Froda teams with SpareBank 1 Østlandet on embedded finance

By Parth Prabhudesai

Froda has partnered with SpareBank 1 Østlandet to offer embedded SME lending, marking the FinTech’s first collaboration with a traditional bank and one of the first such deployments in Europe.

Under the partnership, the Norwegian bank will integrate Froda’s automated loan application into its platform, enabling small businesses to access financing seamlessly within their existing banking journey. The integration aims to reduce manual processes, improve accessibility, and expand lending to underserved SME segments.

Olle Lundin, CEO of Froda, said the partnership reflects a broader shift as traditional banks adopt embedded finance to reach small businesses more efficiently and profitably. The initiative addresses a long-standing challenge in SME lending, where high operational costs have limited banks’ ability to serve small-ticket loans. Europe’s SME financing gap is estimated at €400 billion, highlighting the need for more scalable solutions.

Christian Fjestad, EVP of Technology and Development at SpareBank 1 Østlandet, said the collaboration combines the bank’s scale and trust with fintech innovation to deliver faster and more relevant financing solutions to small businesses.

The solution uses Visa Direct for instant disbursement and automated repayments, leveraging Froda’s existing partnership with Visa. The rollout is expected by the end of Q1 2026.