The Role of Banking Regulation in Supporting Start-ups and Non-Profit Organizations A Comparative Analysis of Finland and Other EU Countries

Abstract

This study analyses the challenges immigrant-founded non-profit organizations and start-ups face in receiving mainstream banking services in Finland, particularly against the EU's Payment Accounts Directive (PAD) and anti-discrimination law background. The research uncovers a significant gap between EU-harmonized financial inclusion policies and practical implementation at the country level. Drawing from the case study of Finnish Human Rights Advocates Ry and its denial of access to fundamental banking services, the study investigates whether Finnish banks meet the standards of EU directive on universal availability of payment accounts and non-discrimination on nationality or legal status.

The study utilizes legal papers, EU Commission statements, EBA reports, comparative data from other EU member states, and interaction with financial institutions. Findings point towards a trend of systemic exclusion and indirect discrimination of newly established organizations headed by immigrants. The thesis is that the practices have the potential to be a breach of both EU and domestic commitments.

The thesis contributes to ongoing legal and policy discussion about inclusive finance, suggesting that stronger enforcement action may be required to see EU law being applied in practice. Options include more intensive regulatory oversight, enhanced implementation of existing EU regulation, and information campaigns targeted at institutions and concerned communities.