Between May and August, fewer loans were taken out than in the previous year, but the relative share of loan consolidation compared to other types of loans has increased significantly from the previous year. This shows that Finns have been more interested in reducing their loan costs than a year earlier. There have also been more tenders for electricity contracts than usual, and August was a record month for Zmarta’s electricity comparison service.
The share of loan consolidation has increased significantly
The purpose of combination loans is to reduce the loan costs of Finns so that they do not pay the costs of each loan to a different place. The goal of combining loans is to help consumers save money as well as help them get more spending money.
The search for savings has aroused interest during the uncertain economic situation, as up to 70 percent of the loans brokered through Zmarta have been convertible loans. The corresponding figure in 2019 was 63 per cent, so the share of combined loans in total loans increased by about 10 per cent.
Finns borrowed less money for consumption
Zmarta’s data show that in 2020, there were about 25 percent fewer loans for consumption. Various tourism restrictions have had a negative effect on the travel volumes of Finns, as a result of which e.g. relatively fewer travel loans have been raised for foreign tourism and holidays than in summer 2019.
The share of car loans increased
Zmarta’s data also show that relatively more loans were tendered for the purchase of cars and other vehicles than a year earlier. This may be due to, for example, the growth of domestic tourism and the preference for private cars during the Corona era. The share of loans for cars and other vehicles increased by 16.6 per cent year-on-year.