The recent fintech revolution has given emergence to several mobile apps designed to help you stick to a budget, manage money, and stay financially secure.
According to Goldman Sachs, around 92 million ‘Millennials’ will soon be in ‘prime spending years.’ For this, we can give some credit to the host of startups that have emerged and are capitalising on this trend. One among them is Swedish fintech startup Dreams. Based out of Stockholm, the startup provides a unique and easy-to-use mobile application in a bid to help its users meet their financial dreams by re-inventing how financial services are designed.
Have Dreams?
The Sweden-based startup is an application that allows creating services that empower users to live sustainably through improved savings, better use of income, smart investments, paying off debts and financial coaching on top of that. The platform offers savings and investment services to retail clients, primarily focused on serving millennials. Available on both web as well as a mobile app, this platform is live in Norway and Sweden. In collaboration with AXA IM, the expansion into other European countries is now on agenda – with Germany as the first market in continental Europe, where the app would be live by early 2020 and those interested can already sign up to be among the first users.
Henrik Rosvall, founder and CEO of Dreams, recently spoke to us about the mobile application platform and how he got into the business.
“We have a methodology that helps people save more money, paying off debts and engage in their financial life in a very emotional way. The app is designed to give you small rewards while you save, so you don’t have to rely on the kick of buying that thing,” says Rosvall.
He has a diverse background working in various industries and has sold a couple of companies that he founded. He has been chief executive at EF Language Travel, as well as a marketing manager at Avanza Bank. He says, “I started looking into user behaviour and questioned myself on what makes people deposit money into the bank without investing.”
Henrik also felt that the problem with investing seems so complicated that people do not want to start with it. He also pointed out that the traditional banks and conventional financial institutions haven’t eased our burden and further made it difficult and dull for most of us. And thus, Dreams platform was founded by Henrik Rosvall and Johan Hemminger.
Expansion on cards!
A week back, Dreams secured a MIFID II securities licence from Swedish Financial Supervisory Authority (FSA) that gives the company a license to operate independently of a partner bank. With this licence, the company plans to expand in Europe on its own without relying on a partner bank. This is a significant step in Dreams’ European expansion, as the license can be easily passported to EU and EEA.
Talking about the expansion plans, Rosvall says, “We are planning to expand to other European countries with our platform and different type of products.”
He adds, “We change people’s savings behaviour, and in turn, we realise their dreams.” At present, Dreams employs around 70 people in Stockholm and other locations.
“We are building a different team for different products.” Also, Henrik is planning on hiring around 5-10 employees per month to focus on both product development and growth.
When asked whether they plan to expand outside EU, Rosvall says, “We do have plans for other countries outside Europe but in a slightly different business model. We can use the same methodology all over the world, but we have to localise some of the product features as well.”
Rosvall further points out, “Asia is much more interesting than the US market. There is a lot of things happening there like a mobile revolution and an economic revolution.”
Market share of 15% of millennials in Sweden and Norway
According to Henrik, Dreams app is being used by over 400,000 users, who have collectively saved over €250 million. Furthermore, the fintech platform has gained a market share of 15% of millennials in Swedish and Norwegian markets.
It’s no secret that there is a significant gender gap within the field of financial services. However, Henrik told that a high proportion of Dream’s customers–69%—are female. He adds, “I think females are under served in financial services.” While there’s a long way to go in resolving the financial services gender gap, at some point, the tides are bound to turn.
Secured €9 million funding!
Recently, the startup raised €9 million in a late seed round led by AXA Investment Managers (AXA IM), Storebrand, the Norwegian insurance company, Finnish Ålandsbanken and a group of private investors. However, the company is planning to raise more funding in the future. “It’s all about grabbing a bigger piece of the market, so we capital for that.”
The distinguishing feature of Dreams lies in the profound application of behavioural research in the methodology and user experience of the app. Rosvall states, “I really would like to push on the unique position that we have within financial wellness. We have been building products to help people get a more sustainable financial life.”
Back in 2018, Dreams was named a Rising Star as part of the KPMG Fintech 100 Awards. Furthermore, the company along with Klarna and Anyfin was the only Swedish companies included on the fifth annual Fintech100 report earlier this year.
Saving money is not a problem if there are appropriate services that fit our different behaviours and needs. This platform, with its unique methodology rooted in behavioural economics and cognitive science, offers a scientifically proven method to customers to secure their financial dreams.
Main image credits: Dreams
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