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Fintech Northmill Gets Banking License: Should Revolut, N26, and Others Be Worried?

Summary:
Northmill is a Sweden-based fintech company, which, up until now, has been offering cloud-based financial services under the slogan “building the bank of tomorrow.” Since 2017 the company has been working closely with the SFSA to become a fully regulated bank. While some might think that such a rival newcomer can’t do a thing to industry giants like Revolut and N26, Northmill currently offers a consumer-focused product that could lure in potential clients from its competitors.The company currently offers a service where users who have a partial payment, credit or credit card bill between 1,000 and 300,000 kroner, can choose to switch to Northmill which offers to pay off the debt to the existing creditor and to offer lowered repayment option. Currently, the company’s insurance business is

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Northmill is a Sweden-based fintech company, which, up until now, has been offering cloud-based financial services under the slogan “building the bank of tomorrow.” Since 2017 the company has been working closely with the SFSA to become a fully regulated bank. While some might think that such a rival newcomer can’t do a thing to industry giants like Revolut and N26, Northmill currently offers a consumer-focused product that could lure in potential clients from its competitors.

The company currently offers a service where users who have a partial payment, credit or credit card bill between 1,000 and 300,000 kroner, can choose to switch to Northmill which offers to pay off the debt to the existing creditor and to offer lowered repayment option. Currently, the company’s insurance business is reported to have over 15,000 monthly users.

While the company has this service up and running, they are in plans to also offer saving accounts, cards, and payment transfers.

“Northmill has grown organically and laid a solid foundation with our current credit and insurance offerings to our 200,000 users. The most recent product, Rebilla Reduce, aims to lower people’s current interest rate on existing credits. By being able to operate as a bank, we have the tools to take the next step and drive true positive change for the users,” commented Margareta Lindahl, Chairwoman of the Board at Northmill.

Some of the conditions which Northmill needed to apply to were a must-have of 5 million Euros to launch its banking services with an additional comment that Northmill, at all times, should have a capital base of no less than the initial capital which is 5 million Euros.

Northmill now faces a crowded room of competitors. Companies like Revolut, N26, and Monzo have been offering cloud-based banking services to their customers for quite a while. Revolut, which is a UK-based fintech company, has been offering some of the best currency exchange rates in the business which is one of the main reasons why people tend to switch to Revolut.

Additionally, the company offers users to create virtual cards, which help users to shop more safely in the online environment. Plus all that – Revolut offers their clients to exchange Fiat to Crypto. However, the cryptocurrencies cannot be used, sent, received or even held, as it is just a custodial wallet, where the user doesn’t hold any keys to their crypto holdings. This feature mainly can be used to speculate on the price of Bitcoin.

N26, on the other hand, has been operating since 2013, and at the beginning of this year, they reported the approximate estimate valuation of 2.38 billion Euros. N26 claims to make customer financial life easier by offering an all-in-one platform for banking with zero hidden fees.

“The banking license means a great responsibility and it is gratifying to see that Sweden and its authorities foster innovation. By being technology-driven and product-oriented we are excited to be able to build a new modern customer-centric bank,” says Margareta. 

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