Northmill Bank , the Sweden-based challenger that has around 200,000 customers across three European countries, has raised around $30 million in new funding.
Leading the round is M2 Asset Management, the Swedish investment company controlled by Rutger Arnhult, and asset management firm Coeli. The injection of cash will be used for continued geographical expansion and to accelerate the development of new products. Notably, this will include plans to launch in 10 new markets as Northmill aims to step on the gas. Next stop, Norway.
As it stands, 2006-founded Northmill is available in Sweden, Norway and Finland, where it competes with incumbent banks with physical branches and the likes of Lunar, Revolut and Klarna (which operates as a bank in its home country of Sweden, and Germany).
More adjacent, < a href="https://techcrunch.com/2018/02/21/anyfin/"> extra competitor is Anyfin , might be similar to Northmill’s “Reduce” product, which unfortunately promises to help customers consolidate that existing loans/credit and lower most of the interest payments. “Our fastest-growing product with main driver today is Help reduce, which lowers people’s interest available on existing credits, part-payments and visa credit cards, ” explains a Northmill representative.
Set up nearly 15 years ago and originally activating as a credit provider, in 2019 Northmill secured a full banking security guard license, regulated by the Swedish Financial Supervisory Authority. The bank employs 150 consumers and offers savings, credits, payments and as well , insurances. More generally, it has received a different and slower path a normal most of the newer crop of challengers in Europe, relying less not to mention investment to fuel its growth and claims to have been profitable right from nearly the get-go.
Cue statement from Rutger Arnhult, chairman of the board of M2 Assets Management: “Northmill Bank is readily a profitable company with a tried and true and sustainable business model, which is different among today’s tech investments. We have been following their journey for a while and have been impressed by the founders, as well as the companionship}. The banking market is well on its way to change and the winners will be those people best can adapt to the new rule reality. For me, this is an investment in a very tech company with long-term individuals, who are just at the beginning of their route. I see great growth potential inside a bank. ”