The deposits of the Estonian capital-based Holm Bank, which will soon be celebrating its fourth anniversary as a bank, exceeded the 100 million euro mark. According to Kaspar Kalvet, the bank’s CEO, the company will continue to offer attractive interest rates on deposits in order to encourage, above all, domestic customers to deposit their savings in Holm.
The bank’s CEO points out that the increase in the volume of deposits has been propelled by people looking to protect their savings from high inflation, but also by the significantly better interest rate compared to the market average.
‘We have accelerated the deposit-taking because, on the one hand, our customers’ demand for loans has significantly increased over the last months and, on the other, our attractive interest rates on deposits have appealed to customers,’ claimed Kalvet. ‘Compared to the beginning of the year, the total volume of loans and deposits issued by Holm has increased by more than 50%. The growth stems from the activity of our loyal long-term customers as well as new private customers who have noticed the services and offers of Holm. There has also been a steady growth in commercial loans,’ noted Kalvet, explaining the reasons behind the increased demand for money.
He added that several new loan products from Holm have also been very well received. ‘The mortgage loan launched at the beginning of the year and the home loan launched in August have significantly affected the volume of our loan portfolio,’ he stated.
Holm has raised nearly 70% of the deposits from abroad – 65% from German and 5% from Austrian depositors. ‘The fact that experienced depositors of such conservative markets are so actively engaging with our offers is a sign of high confidence. At the same time, our goal is first and foremost to be the preferred deposit partner of our domestic customers, which is why we have always offered them one of the best interest rates in the Estonian market and continue to do so today. Currently, the assets of domestic depositories account for 30% of our portfolio and we are working hard to increase it,’ Kalvet expressed.
According to the CEO of Holm, simply offering a favourable interest rate is not sufficient to achieve this goal – it takes constant effort to change the depositing habits of Estonian customers.
‘German customers are constantly looking for ways to grow even the smallest of savings, and a significant number of them have now come to Holm Bank. However, many Estonians believe that the safest place to keep money is their bank account, although the interest paid on it is nearly non-existent. We encourage all savers to explore all the options on the market to protect their money from inflation. Interest rates have increased a great deal recently and small banks in particular often offer very good interest rates on deposits. Unlike in savings and loan associations, the savings of customers in banks are guaranteed in the amount of up to 100,000 euros by the Guarantee Fund,’ said Kalvet.
Holm Bank AS is an Estonian capital-based bank licensed by the European Central Bank. Holm Bank is the owner of the trademarks Liisi and Holm. The bank’s services include fixed-term deposits, physical and virtual credit cards, private and business financing and hire purchase. The bank also offers fixed-term deposits in Germany and Austria via the Raisin platform and is the owner of the company Holm Bank Latvia SIA, a financial services provider in Latvia.
Posti 30, 90504 Haapsalu