Wallester Alternatives for Virtual Banking in Finland

If you want to expand your existing business or start a new company in Finland, one of the questions to consider is what type of financial system to use. There are many options: well-established banks, fintech solutions, etc. But which ones are the best ones?

Over the past few years, fintech solutions, aka virtual banking, have become a pretty common option to use. And for many reasons. It is easy to set up, easy to use, scalable, and pretty flexible, even for companies that are not originally from Finland. In this article, we will discuss these options in detail, so stick around and let’s begin.

Regulatory framework

Virtual banking in Finland operates under a strict regulatory framework that helps to protect businesses and consumers while also implementing new technology into this field. The regulatory environment provides clear guidelines for electronic money institutions (EMIs) and payment service providers operating in the Finnish market.

PSD2 & EMD2 requirements in the EU

The Payment Services Directive 2 and Electronic Money Directive 2 set the basic rules for virtual banking across the entire European Union. These directives make sure that all virtual banking providers protect customer money and maintain strong security.

Under PSD2, virtual banking providers must implement the following safeguarding measures:

• Segregation of customer funds from the institution’s own funds.
• Clear audit trails for all transactions.
• Regular reporting to national competent authorities.
• Compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.

FIN-FSA (Finanssivalvonta) Authorization & Oversight

The Finnish Financial Supervisory Authority watches over payment service providers and electronic money institutions in Finland. In 2024, they focused particularly on mobile and online banking security, along with handling payment service problems and compensation processes.

Finnish businesses benefit from this regulatory oversight as it offers:

• Consumer protection through deposit guarantee schemes.
• Operational resilience requirements.
• Regular supervisory reviews and stress testing.
• Compliance with Finnish banking regulations.

Strong customer authentication (SCA) & 3-D secure

PSD2 requires all payment providers to use strong customer authentication for electronic payments and online account access. When your Finnish business uses virtual banking platforms, you’ll need to authenticate transactions using at least two different types of verification:

• Something you know (password, PIN).
• Something you are (biometric verification).
• Something you have (mobile device, token).

Local IBANs vs. Foreign IBANs

The choice between local Finnish IBANs and foreign IBANs can significantly affect how your business operates. Finnish IBANs are required for certain domestic transactions, preferred by Finnish suppliers and customers, necessary for tax authority payments, and essential for payroll processing.

Foreign IBANs from countries like Germany, Lithuania, or Belgium are often provided by pan-European virtual banks, but they may cause confusion with Finnish business partners, could delay domestic payments, and are generally better suited for international transactions.

GDPR & data protection

All virtual banking providers operating in Finland must follow the General Data Protection Regulation such as:

• Transparent data processing practices.
• Right to data portability.
• Secure data storage and transmission.
• Clear privacy policies and consent mechanisms.

Photo by Jim Chen on Unsplash

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Key selection criteria for SMBs

When choosing a virtual banking provider, Finnish small and medium businesses need to focus on factors that directly affect how smoothly they can run their operations and manage their finances.

Account opening speed & KYC

Modern virtual banking platforms usually get you up and running much faster than traditional banks. Most complete their know-your-customer checks within 24 to 48 hours using a digital-first approach. You’ll typically need standard business registration documents and beneficial ownership information. The verification process usually involves digital identity checks, video calls, and automated compliance reviews.

Currency support & FX rates

Many Finnish businesses need to work with different currencies. You will need:

• EUR as base currency. Essential for domestic operations.
• Common trading currencies. USD, GBP, SEK, NOK.
• Competitive FX rates. Typically 0.5-2% above interbank rates.
• Real-time exchange. Important for international transactions.

Virtual card & payment controls

Advanced expense management features can save you significant time and money. The best providers offer:

• Real-time spending controls. Set limits by merchant category, amount, or time period.
• Multiple virtual cards. Issue cards for different departments or purposes.
• Instant card freeze/unfreeze. Advanced security for lost or compromised cards.
• Detailed transaction data. Rich merchant information and receipt capture.

API & ERP/Accounting integrations

Your virtual banking provider should integrate seamlessly with the software you already use. Look for:

• RESTful APIs. For custom integrations and automated workflows.
• Accounting software integration. Direct connections to platforms like Visma, Procountor, or Xero.
• Bank feed connectivity. Automatic transaction import for bookkeeping.
• Webhook support. Real-time transaction notifications.

Pricing transparency

Clear pricing helps you budget effectively. Expect the following fees:

• Monthly account fees. Typically €5-50 per month.
• Transaction fees. €0.20-1.50 per SEPA transfer.
• Card fees. €2-10 per virtual card per month.
• FX fees. 0.5-2% above mid-market rates.

