OP's main business segments


OP's main business segments

OP has three main business segments: Banking, Non-life Insurance and Wealth Management. We provide our customers with the most extensive and diversified range of banking, investment and insurance services and the best loyalty benefits in the country.

Banking is OP's biggest business segment, and OP is Finland's leading provider of home and corporate loans. For private customers, OP's Banking services and products include daily banking and payment services, loans, savings and investments. We provide corporate customers with financing, payment transaction and cash management services, investment services, and expert services related to business development.

OP is also Finland’s leading non-life insurer. We provide our private customers and corporate and institutional customers with a diverse range of comprehensive insurance solutions. Through our new type of service concepts, digital solutions, high-quality network of partners and process efficiency, we are continuously enhancing our claims services’ customer experience while creating competitive advantage. Non-life Insurance consists of OP Insurance Ltd, A-Insurance Ltd and Eurooppalainen Insurance Company Ltd.

OP’s Wealth Management has Finland’s most extensive service network for saving and investing. We provide the best digital wealth management services for the saving and investing needs of private and corporate clients with a client-driven approach, and a unique Private Banking experience. We provide a diverse range of services and products in unit-linked insurance, mutual funds, and discretionary and advisory mandates.

Towards customer-focused service concepts

OP’s strategic aim is to gradually change from a plain financial services provider to a diversified services company of the digital era. Increasing customer expectations and change in customer behaviour encourage us to create comprehensive solutions beyond industry boundaries. We will gradually shift the development focus from individual products towards customer-driven service concepts, which thus far number four: Housing-related Services, Mobility Services, Health and Wellbeing, and Management of Finances. Among the above service concepts involving areas new to OP, the most advanced are Health and Wellbeing, and Mobility Services.

OP took its first step in branching out into health and wellbeing services already in 2013 when the first Pohjola Hospital was established in Helsinki. By now, OP also has hospitals in Tampere, Oulu and Kuopio. The hospital network will be completed in May 2018 when the Turku hospital opens its doors. All Pohjola Hospitals provide basic healthcare and special healthcare services, examinations, surgery and rehabilitation on an extensive basis. The range of specialties has been gradually broadened and, in the next phase, OP will establish a nationwide network of medical centres and grow its occupational healthcare business.

OP Kulku, OP’s first mobility service launched in 2016, offers electric cars as a service. In 2017, we also introduced DriveNow car sharing charged by the minute in Helsinki and OP Flexible Car providing rental cars for a month or a longer period offered nationwide. We also announced that we would build with Fortum almost 100 charging stations for electric cars in Finland. Continuing the active development of Mobility Services, we are determined to introduce new concepts revolutionising the mobility field in Finland.




Product and service development


Product and service development at OP Financial Group

OP’s product and service development aims to create products and services which are innovative, user-friendly and relevant to customers and which offer a smooth customer experience.

Despite the rapid digitisation of services, OP is also further developing face-to-face encounters to better meet future needs. For private customers, OP’s development seeks to pay heed to the needs of customers of different ages living in different areas and to ensure that products are understandable in particular. For corporate customers, the development of products and services aims at promoting a company’s success, for example, by improving operational flexibility and productivity.

Major investments in development

Intense and fast digital disruption in the financial sector is continuously attracting new market entrants and speeding up product and service development. Succeeding in the changing operating environment necessitates offering the best possible customer experience irrespective of time, place and service channel. In OP’s view, the winning customer experience will be increasingly founded on a collaboration effort between humans and technology – personalised service will be enriched through the introduction of data, analytics and artificial intelligence.

Following its strategy, OP has increased its development expenditure to some 400 million euros. During the strategy period, the development expenditure will total up to 2 billion euros. These development investments will be allocated to the modernisation of basic financial services and the creation of new product and service packages.

OP engages in product and service development based on the agile development model. Agile development at OP means an iterative development model that gathers ongoing customer feedback. OP has stepwise switched to the agile development model, which has required the creation of new types of operating models and roles and employee training on a long-term basis. The model is characterised by the launch of products and services with limited functionality (beta) and their improvement based on testing and customer feedback.



Enhanced customer focus through service design pioneership

Customer needs form the bedrock of all development at OP and, thus, customer engagement is a natural and important part of product and service development. For several years now, OP has enhanced customer focus in product and service development by means of service design methods. Today OP can be counted among the pioneering service design companies in Finland, and its unit of over 45 service designers is comparable with a design agency in terms of expertise and size.

