Northmill Bank

Swedish Northmill Bank focuses on providing banking services to its individuals via a web portal and a mobile app. The company initially focused on providing credit products and obtained its banking license to operate as a full-fledged bank in 2019. Products offered by the company include savings accounts, loans, credit cards, and insurance (for loan protection).

Loans are provided under the name of ‘account credit’ with a credit limit of up to SEK 50,000, with individual interest rates ranging between 4.9-19.9% per annum. The company provides flexibility by allowing customers to select the duration of the loan and monthly repayments amounts. However, the company states that monthly payments should be equivalent to at least 3% of the customer’s outstanding debt. The company’s credit cards offer credit lines ranging between SEK 10,000-50,000 and also provide a seven-week interest-free period. In addition, the company also provides a loan protection feature, which makes loan repayments on behalf of the customer in the event of an illness or involuntary unemployment.

In addition to its own loan products, the company also provides a service called ‘Reduce’ which solely focuses on minimizing interest payments on existing loans and other forms of credit such as credit card bills. It does this by repaying multiple loans on behalf of customers; following which, customers pay back Northmill Bank at lower interest rates under one loan. The company claims that it can reduce a customer’s total interest expenses by at least 10%.

The company offers savings accounts, introduced most recently in 2020, with a variable savings rate of 0.85%, and a fixed savings rate of 1.15% per annum (1.35% for 24 months). Variable savings accounts have no minimum balance requirements, while fixed savings accounts require a deposit of at least SEK 5,000.

In February 2022, the company acquired Swedish payments solution provider MoreFlo for an undisclosed sum.

Key customers and partnerships

In February 2021, the company partnered with Tink, an open banking platform. Accordingly, the company aims to utilize open banking technologies to focus on developing personalized banking services which are driven by AI.

By the end of 2021, the company had around 600,000 customers spanning Sweden, Norway , and Finland.

Funding and financials

In February 2021, the company raised SEK 250 million (approximately USD 30 million) in a private funding round led by M2 Assets. The new funds will be geared towards expanding the customer’s geographical presence to 10 new markets in addition to developing new products.