FinTech Northmill Pulls In $30 Million, Plans Expansion To Norway

digital banking

Stockholm-based Northmill Bank has pulled in 250 million in Swedish krona (about $30 million). The financial technology company (FinTech) said in a press release that “the new capital will be used for continued geographical expansion and to accelerate the development of new products.”

The FinTech gained a banking license from the Swedish Financial Supervisory Authority in 2019. The company had submitted an application two years before the regulatory ruling.

“Our investors share our view that the bank of the future will be built by being receptive and developing products that really help customers improve their personal finances,” said Hikmet Ego, the neobank’s CEO and co-founder. In the release, he said the company and its investors have a “strong belief in technology as a driver” to achieve success.

The funding round of investment “was led by M2 Asset Management, a Swedish investment company controlled by Rutger Arnhult, and the institutional investor and asset management firm Coeli.”

“Northmill Bank is already a profitable company with a proven and sustainable business model, which stands out among today’s tech investments,” said Arnhult in the release. “The banking market is well on its way to change, and the winners will be those who best can adapt to the new digital reality. … I see great growth potential in the bank.”

Northmill, which employs about 150 people, said it now offers savings accounts, credit cards and insurance. Next in its growth plan is an expansion into Norway with Reduce. The company said that the product “has already helped thousands of Swedes to lower their interest rates on part-payments, private loans and installments.”

“Northmill has grown organically and laid a solid foundation with our current credit and insurance offerings to our 200,000 users,” Margareta Lindahl, chairwoman of the board at Northmill, said when the FinTech got its banking license. She added, “By being able to operate as a bank, we have the tools to take the next step and drive true positive change for the users.”