Financsteenuseid

Financsteenuseid, or financial services, is a broad sector that encompasses institutions and activities that manage money, extend credit, insure against risk, facilitate payments, and help households and firms save and invest. The term is used in Estonian to describe activities that include banking, insurance, investment management, and related advisory services.

Core components include banking (deposits, loans, payments), insurance (life, property), asset management (funds, pension schemes, brokers), and financing and leasing. The sector also encompasses payment processors and fintech firms offering digital wallets, online lending, and robo-advisory services. Financial services address individuals, small and medium enterprises, and large corporations, and may involve advisory and fiduciary functions.

Regulation and supervision are carried out by authorities such as Finantsinspektsioon (Financial Supervisory Authority) and Eesti Pank (central bank) in Estonia, aligned with EU rules like PSD2, MiFID II, and AML directives. The aim is consumer protection, financial stability, market integrity, and prevention of money laundering, with data protection under GDPR.

Technology and trends are reshaping the sector through digitization, online and mobile banking, digital payments, open banking, and fintech innovations. Challenges include cybersecurity, fraud risk, financial inclusion, and balancing rapid innovation with prudent risk management.

Impact and scope: Financial services support economic activity by enabling saving, investment, credit, and risk management. They play a central role in capital formation and payments, while requiring ongoing regulation, resilience planning, and international cooperation to adapt to new technologies and standards.