TF Bank is an internet-based niche bank offering consumer banking services and e-commerce solutions through a proprietary IT platform with a high degree of automation. The platform is designed for scalability and adaptability to different products, countries, currencies and digital banking solutions. TF Bank prioritises organic growth under controlled conditions and expansion is taking place in carefully selected segments and markets. The business is conducted in Sweden, Finland, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, Germany and Austria through branch or cross-border banking.
The business is divided into three segments that all use the group’s IT platform and credit assessment models while benefiting from strong cross-selling opportunities: Consumer Lending with focus on unsecured consumer loans, Credit Cards with focus on offering credit cards and Ecommerce Solutions with digital payment solutions primarily to online retailers. The target group for all services is creditworthy individuals and the loan amounts are relatively small with short repayment terms. TF Bank also offers deposit products in several markets.
In the Consumer Lending segment, TF Bank offers unsecured consumer loans to creditworthy individuals in the Nordic region and the Baltics. The product offering can differ between the various markets and is adjusted according to the specific conditions in each country.
The Nordic markets for consumer loans are characterised by credit information that is easy to access, a high share of credit intermediators, and a well-functioning system for collection of unpaid debts.
Estonia is the country in the Baltics most similar to the Nordic markets, with high internet usage and easy access to public data. Latvia and Lithuania are fast-growing credit markets.
In the Credit Cards segment, TF Bank offers credit cards to creditworthy individuals in Germany and Norway. The business in Germany was started in the end of 2018, and the operations are conducted in-house. In offices in Berlin and Polish Szczecin, the local employees are working with marketing and customer service. Services like risk analysis, finance and IT are provided by central functions within the bank.
The offering in Norway has been part of the bank since the acquisition of the subsidiary BB Bank in July 2015. Since the start of 2020, the business is organised under TF Bank’s Norwegian branch.
In the Ecommerce Solutions segment, TF Bank offers digital payment solutions primarily within e-commerce to creditworthy individuals. The customers are mainly end-consumers who use the bank’s payment solutions when they make online purchases. The digital payment solutions are available in the Nordic region under the brand Avarda, and also in the Baltics and in Poland under the TF Bank brand.
The Avarda brand has over the past year experienced a commercial breakthrough in the Nordic markets. The market position has been strengthened with implementations of well-known retailers in various sectors.