Swedish digital bank Northmill raises €24.7M as it looks to establish itself in ten European markets by 2023

With the Covid-19 pandemic’s restrictions now relaxing across the globe, everyone is adapting themselves to the new normal. Almost all the sectors are still going through a rough patch. However, for the fintech sector, things seem to be progressing and getting an all-new dimension during this crisis.

Fintech company raises funding

In a recent development, a Stockholm-based fintech Northmill Bank has raised SEK 250M (approx €24.7M) through its parent company Northmill Group.

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

Use of the funds

The raised capital will be used by the company to continue its expansion and accelerate the development of new products. The company also mentions that it is aiming to establish itself in ten European markets by 2023.

About Northmill Bank

Founded in 2006, Northmill Bank is a Swedish neobank with a mission to improve everyone’s financial life by offering relevant and personalised banking services built on intelligence.

The firm has introduced a large number of new products and features including the savings account Rebilla Reserve and the Rebilla Card. To meet the growing demand for these new products and features, Northmill has decided to put in an extra gear in its product development. It has about 200,000 customers and 145 employees.

Growth and development

Hikmet Ego, co-founder of Northmill Bank says, “When we now start to see a shift in banking towards smarter and more customer-oriented products, driven by customers’ changing demands and behaviours, we as Sweden’s only completely cloud-based bank see great opportunities to meet the new demands and be a positive driver for better banking services for all.”

In March 2020, Northmill invested in a new cloud-based platform from leading CRM company Zendesk, Inc. 

Northmill Bank received a Swedish banking license in September 2019 to offer savings, credits, payments, and insurances. The neobank, which just launched its third savings account, plans to launch many products this year. 

Next up is an expansion to Norway with the product Reduce, which has already helped thousands of Swedes to lower their interest rates on part-payments, private loans, and installments, claims the firm. 
The introduction of the neobank’s third savings account takes place almost exactly one year after the launch of the first one, and just two months following the membership in RIX – the Swedish Central Bank’s payment system.