As already mentioned in one of our articles on credit cards in Norway, banking is a critical sector in the country’s economy. Unlike many countries where banks are seen just as institutions for borrowing and making savings, Norwegian banks help the government in many ways.
A robust banking system in Norway is the government’s way of tracking tax evasion, tracing money laundering, financing high cost investments, offering large sums of money for mortgages just to mention but a few.
Anyone who has stayed in Norway will tell you that apart from focusing on getting accommodation, your other important thing in the to do list is opening a bank account.
No employer in Norway will accept to pay you in cash or other means which cannot be verified. All payments from the government and employers in Norway are made through the banks.
Payments at points of sale are also highly digitised and involve use of bank cards to check out goods instead of cash. Considering the inconveniences that not having a bank account in Norway will cause you as an expatriate there, it is advisable to prioritise opening a bank account.
There are multiple banks in Norway with different assortment of customer packages for you to choose from.
The role of Banks in Norway
Banks in Norway have over time become one stop financial institutions that provide services ranging from asset financing, low interest loans, mortgage, financing advice, overseas banking, investment advising and many more.
Banks in Noway, just as in the case of any other country help the government to deal with illegal financial transactions such as money laundering or illegal businesses.
If you are someone who is investment oriented, Norwegian banks are your trusted partners for all forms of financial solutions. As opposed to the traditional banking system where the lender did not take an active role in helping the borrower get the most value from the credit, banks in Norway go above board to do it.
The Norwegian banks understand the struggle that borrowers may undergo in repaying their debts especially if it is invested poorly. As a result, you just need to be truthful with the commercial banks in Norway and they will offer their expert advice on how much to borrow based on your income levels, what investments may favour you, which repayment period suits your situation et cetera.
At the core of Norwegian banking system is a persuasion to offer safe financial solutions that meet the needs of the private persons in Norway, small and large businesses as well as international capital markets.
Today, most banks in Norway including Bank Norwegian offer mobile phone loans to borrowers to meet immediate low cost needs such as buying food, repairing a car or refurbishing a house.
Types of banks in Norway
The name bank is so general that it may conceal just so much about how the banking system in Norway is structured as well as which place you need to run to when in what need.
Banks in Norway are categorised as commercial banks/ business banks, savings banks, and foreign banks. Although some big banks have amalgamated these services under their portfolio, they are offered on a case by case basis by relevant departments.
Commercial banks in Norway
The commercial banks are also called Business banks. As the name suggests, the forte of commercial banks is offering financial services to corporations and business entities. The primary focus of such banks is to offer banking services as well as acting as intermediaries for large businesses as well as corporations.
In response to the customer expectations for services offered under one roof, commercial banks in Norway today also serve private customers and open savings accounts, process checkable deposits and grant loans to every eligible person.
Notwithstanding the transformation which the commercial banks have undergone to match up to the market needs and competition, they remain highly committed to dealing with commercial entities, businesses and corporations. Storebrand Bank in Norway is one such oldest commercial banks.
Savings banks in Norway
As the name tells it, savings banks are financial services providers that give a wide range of help to private clients. They are your everyday banks where you walk in, open a bank account or perform any quick transactions.
The banks deal with low volume deposits and withdrawals which do not require maintenance of a complicated client banking portfolio. They offer various sweeteners to attract customers towards their services because their low volume of transactions require more clients so that they break even.
Although the nature of services and offers that most of these banks have are highly identical, two or three things may differ. As a result, always take your time to check out what makes a savings bank good for you. Do not rush into opening an account without first checking what makes it an outstanding partner.
Foreign banks in Norway
Today the world has grown into just a small bubble which many would refer to as a global village. For sure it is a village and banks are not left behind. The foreign banks in Norway deal with cross border investments and transfers.
Understandably, business entities or individuals in Norway sometimes want to transfer part of their investments elsewhere or expatriate their capital. It is such foreign banks that come in handy. Nonetheless, the banks are closely supervised by the Norwegian authorities.
As an expatriate in Norway, you are highly advised to choose a bank that offers all the services that you may require. Having a bank with comprehensive services make it easy for you to consolidate your needs and streamline financial issues.
Check out some of the best banks in Norway including but not limited to DnB NOR, Fokus bank, Nordea and Postbanken.
Banking hours in Norway
In case you come from a country where people rely heavily on one on one banking services then it may shock you that this is rarely the case in Norway. Some banks open from 9 O’clock and close at 3 O’clock. You need to check keenly which schedules your bank has but it keep changing.
As much as the bank opening hours are limited and the physical contact with the service providers rare, banks in Norway have embraced digitalization to fix several of the customer needs. Internet banking in Norway allows you to access funds from your bank account without visiting the bank. The ATM machines also allow you to deposit and withdraw money whenever necessary.
The only moments when you may need direct help from the service providers is to open a bank account, get a large scale financial facility such as a mortgage or any other major issue apart from withdrawal and deposits of funds.
