Coop Pank launches operations

Today, on 2 October, operations are launched by Coop Pank, the first in Estonia to combine banking and retail trade and bring daily banking services to Coop shops across Estonia.

Combining a bank with retail trade will provide clients with the option of using banking services where they need it most. For example, you can open a bank account or apply for a credit card or a small loan at the banking points at Coop shops. The Coop bank card provides discounts at Coop shops, and from spring next year, cash may be withdrawn from the cash registers of Coop shops.

Coop Pank was created on the basis of the existing AS Eesti Krediidipank. From 2 October, the new official name of the bank is Coop Pank AS. Also, all of Krediidipank’s subsidiaries will undergo a name change.

The majority shareholder in Coop Pank is Coop Eesti, Estonia’s largest group engaged in the sales of food and convenience goods, which consists of 19 regional consumer co-operatives and which has 350 shops and nearly 600 000 regular clients.

According to Jaanus Vihand, Chairman of the Supervisory Board of Coop Pank, the network of Coop shops enables the new bank to enter the market in Estonia with a novel business strategy. “The objective of Coop is to create a strong bank based on local capital, which, for the first time on the Estonian market, is taking advantage of synergy between banking and retail trade. We are bringing daily banking service close to people so that they no longer have to travel tens of kilometres in order to complete basic banking operations,” Vihand observed.

Margus Rink, Chairman of the Management Board of Coop Pank, said that the bank is entering the market gradually: “A make-over consistent with the Coop Pank brand has been given to 14 branches across Estonia, the first ones of which have moved into Coop shops. The new Internet bank became operational. In addition, the Coop bank card serves as the client card for Coop shops, providing discounts on purchases and accumulating bonus points. Coop Pank’s new payment settlement plans Boulder and Erratic Boulder encompass, in a single monthly fee, various services and enable cash withdrawals without any additional fees from the automated teller machines of all of Estonia’s banks.”

Before October ends, Coop shops will launch the first banking points where you can get daily banking services: open an account, set up a bank card or apply for a small loan. At the end of October, the new mobile bank will become operational. From spring next year, cash may be withdrawn using the Coop bank card from the cash registers of all Coop shops across Estonia.

For the existing clients and partners of Krediidipank, the switch in the trade mark and business name will entail no changes: all the existing agreements will continue to be valid as previously; furthermore, bank cards with Krediidipank’s logo will continue to be valid; however, Coop Pank will allow these to be replaced with new ones for free if desired.

Estonia’s only co-operative retail group, Coop Eesti, whose sales network includes more than 350 shops, purchased a majority holding in AS Eesti Krediidipank, previously owned by the bank of Moscow, in January this year. Coop set the objective of creating out of Krediidipank a strong Coop Pank based on Estonian capital, which takes advantage of the synergy generated between retail and banking and brings daily banking services closer to people’s homes. Consisting of 19 co-operatives, Coop Eesti is the market leader in food and convenience goods with a market share of 21% and a turnover of 508.3 million euros in 2016. Coop Eesti has 80 000 private shareholders and approximately 600 000 regular clients.