As banking moves further online, some Estonians are still left behind
As Estonia's banks shrink branch networks in favor of online services, many residents, especially outside major cities, still struggle to manage their money digitally.
Outside larger urban areas, SEB and Swedbank have traditionally been the nearest banks for many. In recent years, both have reduced their number of branches and cut hours. Still, some people need in-person help, even if they normally manage their finances online.
Põlva resident Rinaldo Männiste said he made the trek to Võru to go to the bank.
"I definitely need to ask about a thing or two at the bank, but since there's no Swedbank branch in Põlva, I came out of my way to Võru today," Männiste said. "But it only opens at 1 p.m., so I couldn't get in yet."
Banks say the closures are mainly due to low customer traffic — even if it means losing its presence in another location.
"If branch visits and the transactions carried out there drop very low, then unfortunately there's no other choice but to close that branch," explained Swedbank communications area manager Martin Kõrv.
Even where branches remain, walk-ins are often discouraged. Appointments must be booked online, leaving some rural residents unsure how to access services.
Viitina Library librarian Aive Leppik described her recent experience going to close an account in person.
"New to me was that right by the door, there was a machine asking whether I had made an appointment, or something," Leppik recalled. Luckily, the bank was empty, so she could immediately ask a customer service representative for help.
SEB and Swedbank note that customers are still served on a walk-in basis, adding that appointments can also be made by phone. But older residents, especially those in rural areas, may not know this.
Swedbank: Online banking has been around for 30 years
Viitina resident Kairi Kimmel recently went to the bank with her daughter's help. "I kind of terrorize my daughter to do my [bank] transfers for me;" she admitted.
For many, relying on adult children or other younger relatives for help navigating online services is common. For those without family support, Swedbank stressed taking personal responsibility, noting that online banking has been around in Estonia for 30 years.
Kõrv said banks have offered training and seminars for decades, helping customers adapt to digital services.
In other words, banks assume that clients who were once in their 30s and 40s and are now in their 60s and 70s have kept up with digital advances — and the numbers show that most have.
A Statistics Estonia survey showed that as of last year, 95 percent of households have internet access, and 92 percent of internet users do their banking online, including many older adults.
But not everyone can or wants to go fully digital.
In Viitina, Leppik has worked with many rural residents who don't have computers or struggle with technology.
"Many have smartphones," she noted. "And I encourage them to grab their ID cards and PIN codes and come in and I'll teach them. But there's all kinds of people, and what they want differs."
Leppik highlighted that sometimes it isn't a matter of not wanting to keep up with changes; confidence and physical ability also play a role.
Area resident Reet does most of her banking digitally, but sometimes she still wants to visit a bank in person to be sure.
"I make the effort, and I manage; most of my bills are automated," she explained. "But my hands aren't so steady anymore, and I'm afraid of messing up."
Estonia's Coop Pank aims to remain a nearby presence, recognizing that financial issues are sensitive and digital literacy varies.
"The use of digital channels is certainly growing, but we can't say fewer customers are visiting our branches," said Karel Perve, head of retail banking at Coop Pank. "Financial matters are very complex for many."
Old-fashioned alternatives
For those far from a branch, alternatives include Omniva, which helps people pay bills in person or through home delivery.
Mail carrier Siret Sild said that although use of the service has declined as more people continue to go digital, Omniva handles roughly 3,000 transactions a month, with one person usually doing several transactions at once this way.
While customers can pay by card or cash, however, this service comes at a steep price, with a €5.50 charge per bill.
Other residents, meanwhile, don't even have bank accounts at all.
"I don't have a single banking document," one woman said, speaking to Leppik by phone. "Don't even tell me about the internet; I have a regular phone. I don't understand anything about smartphones. Nada."
The woman pays her bills with the librarian's help. "She brings me the money and bills, and I pay them, but I pay them from my own bank account," Leppik explained.
The arrangement works for both of them, because the bills get paid, and the cash saves Leppik a trip to the ATM.
Social workers also use similar methods to assist older residents who remain vulnerable in the digital world, playing a key role in helping them manage their finances online safely.
Whether such help is fully regulated, however, is a question state authorities ultimately left up to local governments.
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Editor: Aleksander Krjukov, Aili Vahtla
