4 FinTechs based out of Sweden

By Joy Dumasia

FinTech refers to software and other modern technologies used by businesses that provide automated and improved financial services. FinTech in our daily life is Mobile Payment apps, Cryptocurrency and Blockchain like Bitcoin and Gemini. In the future, the range of FinTech services is predicted to transform the market even more with AI and machine learning and will make FinTech products an integral part of our digitalised life.

FinTech refers to the synergy between finance and technology, which enhances business operations and delivers financial services. FinTech can take the form of software, a service, or a business that provides technologically advanced ways to make financial processes more efficient by disrupting traditional methods.

FinTechs role in society is becoming more vital than ever, mainly due to Covid-19. FinTech can be used anywhere, by anyone meaning it becomes accessible to people who may never have taken advantage of financial services before. Through access to essential financial services such as mobile money and e-wallets, FinTech companies are helping lift people out of poverty and create a more financially inclusive world.

The following are 4 FinTechs based out of Sweden:

• Gimi

Stockholm-based Gimi is an app that improves the financial well-being for the next generation by helping children make smarter financial decisions. Founded in 2015 by CEO Philip Haglund, a former professional footballer, Gimi has raised $10m from NFT Ventures, financial expert Harald Mix, iZettle’s General Council Oskar Arndt, and Klarna’s former Chair of the Board, Eva Cederbalk. 

IBS Intelligence recently reported that Gimi announced that it has partnered with ABN AMRO, one of the biggest banks in the Netherlands, to help educate young customers about personal finance and provide them with a safe platform to handle their bank accounts.

• Klarna

Since 2005 Klarna has been trying to revolutionise the retail banking industry. With over 147 million global active users and 2 million transactions per day. Over 400,000 global retail partners, including H&M, Saks, Sephora, Macys, IKEA, Expedia Group, and Nike, have integrated Klarna’s innovative technology to deliver a seamless shopping experience online and in-store. With over 5,000 employees, Klarna is active in 45 markets and has a valuation of $45.6b.

IBS Intelligence also reported that Klarna, a global retail bank, payments, and shopping service, announced the launch of its new Loyalty Card feature in the Klarna App. This allows app users to store and access their physical loyalty cards as digital versions. They can then collect all points and benefits at any merchant without needing to carry plastic equivalents while out shopping in-store.

• Northmill

Northmill is a neobank with the vision of improving financial life. Northmill has helped more than 200 000 customers and has 150 employees in four countries. Northmill Bank AB was founded in 2006 and acts under the supervision of Finansinspektionen, the Swedish Financial Supervisory Authority.

• Tink

Tink is an open banking platform that enables banks, FinTechs and startups to develop data-driven financial services. Tink allows customers to initiate payments, access aggregated financial data, complete transactions, verify account ownership and build personal finance management tools. Founded in 2012 in Stockholm, Tink became a wholly-owned subsidiary of Visa in 2022. Tink’s 500 employees serve more than 300 banks and FinTechs in 18 European markets, out of offices in 13 countries. 

Recently, IBS Intelligence reported that Tink, Europe’s open banking platform, and Revolut have entered into a strategic partnership for open banking technology. Tink’s payment initiation services (PIS) technology will allow Revolut users across Europe to seamlessly move money into their Revolut accounts. PIS enables users to connect to the bank account they want to transfer money from and instantaneously authorise and complete the payment without leaving the Revolut app.  

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