Based out of Amsterdam, Brand New Day, a digital pension bank has recently secured an investment of €25 million led by existing investors Hartwig, ASR, and VvAA. The company is planning to use this funding to accelerate its growth.
“With the equity that we had, we were able to add 3000 new customers per year,” says founder Kalo Bagijn. “With this investment that grows to 30,000 new customers per year,” he says. “We need this investment money to grow faster.”
Back in 2017, Brand New Day received the banking license to start savings bank for consumers. Notably, this bank is focused more on pension products, rather than payment products. At present, it employs around 200 people
Before the acquisition of Allianz, it focused on pension investing for individuals and company pensions. Especially, the pension investing was attractive for self-employed persons or people who wanted to save extra in addition to their employer’s pension.
For the uninitiated, the Brand New Day is divided into two branches — a collective branch in which pensions are arranged through companies and a private branch of people who arrange it themselves.
Bagijn sees a bright future for his company. “I started this company ten years ago in response to the usury policy affair. Back then, pension was a non-issue for people under 50. That is now fundamentally different, and much more awareness has arisen, especially due to the great discussion about pensions,” he.
The company now has 10,000 customers with a savings account and 2600 with a pension savings account.
Bagijn: “We were limited in terms of growth in the savings market. Without investment, we could grow with a maximum of 3000 customers per year in pension savings. That now becomes tenfold, 30,000 people a year. With this money, we can compete better with the big banks.”
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