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5 FinTech companies from the Nordics making an impact

By Joy Dumasia

August 19, 2021

  • Denmark
  • Klarna
  • Northmill Lendonomy

FinTech, India, funding, Turtlemint, insurtech, True Balance, Mobikwik, Slice, InstamojoFinTech 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 Artificial Intelligence and Machine Learning. It will make FinTech products an integral part of our digitalized life.

The Nordic region, or Norden, may consist of the five sovereign states Denmark, Finland, Iceland, Norway and Sweden, plus the three autonomous territories connected to these states: the Faroe Islands and Greenland (Denmark) and Åland (Finland).

One reason for the Nordics’ FinTech growth is that residents and citizens of Norway, Sweden, Finland, Iceland and Denmark tend to be digitally savvy on the whole, with some of the highest percentages of new technology adoption and mobile banking usage in the world.

The following are 5 FinTech companies from the Nordics making an impact:

Founded in 2005, Stockholm-based Klarna is a FinTech that provides interest-free payment solutions for consumers buying from online retail shops. Klarna is known for its disruption in the ‘buy now pay later’ market; it regards itself as a healthier, simpler and smarter alternative to credit cards.

The Company has since evolved and is providing payment solutions; Klarna offers direct payments, pay after delivery options and instalment plans in a smooth one-click purchase experience that lets consumers pay when and how they prefer.

IBS Intelligence reported that Klarna, the global banking, payments and shopping service, is launching an experiential activation in the heart of Manchester to raise awareness amongst consumers and influencers regarding social media advertising guidelines.

Vipps is a company in smart payments in Norway; through the merger with BankID and BankAxept, they also deliver solutions within electronic ID and in-store payment. Founded in 2015 and developed by DNB Bank, Vipps is a Norwegian mobile payment application designed for smartphones. It is a member of the European Mobile Payment Systems Association.

Recently, IBS Intelligence reported that Danske Bank A/S has agreed with OP Financial Group in Finland and the consortium of banks behind Vipps in Norway to merge the three mobile payment providers MobilePay, Vipps and Pivo. 

The companies aim to join forces to strengthen product development and innovation further and thereby provide a better customer experience within payment solutions – while at the same time giving personal as well as business customers access to the best features of each of their existing solutions.

Tink started in 2012 as a consumer app that helped customers keep track of their finances but later pivoted to providing banks and financial companies with its aggregation software; it’s now one of Europe’s open banking companies.

Tink’s platform connects to more than 3,400 banks that reach over 250 million bank customers across Europe, allowing customers to access aggregated financial data, initiate payments, enrich transactions and build personal finance management tools through one API.

IBS Intelligence recently reported that Visa announced a definitive agreement to acquire Tink, a European open banking platform. Visa will pay total financial consideration of €1.8 billion, inclusive of cash and retention incentives, to acquire Tink. 

Lendonomy is a Norway-based FinTech company developing a mobile-based social network for young people to foster financial literacy and help the youth build an internationally verifiable credit history on the blockchain. It is currently in the process of developing a blockchain-based “Airbnb for lending” targeting GenZ.

Neonomics entered into a partnership with Lendonomy to enable the latter’s clients to lend and borrow small amounts of money to and from each other with payments powered by the supplier’s open banking API. Lendonomy is a peer to peer mobile microlending application that helps young people between 18 and 27 build a verifiable credit history and healthy relationships with credit.

Established in 2006, Northmill is a Swedish tech bank that aims to develop secure financial services for customers through new technology and innovation. Northmill Group operates as a FinTech company; the Company develops a platform for a wide range of financial services.

IBS Intelligence recently reported that Northmill Bank 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.

ALSO READ: Open Banking roadmap for mid-sized banks in Europe Report 2021

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