Banks will expand their presence in Latvian regions in accordance with the new requirements
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Starting next year, January 1, 2026, the three largest Latvian banks – “Swedbank”, “SEB banka” and “Citadele” – plan to expand their presence in Latvian regions. Such changes are made in order to fulfill the requirements set by the Bank of Latvia, which provide for wider availability of financial services for residents outside the big cities. The move is welcome as it will help bridge the digital divide and ensure more equal access to financial services across the country. On the other hand, “Luminor Bank” already admits that its network of service centers is sufficient and meets the existing needs.
The new rules and their purpose
In 2024, the Bank of Latvia developed “Rules for the provision of financial services in person”, which will come into force on January 1, 2026. The main goal of these regulations is to strengthen the physical presence of banks in the regions of Latvia. It is predicted that a total of around 20 new places of in-person service provision could arise, especially in the administrative centers of the counties. Such an initiative is especially important, taking into account the fact that over the last ten years, the number of bank branches in Latvia has decreased by approximately 80%, and the number of customer service points has decreased to approximately 70 throughout the country. Board member of the Bank of Latvia, Ilze Posuma, emphasizes that wide availability of financial services is the basis of economic development, promoting both economic growth and financial inclusion in all groups of society.
Banking plans and measures
In order to implement the established requirement, “Swedbank” has already opened its first consultation point in Madona, which has been operating in a pilot project since the end of August. These points are not traditional branches, but places where customers can get advice on various issues, such as installing “Smart-ID”, ordering cards or digital security. “Swedbank” representative Jānis Krops states that employees at these points currently accept customers once a week, and the frequency of acceptance is adjusted to the interest of the residents. The bank is also actively looking for premises in other municipalities, for example in Bauska.
“SEB banka” plans to open three new customer service points in Bauska, Kuldīga and Madona. In these locations, services will be provided by appointment, twice a week.
“Citadele” bank has also committed to introduce new service delivery locations in the regions. Although the exact locations and working hours are still being clarified, the bank is adapting to the changing habits of customers and the growing demand for digital services, while also ensuring face-to-face availability.
Digital development and presence in the regions
Although banks are expanding their physical presence in the regions, it is important to note that the overall trend is still the development of digital services. The representative of “Luminor Bank” states that customers are increasingly choosing to receive banking services remotely rather than in person. However, in accordance with the new requirements, “Luminor” also provides customer service points and the availability of ATMs throughout Latvia.
According to the survey commissioned by the Bank of Latvia, some entrepreneurs (28%) believe that credit institutions work too standardized and bureaucratically, without taking into account specific needs. Therefore, the new regulations are a hopeful step towards a more individualized approach and wider financial inclusion in the entire territory of Latvia. The Bank of Latvia invites banks to cooperate with local governments in order to create the most suitable solutions for the regions and fully inform the public about the new opportunities. It is expected that as a result of the application of these requirements, the number of customer service points of credit institutions in Latvia could increase by about a third.