Service design means the innovation, development and design of services using design methodologies – in cooperation with customers. Service design starts from understanding user needs and troubles identified in user experience and finishes with the tangible implementation of user experience, with a view to creating products and services that are simpler, easier to use and better meeting customer needs and thereby improving customer experience.

Our customers have the opportunity to participate in the development of OP's products and services by various means. OP Helsinki's Vallila branch acts as OP's test laboratory for new operating models and tools. At the branch, customers can test and explore existing and prospective products and services by various means: touchscreens, videos, animation and demos.

On the web, customers may openly participate in product development on the OP Lab website, where the digital services of the future are demonstrated, customer feedback is collected, and services piloted jointly with the customers. In addition to the OP Lab, customers can register for the Paja customer community on the web. On Paja, quick surveys are implemented, ideas assessed and feedback collected both online and at various events.

Service designers also annually hold a significant number of face-to-face interviews with customers across Finland and generate ideas with customers in various workshops.

Read more on the OP Lab site.

Redesign of OP eServices together with customers

OP's redesigned online service and online bank op.fi is one example of applying the method of agile development and customer engagement to product and service development. The beta version of the new service was opened for all customers in the autumn of 2016 and, at the moment, the new op.fi provides both private and corporate customers with banking and insurance services.

From the very beginning, customers of different ages have contributed to the planning and development of the new service through, for example, interviews, group discussions and usability tests as well as by testing the service. We are still collecting customer feedback to guide the development.

Read more about products and services launched in 2017:

Management of Finances

Mobility Services

Housing-related Services


Health and Wellbeing








OP is Finland's leading provider of home and corporate loans. OP's market share of home loans stood at 39.3% at the end of 2017. The market share of corporate loans rose to 38.9% as the corporate loan portfolio grew strongly.

Banking is OP's largest business segment providing customers with an extensive and comprehensive range of products and services. For private customers, OP's Banking services and products include daily banking and payment services, loans, savings, investments and housing-related services – not to mention the versatile benefits offered to our owner-customers. We seek to secure prosperity for our private customers and to promote their personal financial management and success. We want to offer our customers comprehensive banking services that are flexible and accommodating their various life situations.

We provide corporate customers with financing, payment transaction and cash management services, investment services, and expert services related to business development. OP's corporate customers range from SMEs to large corporations and institutions. We aim for long-term and total customer relationships across the board. When we know customers well and are in close interaction with them, we can customise solutions for them.

As a corporate partner, we wish to promote the success and internationalisation of Finnish business. International service capabilities being high on the agenda, we establish, for example, well-thought-out international partnerships based on the needs of our customers. In late 2017, we opened a representative office in Shanghai, China in a bid to support Finnish companies' growth and internationalisation in the Asian market.

Read more about Banking products and services at op.fi.

Based on its strategy, OP is making heavy investments in the development of digital Banking services. Our aim is to create the best financial planning and management services in the market in terms of user experience. As part of its drive to become a diversified services company, OP is developing new digital service for living too. OP’s vision is to provide a comprehensive housing-related ecosystem that will serve customers in housing-related needs from buying and selling a home to renovation and daily life. In the summer of 2017, we took the first step towards this ecosystem by launching the OP Home website.

Take a look at the service at op-koti.fi.

First crowdfunding, support for large caps, security for loan repayment and new payment solutions

OP Crowdfunding’s first investment project involved the small ice cream factory Suominen's Milk Ltd which sought capital for growth and to start exporting its organic ice cream, Jymy. The crowdfunding round was a success, as its minimum target of 200,000 euros was raised in two weeks and Jymy received the targeted number of new shareholders. The final amount raised was over 400,000 euros. OP's second crowdfunding project began in December, with the Nokia-based clothing manufacturer Papu Design, reaching the target already by the end of the year.

With the European Investment Bank (EIB), we signed an agreement on a risk-sharing guarantee facility for large and mid-sized companies. Following the agreement, we made a 300-million euro financing package available to mid-sized Finnish companies. This risk-sharing guarantee will be allocated to OP Corporate Bank's eligible mid-cap financing projects. Within two other ongoing guarantee programmes, SME InnovFin and SME Initiative, OP has already provided a total of over 180 million euros of financing for SMEs. Thanks to these programmes, we are in a strong position to support our customers' investments and growth.

