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, another competitor is Anyfin, which is similar to Northmill’s “Reduce” product, which promises to help customers consolidate their existing loans/credit and lower their interest payments. “Our fastest-growing product and main driver today is Reduce, which lowers people’s interest on existing credits, part-payments and credit cards,” explains a Northmill spokesperson.
Founded nearly 15 years ago and originally operating as a credit provider, in 2019 Northmill secured a full banking license, regulated by the Swedish Financial Supervisory Authority. The bank employs 150 people and offers savings, credits, payments and insurances. More generally, it has taken a different and slower path than most of the newer crop of challengers in Europe, relying less on investment to fuel its growth and (Read more...)