Swedish challenger Northmill Bank scoops £22m in fresh funding

By Aisling Finn on Friday 12 February 2021

Digital Banking

The Swedish bank plans to be established in ten European countries by 2023. 

Swedish challenger Northmill Bank scoops £22m in fresh funding
Image source: Hikmet Ego/Northmill Bank

Northmill Bank has closed a SEK250m (£22m) funding round as it sets its sights on rapid European expansion.

The Swedish bank, which received its full banking licence in September 2019, plans to use the fresh injection of capital to launch in ten European countries by 2023. 

Currently only available in Sweden, Northmill Bank has tipped Norway for its first international destination, where it will launch its interest rate reducing product, Reduce.

Hikmet Ego, CEO and co-founder of Northmill Bank, said: “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."

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

Rutger Arnhult, Chairman of the board of M2 Assets Management AB, added: “Northmill Bank is already a profitable company with a proven and sustainable business model, which stands out among today's tech investments.”

“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. For me, this is an investment in a tech company with long-term owners, who are just at the beginning of their journey. I see great growth potential in the bank.”

Earlier in the year, Northmill launched a new 24-month fixed-rate savings account, with 1.35 per cent annual interest.

The new savings account is the bank’s third and comes almost a year after the first, a free account with 0.6 per cent interest, back in January 2020.

Back in October 2020, the Swedish challenger bank promoted Simon Nilsson to chief commercial officer to help it realise its European expansion plans. 

Founded in 2006, Northmill has amassed over 200,000 customers and employs 150 people.

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