Expectations of rising interest rates and concerns about securing one's finances made many of our private and corporate customers take action. Indeed, the number of interest rate protection products relative to home loans almost quadrupled from a year ago.

Additionally, 2017 was a brisk year for payment services. In the spring, we introduced the Siirto service in our OP-mobile and Pivo apps, which markedly increased phone number based payments among our customers. By now over 333,000 OP customers have registered for Siirto payments. Online and mobile payments became easier with Pivo's new feature which enables the user to pay purchases conveniently with Pivo, without key codes. In the same vein, we began a phased introduction of the Mobile key into OP-mobile.

During the year, we earned many recognitions for our products and services and were selected number one in Finland by Global Finance in its awards for the World’s Best Banks.

Responsibility assessment in lending is part of risk management

OP always assesses lending to customers on a holistic basis. Financing is guided by ethical principles and guidelines for lending. Regulations related to good lending practices and the recommendations of the Financial Supervisory Authority are observed in lending and related instructions.

When it comes to private customers, responsible lending is based on a thorough analysis of the customer’s debt-servicing capacity, determining the appropriate loan size and explaining the risks to the customer in an intelligible manner. In corporate customer financing, recognising and analysing the environmental impacts of financed projects is also important from the perspective of risk management, and forms part of the normal creditworthiness analysis, in addition to the assessment of financial matters. In addition to its own analysis, OP may consult an independent analyst that assesses environmental risks associated with an individual customer or a project in need for financing.




Non-life Insurance


Non-life Insurance

OP is Finland’s leading non-life insurer. OP provides its private customers and corporate and institutional customers with a diverse range of comprehensive insurance solutions. Through our new type of service concepts, digital solutions, high-quality network of partners and process efficiency, we are continuously enhancing our claims services’ customer experience while creating competitive advantage.

OP’s health and wellbeing services are, for the time being, included in Non-life Insurance, but the aim is to make the health and wellbeing business an independent business segment. We want to ensure that our customers have a versatile and comprehensive insurance cover. The key insurance lines for private customers include motor vehicle, home and other property policies as well as personal insurance, such as accident, health and travel policies, both for home life and travelling.

For corporate customers, we seek to safeguard their business continuity, support employees' work ability and help to create a safe working environment. We provide our customers with extensive and diversified risk management services, which enable them to better ensure trouble-free and secure business operations in the case of problems. The entrepreneur himself/herself, company staff, the company's fixed and current assets, cargo, vehicles and the business itself are the key insured objects or persons in the field of business insurance. OP also offers cyber-insurance against data damage and occupational healthcare service that can be included in the personnel's personal insurance contracts.

In claims services, OP has partnership agreements with firms representing over 20 industries, such as healthcare services providers, car repair shops, building renovation firms and household appliance retailers. Through partnerships, OP ensures excellent customer experience, cost-efficient and even-quality claims settlement services and their easy availability. New digital services, such as vahinkoapu.op.fi (Claim Help) and OP-mobile's Insurances section provide customers with a smooth way of managing claims. The Claim Help service offers instructions for customers in the case of loss or damage and information on what each insurance covers. Claim Help is also available on OP-mobile and OP Business mobile. On OP-mobile for private customers, a policyholder can then also file a loss report. Personal customers file approximately 68% and corporate customers 43% of their loss reports either online or through mobile.

Read more about Non-life Insurance products and services at op.fi.

According to OP’s strategy, Non-life Insurance will be redesigned, for example, through development of claims services and product range. Non-life Insurance aims to be the most innovative player in the sector and modernise the Finnish non-life business.

Management models for vehicle and mobile device claims represent novel service concepts

According to its strategy, OP aims to shift the development focus from individual products towards customer-driven service concepts. Non-life Insurance has already taken steps toward this aim, for example, in the service models for vehicle and mobile device claims that seek to facilitate a customer’s daily life and thus provide a superior customer experience.

Our new type of vehicle claim service model launched in 2015, the Repair coordinator service, was extended into a nationwide service during 2017 and it is now available in 12 localities and 22 outlets.

In this service, the customer suffering motor vehicle damage is directed straight to the partner repair shop where OP’s repair coordinator is on the spot. The purpose of the model is to facilitate vehicle damage management and claims in such a way that the customer can have his/her car repaired and manage claims at the same time and thus get back to normal faster.

