Responsible lending

Responsible lending activities are business critical and contribute to low loan losses for TF Bank and a well-functioning economy in general.

Growth in a controlled manner

TF Bank prioritises organic growth in a controlled manner. With well-developed responsible credit assessment processes and relatively low loan amounts and short repayment terms, calculated risks are taken that can be quickly adjusted when the conditions on macro level change. It is inevitable that loan losses in absolute terms increase as the loan portfolio grows. However, our goal is to maintain the net loan loss ratio at a stable level annually. To manage this growth, the Bank regularly reviews and adjusts its risk management strategies, ensuring that it remains agile and responsive to changes in both the macroeconomic environment and customer needs.

TF Bank also places significant emphasis on maintaining a strong capital base and liquidity position to absorb potential macroeconomic crises and continue offering responsible lending solutions to customers, during periods of economic uncertainty.

Customer protection

To become a customer of TF Bank, the applicant must have no payment defaults and must demonstrate financial margins, which is assessed through a calculation of residual income. During the credit assessment process, we also investigate whether taking a loan with us could lead to an unsustainable level of indebtedness for the customer. Additionally, TF Bank is characterised by relatively low loan amounts and short repayment terms, which increases the likelihood that our customers will be able to repay their loans, even if their financial circumstances change.

To further protect our customers against financial changes, we offer insurance options in the Nordics and Germany to cover payment suspension in the event of unemployment or illness, as well as life insurance.

TF Bank is also committed to offering transparent and easily understandable loan terms, helping customers make informed decisions before committing to a loan. This transparency is reinforced by accessible customer service and clear communication at every step of the borrowing process.

Should the customers encounter problems repaying their loan, we are dedicated to helping the customers. TF Bank has specially trained employees who proactively contact customers at an early stage in the event of a late payment to jointly agree on a solution and, when possible, provide advice and support. The Bank’s customer support team is trained to offer flexible repayment solutions and collaborate with customers to minimise further financial strain.

Financial inclusion

Responsible lending is a necessary and important financial product category and function in a well-functioning economy. By taking a loan, consumers can spread their expenses over time. TF Bank’s products are designed with easy-to-understand terms and high availability, with the ambition of meeting the needs of creditworthy individuals who require a loan. Our lending therefore combines automated processes with manual processing. Our automated credit assessment process allows us to provide customers with efficient credit management while also ensuring an accurate credit assessment.

How the credit assessment works

In 2024, we processed around 11.4 million loan applications (12.3), of which above half were denied credit as a result of our robust credit assessment. In each case, we ensure accurate credit assessment through our established credit assessment process that is continuously being tested, developed and improved. Our long experience in the industry, our various geographical markets and different economic conditions, have given us the know-how and data to be able to develop our models.

At TF Bank, we believe in responsible lending and always prioritise our customers’ financial well-being. Every credit assessment is conducted with care, following good lending practices and ensuring that loans are suited to each individual’s financial situation. Thanks to our knowledgeable local staff and expertise, we provide a smooth and transparent process by verifying information directly with our customers. When necessary, we may request supporting documents such as pay slips, tax returns, and bank account statements. Depending on local market practices, we use all or some of these sources to ensure accurate assessments. Our goal is to ensure that every customer has the financial capacity to manage their loan comfortably, fostering long-term financial stability and trust.