Coop Pank: Bringing open banking to Estonia

Tieto Banktech worked with Coop Pank to bring market-leading Open Banking services to Estonia and pave the way for advanced Open Finance solutions in the future.

Coop Pank’s growth ambition

Coop Pank is one of Estonia’s five largest banks, with strong capabilities across retail banking, mortgages, consumer loans, cards and savings. Since 2017, the bank has grown five-fold in customer numbers and its lending portfolio. Its goal is to reach a 10% market share in Estonia by 2027, supported by a minimum loan portfolio of EUR 2 billion.

The challenge

Turn compliance into opportunity

Coop Pank needed to align its growth ambitions with the requirements of the second Payment Services Directive (PSD2).

The regulation requires banks to open payment services and securely share customer data with authorized third-party providers. Coop Pank therefore needed open APIs that could meet regulatory requirements while supporting its wider open banking ambitions.

The goal went beyond compliance. Coop Pank wanted to strengthen its competitive position, improve customer experiences and create opportunities for new financial services.

The solution

From sandbox to live APIs

Coop Pank selected Tieto Banktech before PSD2 came into force, based on its experience in open banking and successful project delivery.

Tieto Banktech delivered a set of live open API connections within six months. The first step was establishing a sandbox environment required by the Estonian regulator, enabling Coop Pank to test connections with other businesses, including retailers and financial service providers.

Tieto Banktech then developed the live APIs and integrated its open banking systems with Coop Pank’s core software. This integration was completed in four months.

Growth ambition

Building towards 10% market share

Coop Pank aims to grow its market share in Estonia to 10% by 2027, supported by a minimum EUR 2 billion loan portfolio and an expected customer base of approximately 150 000.

Target market share by 2027

10%

Minimum loan portfolio EUR

2 B

The benefits

More services, more opportunity

PSD2-compliant open banking services have enabled Coop Pank to expand its offering beyond traditional banking services and channels.

1

Higher transaction volumes

Coop Pank has already seen an uplift in transaction volumes following the implementation of its new open banking services.
2

Connected financial services

Account Information Services and Payment Initiation Services make Coop Pank’s services easier to integrate with third-party providers.
3

New growth opportunities

The bank is exploring new products and revenue streams enabled by its open banking capabilities.

Coop Pank has already seen an uplift in transaction volumes based on the new system.

Coop Pank customer case

What comes next

Preparing for open finance

Coop Pank is already looking beyond PSD2 towards the next stage of European payments regulation and open finance.

The bank plans to develop new services using a dedicated development portal based on the Tieto Banktech open banking platform. The aim is to reduce development time and make it easier to test new products.

Coop Pank is exploring potential use cases and how new services developed through the platform could be positioned in the market.

Open banking