History
A change to the Cooperatives Act in 2003 forced the S-Group to seek a replacement for its century-old savings fund operations. The new law prevented continuation in the previous form and set a maximum deposit limit of 3,000 euros for customer accounts. The S-Group considered both shutting down the savings funds and starting cooperation with a bank. Establishing its own bank emerged as the best option, as it enabled the continued offering of similar financial services and would support the S-Group’s other operations going forward.[7] In 2009, S‑Bank’s ownership structure changed when the S-Group’s regional cooperatives became 50% owners through a share issue. SOK, previously the sole owner of S‑Bank, retained 50% of the shares.
In May 2013, S‑Bank announced it would acquire the investment services company FIM. Initially, S‑Bank purchased 51% of the FIM Group’s shares and the remaining 49% under agreed terms in early 2016. The acquisition expanded S‑Bank’s product range to include mutual fund saving and asset management.[8]
In June 2013, it was announced that S‑Bank and LähiTapiola Bank[9] would establish a new S‑Bank in 2014, of which the S-Group would own 75% and the LähiTapiola Group 25%. Following the merger, the new S‑Bank also began offering mortgages and other secured loans.[10][11] On 1 May 2014, S‑Bank and LähiTapiola Bank merged into the new S‑Bank.[12] Due to overlaps and the merger, S‑Bank held statutory co‑operation negotiations, resulting in 38 redundancies.[13]
In May 2020, S‑Bank said it would continue investing in asset management and would acquire the asset management and real estate investment services of the insurance group Fennia.[14]
In June 2021, the bank announced that the LähiTapiola Group would sell its S‑Bank shares to SOK and the S-Group’s regional cooperatives. At the same time, Elo would also sell its shares to the S-Group. As a result of the transaction, the LähiTapiola funds managed by FIM would transfer to Seligson & Co, owned by LähiTapiola.[15] Thus, S‑Bank’s only remaining owners are SOK and the S-Group’s regional cooperatives.
In September 2021, S‑Bank announced it would begin rebranding. At the same time, S‑Bank said it would phase out the FIM brand and operate under the S‑Bank brand.[16]
In May 2023, S‑Bank announced it would acquire, through a business transfer, the Finnish personal banking as well as wealth management and investment services of Svenska Handelsbanken AB.[17] On 31 May 2023, Handelsbanken signed an agreement with S-Bank, Oma Savings Bank Plc (OmaSp) and Fennia Life Insurance Company Ltd. to sell the bank's Finnish retail banking, asset management and investment services businesses to S-Bank, its SME business to OmaSp and its life insurance business, including investment, pension and loan insurance, to Fennia. The parties expected the transaction to be completed during second half of 2024. After the closing S-Bank became the fourth largest bank in the retail housing loans and deposits in the Finnish market.[18]