Correspondingly, our new service model for mobile device claims enables the customer to have their mobile device repaired quickly at an OP partner repair shop with no separate loss report. The service is available in 30 outlets and by post in the whole country. OP annually compensates for damage to some 30,000 mobile devices. Thanks to the new service model, our customers can manage the claims related to their mobile device damage considerably more easily than before.

For both services, customer satisfaction is excellent.

Responsibility in Non-life Insurance means protecting customers against risks and encouraging pro-environmental action

In terms of responsibility, OP is in charge of promoting the customer’s risk management and safety and loss prevention. Mapping potential risks and security issues together with the customer, we optimise insurance solutions individually for each customer. We ensure that our customer is sufficiently aware of his/her risks and the loss or damage that he/she may suffer will not cause insuperable financial difficulties to him/her.

In 2017, OP Insurance took part in the traffic safety promotion project Vuosisadan liikenneteko (Traffic act of the century). Among its project activities, OP organised a virtual reality tour in 40 localities challenging people to look at traffic as a small child sees it.

Climate change is affecting the lives of our policyholders and the business environment of our corporate customers. OP wants to make its insurance business even more sustainable. Our aim is that our insurance solutions cover all policy-eligible risks as extensively as possible in changing circumstances as well. OP requires that its claims partners pay attention to the principles of sustainable development and act accordingly.

We promote sustainable development not only by developing our own business but also by encouraging others to perform on a more environmentally sound basis. We provide support for our customers and partners on operations curbing climate change. We offer information about the risks of climate change and help in adapting to it. Our goal is to foster responsibility among people and corporations while contributing to developments in legislation and official regulations on climate change.

Stepwise expansion of health and wellbeing services

In 2017, Pohjola Health Ltd expanded its hospital network by two new Pohjola Hospitals as the first Pohjola Hospital located in Helsinki and the Tampere hospital opened in 2016 were complemented by the Oulu hospital in May and the Kuopio hospital in August. All four Pohjola Hospitals provide basic healthcare and special healthcare services, examinations, surgery and rehabilitation on an extensive basis.

The hospital network will be completed in May 2018 when the Turku hospital opens its doors. In the coming years, the business is to be expanded through, for instance, the construction of a nationwide medical centre network. Another priority is to focus on the development of digital health and wellbeing services.

Each Pohjola Hospital collects feedback from its customers through the NPS (Net Promoter Score). The NPS among surgery patients has been high since the first hospital’s opening, attaining 97 in 2017 (NPS range -100-+100).

Expanding health and wellbeing services is well-suited to OP's responsible mission of promoting the success and prosperity of its owner-customers and operating region. Pohjola Hospital has succeeded in shortening a patient’s stay on the clinical pathway significantly, which benefits all parties involved: employees, employers, society and non-life and pension insurers through shorter absences and lower costs, claims paid and loss of income.




Wealth Management


Wealth Management

OP ranks among the top wealth management services providers in Finland. Wealth Management responds to the saving and investing needs of private and corporate clients with a client-driven approach and offers the best digital wealth management services and a unique Private Banking experience.

OP provides private clients with an extensive range of savings and investment services. The range of mutual funds covers funds that invest in various asset classes and market areas. Responsibility for the portfolio management of these funds rests partly with OP Financial Group's own investment organisation and partly with its international partners. The product range of life policies consists of pension policies, endowment and unit-linked policies and pure risk policies.

For institutional and corporate clients, OP provides not only discretionary investment management and advisory investment management but also modern risk reporting, portfolio analyses and liquidity management solutions for corporate customers. The service range for institutional investors includes an opportunity to invest in alternative investments alongside OP’s pension and insurance companies.

OP boasts Finland's largest Private Banking network which provides both private individuals and corporate and institutional clients with contractual, personalised and comprehensive investment management services. Private Banking service involves the range of products and services offered by OP and external partners. The service models include discretionary investment management and advisory investment management.

Moreover, an extensive range of securities brokerage, custody and analysis services is available to private, corporate and institutional clients. OP's award-winning equity analyst team tracks over 80 listed Finnish companies, prepares forecasts and recommendations on a company- and sector-specific basis and produces diverse analysis reports on macroeconomics, stock markets and industries.

