Northmill Bank, the challenger based in Sweden that has approximately 200,000 customers in three European countries, has raised $30 million in new funds.
The company that is leading the round is M2 Asset Management, the Swedish investment company owned by Rutger Arnhult, and the asset management company Coeli. The cash infusion will be used to continue expansion of the geographical area and for the creation of innovative products. This will include plans to launch products in 10 new markets as Northmill hopes to take a step forward into the gas market. Next stop: Norway.
The company was founded in 2006, and Northmill is currently available across Sweden, Norway, and Finland, in which it competes with traditional banks that have physical branches as well as other banks like Lunar, Revolut, and Klarna (which is an institution in their home nations of Sweden and Germany).
A little farther away, another competitor is Anyfin It is identical to the Northmill “Reduce” product, which promises to help customers consolidate their existing credit or loans and reduce the amount of interest they pay. “Our fastest-growing product and main driver today is Reduce, which lowers people’s interest on existing credits, part-payments, and credit cards,” says the Northmill spokesperson.
It was founded more than 15 years ago and initially functioned as a credit company In the year 2019, Northmill obtained a full banking license, which is overseen through the Swedish Financial Supervisory Authority. It employs 150 people and provides savings, credit, and other insurances, as well as payments. It has chosen a different and slower route than many of the newest crop of rivals in Europe and is relying less on investments to drive its growth, boasting that it is profitable every day.
Cue announcement from Rutger Arnhult, chairman of M2 Assets Management’s board. M2 Assets Management: “Northmill Bank is already a thriving firm with a well-tested, solid, and long-lasting business plan that is unique among the latest investments in tech. We’ve been following their progress for some time and have been impressed by the founding team as well as the business. The world of banking is in the process of changing, which means the most successful will be those who adapt to the changing digital world. This is, for me, the perfect opportunity to invest in a technology firm with long-term owners that are only at the start of their journey. “I see tremendous potential for growth in banks.”