Ferratum Group, which specialises in microloans through mobile phones, has recently been licensed as a credit institution by the Malta Financial Services Authority and opened a bank in Valletta.

This will be serving as a platform for the Finnish company to enter the European market.

Addressing Finance Minister Tonio Fenech and invited guests, the founder and chairman of the group, Jorma Jokela, noted that the company started operations in 2005 offering the first credit loans through mobile phones. The approach used was warmly welcome and it has since spread operations to 20 countries in Europe and Asia.

He added that work to set base in Malta started two years ago but following the first meeting with the MFSA, Mr Jokela immediately decided he wanted to work here.

Lea Liigus, the CEO of the group who is also responsible for compliance issues, said the company understood the need to be highly regulated so as to obtain a licence. It chose Malta after screening many countries because the business environment is friendly and well oriented for its work. It is an EU member and cooperation is part of the daily routine.

She also described the MFSA approach as “unique” while being very strict and meanwhile, it has always listened to the company’s requests.

Minister Fenech said this company from the northernmost country in Europe has chosen the southernmost country from where to operate. He said this is an expression of confidence in our economy, the financial sector and in the reliability of the regulator.

He pointed out that 26 banks are registered here and these include private banks, investment banks and others focused on wealth management services.

Meanwhile, he added the World Economic Forum described Maltese banks as the 13th soundest institutions in the world.

The field of financial services is a fast growing sector for Malta and nearly 10,000 new companies were registered over the past three years. Some 3,400 of these were registered last year, which was the best in recent years. In the first six months this year, 2,570 companies were registered. Last year’s result is therefore set to improve.

Mr Fenech also remarked that the sector needs to continue being sustainable and new niches are to be sought so a think-tank is necessary.