Tilinhoitus

Tilinhoitus (from Finnish tili = 'account', hoitus = 'care/management') is a term used in Finnish finance to describe the administration and safeguarding of customer funds and accounts by financial institutions. It covers the recording of client transactions, posting to client accounts, reconciliation, and the ongoing maintenance of account balances. Tilinhoitus often involves keeping client funds in dedicated accounts separate from the institution's own funds and under appropriate custodial arrangements to protect clients and meet regulatory requirements.

In practice, tilinhoitus is essential to payments processing, settlement of trades, and the delivery-versus-payment workflows where accuracy and audit trails are critical. Banks, brokerages, payment service providers, and other financial intermediaries perform tilinhoitus as part of back-office operations, often supported by specialized software and controls for reconciliation, cash management, and reporting to clients.

Regulatory context: Tilinhoitus is governed by financial regulations in Finland and the EU that require segregation of client assets, reliable record-keeping, risk management, and regular auditing. The exact responsibilities, reporting standards, and levels of protection may vary by institution and service type.

Notes: The term is primarily used in Finnish-speaking financial contexts; closely related terms include tilinhoito or account administration. The concept is distinct from the institution's own balance sheet management and from general accounting of internal operations.