Local support

Finnish businesses benefit greatly from Finnish-speaking customer support for complex queries, support available during Finnish business hours, and regional expertise that understands Finnish business practices and regulations.

Challenger banks & EMIs available in Finland

The Finnish virtual banking market has several good alternatives to Wallester. Each provider has different strengths and targets different types of businesses. All of these companies operate under proper financial regulations and offer complete business banking services.

Wallester

Wallester is an Estonian Electronic Money Institution that provides virtual banking services across Europe, including Finland. The platform focuses on API-first banking solutions and virtual card issuance for businesses of all sizes.

How it works

Businesses can open accounts digitally, receive virtual or physical cards, and manage payments through a web dashboard or API integrations.

Key features

• Estonian EMI license with EU passporting rights.
• Virtual and physical card issuance.
• Multi-currency accounts (EUR, USD, GBP).
• API-first platform for developers.
• Real-time transaction monitoring.

Spendbase

Spendbase is a comprehensive spending management platform that combines virtual banking with advanced expense analytics and software spending optimization. They target growing businesses that need sophisticated financial controls and insights.

How it works

Companies connect their existing bank accounts and credit cards to Spendbase to see all business spending, while also creating virtual cards for controlled expenses.

Key features

• Advanced spend analytics and reporting.
• Software subscription management.
• Multi-level approval workflows.
• Integration with major accounting platforms.
• Real-time budget tracking.
• Automated expense categorization.

Pleo

Pleo is a Danish fintech company that focuses on business expense management with smart company cards and automated reporting features. They benefit from user-friendly interfaces and mobile-first experiences.

How it works

Employees get Pleo cards for business expenses, automatically capture receipts through the mobile app, and expenses are categorized and reported in real-time.

Key features

• Smart corporate cards and intuitive software that streamlines expense tracking and categorisation.
• Automated expense reporting and receipt capture.
• Integration with popular accounting software.
• Multi-currency support.
• Mobile-first user experience.
• Real-time spending notifications.

Wise Business

Wise Business (formerly TransferWise) is a global financial technology company that specializes in international money transfers and multi-currency business banking. They’re particularly strong for businesses with international operations.

How it works

Businesses can hold money in multiple currencies, make international transfers at real exchange rates, and receive payments through local account details in various countries.

Key features

• Real exchange rates with transparent fees.
• Multi-currency accounts (40+ currencies).
• Global payment capabilities.
• Batch payment processing.
• Strong API capabilities.
• Local account details in multiple countries.

Revolut Business

Revolut Business is a digital business banking platform that offers comprehensive financial services, including multi-currency accounts, expense management, and cryptocurrency support. They target businesses with diverse financial needs.

How it works

Businesses can manage multiple currencies, issue team cards with spending controls, and access advanced analytics through a dashboard.

Key features

• Multi-currency accounts and cards.
• Expense management tools.
• Team spending controls.
• Integration with accounting platforms.
• Cryptocurrency support.
• Advanced analytics and reporting.

Intergiro

Intergiro is a Swedish financial technology company that provides Banking-as-a-Service solutions and direct business banking services. They’re notable for offering Finnish bank account numbers and strong compliance frameworks.

How it works

Businesses can access banking services through Intergiro’s platform, including account opening, payment processing, and card issuance, with options for white-label solutions.

Key features

• Swedish banking license.
• Finnish IBAN availability.
• White-label banking solutions.
• Strong compliance framework.
• API-first architecture.
• SEPA and international payments.

Side-by-side comparison table

The following comparison provides a comprehensive overview of key features, pricing, and capabilities across the main virtual banking alternatives available to Finnish businesses.

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When to choose which option

Picking the right virtual banking provider depends on what your business actually needs, how you operate, and your growth plans. Each platform is good at different things and works better for different situations.

Need Finnish IBAN for payroll, tax, or local vendors

Best choice: Intergiro

Finnish bank account numbers are essential if you need to process payroll through Finnish systems, make tax authority payments and receive refunds, work with domestic suppliers who prefer local accounts, or build customer trust and familiarity with local banking details.

Want deep expense controls with insights

Best choices: Spendbase or Pleo

These platforms are excellent at providing real-time spending analytics, automatically categorizing expenses, setting up multi-level approval workflows, connecting with accounting systems, and monitoring budgets with alerts when limits are reached.

