Northmill Bank, a Swedish neobank, raised US$ 30 million (SEK 250 million) in a funding round led by M2 Asset Management, a Swedish investment company controlled by Rutger Arnhult, and the institutional investor and asset management firm Coeli.

Northmill Bank said that the new capital will be used for continued geographical expansion and accelerate the development of new products.

Northmill Bank received a Swedish banking license in September 2019 from the Swedish Financial Supervisory Authority (SFSA) to offer savings, credits, payments and insurance services.

The neobank, which just launched its third savings account, plans to launch more products during this year which includes plans for an expansion to Norway with a product Reduce, which helps Swedes to lower their interest rates on part-payments, private loans and installments.

Hikmet Ego, CEO and co-founder of Northmill Bank commented,

“We are happy to welcome such competent and experienced owners to our growing neobank. Our fantastic employees, long-term perspective, proven business model and our strong belief in technology as a driver, have created the conditions now enabling us to accelerate further.

 

Our investors share our view that the bank of the future will be built by being receptive and developing products that really help customers improve their personal finances.”

Rutger Arnhult, Chairman of the Board of M2 Assets Management AB said,

“Northmill Bank is already a profitable company with a proven and sustainable business model, which stands out among today’s tech investments. We have been following their journey for a while and have been impressed by the founders, as well as the company.

 

The banking market is well on its way to change and the winners will be those who best can adapt to the new digital reality. For me, this is an investment in a tech company with long-term owners, who are just at the beginning of their journey. I see great growth potential in the bank.”

Featured image credit: Northmill Team