Read more about Wealth Management products and services at op.fi.

Extended product range and improved services

As a services provider owned by its customers, OP promotes the success and prosperity of its customers. In 2017, we extended our product range and improved our services in various ways.

Enhancing our savings and investment services, we adopted an entirely new operating model and tools for investment sales. We also carried out an extensive reform of our saver and investor customers' agreements leading to savings and investments service packages with a transparent structure and clear pricing. The EU-wide MiFID II regulation in force from the beginning of 2018 that improves investor protection was behind making the new agreements. OP has prepared for the changes caused by this regulation through changes in its services and contract terms.

Our passive investment offering was also expanded. We lowered all our index fund management fees to 0.39% and launched the new OP-World Index Fund. Through our set of index fund products, our customers have the opportunity to make cost-efficient investments in various global markets.

We also launched the new OP Public Services Real Estate Fund (non-UCITS) in parallel with the existing OP-Rental Yield. The story behind OP Public Services Real Estate is based on the provision of services vital to society and needed by Finnish citizens in the course of their lives. The fund spreads its investments widely across real estate utilised in education, social services, physical culture and sports, and healthcare services provided by society.

In equity brokerage, in April we adopted Smart Order Routing (SOR) enabling the use of alternative trading facilities for equity orders beside traditional stock exchanges. SOR gives investors the opportunity to always seek the best possible liquidity and price for their equity trades.

Read more about the SOR-service.

Strongly involved as an arranger of initial public offerings of Finnish companies, OP was the only party to take part in all IPOs on the Nasdaq Helsinki main list this year: Kamux, Silmäasema, Rovio and Terveystalo. In Finland, 2017 marks the best IPO year of the millennium so far in terms of euros, as the total value of IPOs attained some 1.7 billion euros.

Morningstar selected OP-Finland Small Cap Fund as the best equity fund in Finland. The selection was based on a comparison of return and risk over the past five calendar years. OP-Finland Small Cap invests in the equities of small and medium-sized enterprises (usually with a market capitalisation below 1.5 billion euros) operating in Finland.

OP aims to talk about investing and asset management with customers in an understandable way and to lower threshold for investment. In 2017, we increased the number of our customer webinars dealing with various types of investments in plain Finnish.

Sustainable investment

OP aims to lead the way in sustainable investment in the sector on a global basis. OP's responsible investment involves the consideration of environmental, social and governance (ESG) issues in investment decision-making, compliance with international standards, active ownership and engagement, negative screening and positive thematic investment.

OP Wealth Management's investment operations comply with the UN Principles for Responsible Investment. We expect our investment vehicles to conform with international standards such as the Global Compact and the OECD Guidelines for Multinational Enterprises. In keeping up with international standards, we make use of an independent partner (GES Investment Service) which produces continuous analyses of the fulfilment of international standards by investment vehicles, for use by investors. The partner checks all of OP's asset management and fund management companies' investments twice a year for violations. Screening includes direct and active equity and corporate bond investments and all OP funds making the abovementioned investments, but excludes, for example, index-linked products and mutual funds managed by external portfolio managers.

During 2017, we made more ESG information of funds available to our customers. Published quarterly, our fund-specific ESG reports include information about each fund's carbon footprint, its portfolio companies' ESG ratings and positive environmental impacts. We also began attending AGMs of investee companies outside of Finland in 2017. Going forward, OP funds will attend a considerable number of investee company AGMs abroad. To help us in this, we use a service provider which produces AGM analyses to us and is in charge of delivering our voting guidelines to the AGMs.

Read more in the RI Transparency Report.

OP Property Management is also committed to the principles of responsible investment and observes responsible investment principles in its real estate asset management. It manages property investments of the real estate funds it administers and direct property investments made by its customers. In the maintenance of its directly owned properties and in its new investments, the company places an emphasis on energy efficiency, lower consumption and waste management. When it comes to indirect property investments, the company is active in exercising influence on the underlying funds’ and investee companies’ boards of directors and investment committees so that sustainability issues are taken into consideration.

OP Property Management is developing sustainable activities in the real estate sector on an ongoing basis. The company has signed a national energy efficiency agreement and is involved in developing CSR reporting in the real estate sector. Moreover, the company has created its own environmental programme aimed at continuing to reduce environmental impacts caused by operations.

Read more in OP Property Management's environmental report.