Need to issue cards at scale or via API

Best choices: Wallester or Intergiro

These work best for businesses that need high-volume card creation, programmatic card management through APIs, custom spending controls, integration with existing business systems, or white-label solutions for their own customers.

Global transfers & FX efficiency

Best choices: Wise Business or Revolut Business

These are ideal for companies that frequently make international payments, operate with multiple currencies, need cost-effective foreign exchange rates, work with global supplier networks, or pay international team members.

Quick setup for small Finnish teams

Best choices: Pleo or Revolut Business

These are perfect when you need rapid deployment, simple expense management for small teams, straightforward fee structures, user-friendly interfaces, and mobile-first operations that work well on phones and tablets.

Tips for smooth implementation

Setting up virtual banking successfully takes some planning and attention to detail. These practical tips will help you make the switch without problems and get the most out of your chosen platform.

Piloting with one entity or department

Make your virtual banking transition smart and strategic. Choose a low-risk department like marketing or operations instead of finance to start. Set clear goals for what makes the pilot successful. Keep the initial scope narrow by focusing on expense management or specific types of payments. Get feedback regularly with weekly check-ins during the first month.

Integrating with your accounting software

Make sure your financial operations work smoothly. Test the integration thoroughly to check that data is accurate and complete. Map your chart of accounts to ensure proper categorization from day one. Set up automated reconciliation to reduce manual bookkeeping work. Train your accounting staff so they understand the new workflows.

Configuring spend policies & alerts

Create proper financial controls for your business. Define spending limits that are appropriate for each role and department. Create merchant restrictions to block unnecessary spending categories. Set up real-time alerts to monitor unusual spending patterns. Establish approval workflows that require approval for large expenses.

Training staff on SCA & API usage

Prepare your team for success with the new system:

• Conduct SCA training. Make sure all users understand authentication requirements.
• Provide API documentation. For technical teams integrating systems.
• Create user guides. Step-by-step instructions for common tasks.
• Establish support channels. Clear escalation paths for issues.

Maintaining a backup local bank account

Make sure your business can continue operating if something goes wrong. Keep your traditional account active to maintain relationships with local banks. Additionally, diversify your payment methods so you don’t rely solely on one provider. Don’t forget to plan for emergencies to ensure you can access funds during technical issues. Finally, regularly test your backup systems to verify they work when needed.

Expanding an EU business into Finland

If you’re an international business looking to expand into Finland, you need to understand the local rules and practical things to consider when setting up virtual banking relationships. Here are some you should consider.

KYC requirements

First, understand Finnish KYC standards:

• Business registration. Valid Finnish business registration (Y-tunnus).
• Beneficial ownership. Documentation of ultimate beneficial owners.
• Business purpose. Clear explanation of business activities.
• Financial projections. Expected transaction volumes and patterns.

Tax compliance

Finnish tax obligations for virtual banking:

• VAT registration. Required for most business activities.
• Corporate tax. Understanding Finnish corporate tax rates (20%).
• Withholding tax. Applicable to certain international payments.
• Reporting requirements. Monthly and annual tax filings.

Language considerations

Communication and documentation:

• Finnish language support. Essential for complex queries.
• Document translation. It may be required for certain procedures.
• Cultural understanding. Finnish business practices and expectations.
• Local business hours. Alignment with Finnish working patterns.

SEPA access

Know how European payments work will help your operations:

• SEPA credit transfers. Standard for EUR transactions.
• SEPA instant payments. Real-time EUR transfers.
• SEPA direct debits. Automated recurring payments.
• Cross-border efficiency. Seamless EU-wide transactions.

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Takeaway

The Finnish virtual banking landscape offers a lot of good alternatives to Wallester, and each has unique strengths and capabilities. The choice of provider should align with your specific business needs, operational requirements, and growth objectives.

1. Make sure your provider follows all the rules. Make sure you have proper licensing and oversight from Finnish and EU authorities.
2. Think about whether you need Finnish bank account numbers. Consider how important Finnish IBANs are for your local operations and customer relationships.
3. Match features to what you actually need. Choose platform capabilities that align with your business requirements rather than just picking the most feature-rich option.
4. Understand exactly what you’ll pay. Get clarity on all fees and charges upfront to avoid surprises later.
5. Check if it works with your existing systems. Compatibility is essential for your current accounting software and business processes to work well with new tools.

Success in implementing virtual banking depends on careful planning, proper integration with existing systems, and choosing the right provider for your specific business needs. With the right approach, Finnish SMBs can significantly improve their financial operations while reducing costs and increasing efficiency.