Finland’s Tax Administration has warned that digital-only banks are becoming a preferred tool for some participants in the grey economy and organised financial crime, as the number of Finnish customers using foreign-based providers continues to rise.
A new report from the agency says most customers use neopanks for legitimate purposes, but weaknesses in customer verification and the international nature of the sector have created opportunities for abuse.
The findings come as the use of foreign neopanks has expanded rapidly in Finland. According to the Tax Administration, the number of Finnish customers using such services increased from around 36,000 in 2020 to more than 200,000 in 2024.
Neopanks operate without physical branch networks and provide banking services entirely through digital platforms. Many of the institutions used by Finnish customers are based outside Finland, with Lithuania emerging as a major centre for the sector during the past decade.
The Tax Administration said its analysis of customers at one of the most widely used neopanks found links to grey economy activities among more than 10 per cent of Finnish account holders examined in an initial sample.
