4 neobanks in the Nordics transforming the digital-only banking space

By Megha Bhattacharya

Neobanks offer banking services to customers directly on their mobile phones or via other digital platforms. This digital-only bank trend has challenged the status quo of the incumbent banks as the former comes with personalised customer experience and product offerings. Neobanks have been aiming to transform the banking landscape.

Europe is considered a hotspot of neobanks and challenger banks with the UK leading the race. However, plenty of innovative digital-only banks have emerged in many European countries other than the UK. Their customer base has grown by more than 15 million, with a projection to reach 85 million by 2023, according to a research by AT Kearney.

Check out these 4 neobanks in the Nordics –

1. Lunar

Lunar, the Nordic challenger bank has raised €40 million in Series C funding from existing investors. The injection of capital follows a €20 million Series B disclosed in April this year.

Recently, FinTech Lunar selected FIS‘ cloud-based treasury and risk management solution with an aim to gain support in liquidity optimisation, risk management and expansion. Lunar selected FIS’ private cloud-based Ambit Quantum for simplifying hedge accounting, regulatory compliance etc. The FinTech will implement the solution on the private cloud under a managed services contract.

Established in 2015 in Denmark, Lunar is a FinTech that aims to provide a 100% digital banking experience through its banking app. In 2018 Lunar Way received the two PSD2-licenses – AISP and PISP and in 2019 the Nordic FinTech received a European banking license from the Danish FSA.

2. Klarna

Klarna is a Swedish bank that provides online financial services such as payment solutions for online storefronts, direct payments, post-purchase payments, etc. Klarna is considered one of the most valuable FinTech in Sweden with capital standing at $1 billion. The country currently hosts around 48 startups with total funding amounting to $2 billion. It was founded in 2005 by Sebastian Siemiatkowski (CEO), Niklas Adalberth, Victor Jacobsson.

Global payments provider Klarna has teamed up with Swedish cryptocurrency broker Safello for bringing its open banking service on the latter’s platform for cryptocurrency trading. Safello has rolled out Klarna Open Banking with an aim to strengthen its market position and enhance its range of payment options.

The partnership will enable around 180,000 Safello users to directly purchase cryptocurrencies from their bank account, using Klarna’s secure payment solution.

3. Holvi

Founded in 2011 and based in Helsinki, Finland, Holvi is а digital bаnking sеrviсе fоr frееlаncеrs аnd еntrерrеnеurs. The company combines mоnеу mаnаgеmеnt tооls with user-friendly and intuitive business current accounts, for offering a banking ехреrienсе that helps users run their businesses.

Recently, BBVA-owned Holvi, was  acquired by Keru FinTech Investments Oy. Keru has acquired all Holvi shares from the Spanish banking group and is the new and sole owner of Holvi with immediate effect. The owner and founding shareholder of Keru is Tuomas Toivonen, one of Holvi’s founders. Antti-Jussi Suominen, the current CEO of the FinTech, will be stepping down from his role and hand over responsibilities to Toivonen, who will lead Holvi as CEO with immediate effect.

Holvi developers have сrеаtеd an all-in-оnе bаnking sеrviсе, which streamlines finаnсiаl рrосеssеs. It is a business banking service for all self-employed and freelancers. Its digital business account combines invoicing, expense management, streamlined bookkeeping, and real-time business insights in one place. Holvi is a financial sеrviсе that ореratеs with its own license as a рауment institution and claims to have more than 200,000 customers (mostly in Finland and Germany).

4. Northmill Bank

Established in 2006, Northmill is a Swedish techbank that aims to develop secure financial services for customers through new technology and innovation.

Northmill Bank recently announced that it has become a member of the Swedish Central Bank’s payment system- RIX. The payment system’s membership is expected to allow the neobank to add a range of new banking products and features to its banking offer, as well as adding extra layers of relevance and customisation. has also connected with the data clearing system and Bankgirot in a bid to offer products such as transaction accounts, the possibility to pay invoices directly in the app and make transfers between accounts.

Northmill Bank also announced that it has carried out a capital round of SEK 250 million ($30 million approx) led by M2 Asset Management, a Swedish investment company controlled by Rutger Arnhult, and the institutional investor and asset management firm Coeli. The new funding is expected to be used for geographical expansion and to boost the development of new products.

Northmill Group AB operates as a FinTech company. The Company develops platforms for a wide range of financial services.

ALSO, READ: Open Banking Roadmap for Mid-sized banks in Europe by IBS Intelligence