It is very exciting to become part of the exclusive group of Swedish banks that are connected to Swish. Our ambition is to create a complete banking offering, including Point of Sales systems, financing and payment solutions, for all small business owners in the Nordics. As Sweden's most loved digital consumer bank, we see great potential to help small businesses grow their business and reduce their administration by offering SMEs the same technology-driven, but very personal and accessible service. Swish will be an important piece of the puzzle for us, and we look forward to being able to present one of the market's best offers for SMEs in 2023.
We are very happy to welcome Northmill as the latest bank to join Swish. Today we have 8 million users in Sweden, and we are growing steadily as a payment method in commerce. The fact that we continue to attract banks to join us, is a testimony of strength and gives us confidence that we continue to do the right things.
It's really great to be able to offer our users such a good card and account. At the same time, we also give them the opportunity to pay safely with Apple Pay. We constantly want to add more ways for people to pay and manage their finances to give them freedom and control with great user experience.
The introduction of WeMeet sends a strong signal on how we choose to differentiate ourselves and define our position in the market. Many bank customers feel overlooked in the midst of the powerful digital transformation we are in. The importance of the personal meeting has been forgotten. Customers have ended up in limbo and we understand their frustration. Therefore, we want to show that you can be a true technology-driven company - a neobank - and be personal at the same time. This is Northmill's goal. We see the same thing happening in other industries, such as health-tech, where the need to feel secure is crucial. Even though we are first among the neobanks, I predict that we will not be the last.
We see a global trend in several sectors, among them banking, where customer service is being downgraded. It’s the wrong way to go. We talk to our customers every day and have seen a growing need to be able to offer a personal meeting. That’s the main reason we are introducing WeMeet. The fact that we’ve already managed to have an average response time of two minutes, and a customer satisfaction of over 90 percent, doesn’t prevent us from scaling up further. When it comes to people's financial health, trust is very important - and the possibility of a personal meeting plays a big role. It will be very exciting to explore this next step. We already have several ideas on how to develop WeMeet to assist and educate people further, in order to help them improve their personal finances. And of course, we make it available to all customers at the same time.
At Northmill we want to improve people’s financial lives. Now, we are also adding merchants to this vision. We will give merchants the tools to offer an amazing experience for the end users, regardless of how or where they choose to shop. Just like many banking customers, a lot of merchants feel forgotten and put aside, not least after the turbulence of recent years. We want to change that. The market will look very differently in just a few years. The next generation’s shopping will be without boundaries where social platforms, in-store and e-commerce fill the same purpose. As a tech-company with a Swedish banking license within the Group, we can utilize the experience we have in using data to create a great customer experience. At the same time, we can challenge with better pricing and personal customer service. In the future, we also see the possibility to introduce several smart payment solutions in stores. The team joining Northmill is passionate, ambitious and very good at what they do. It will be a great fit and I am very excited to see what we will achieve together.
Moreflo has had an amazing journey that I am very proud of. Now I have the opportunity to embark on a new quest together with both former colleagues and new ones at Northmill, which feels great. The timing is perfect and I will continue to work with developing the product offering and ensuring that merchants’ and end users’ everyday lives become even better.
It feels great to become a part of Northmill and lead this venture. We will return the confidence back to the merchants to sell, charge and tailor their own experience the way they want. There are a few large players in the market today, e.g. Zettle, Square, Adyen and Klarna, and at the same time, there are other neobanks, e.g. Revolut, which are also taking on this market. But no one else is taking it on the way we intend to. During my 15 years in the industry, I have never seen a company standing so well-prepared to change the way we shop as Northmill does. The conditions are perfect for a European roll-out and today we already have a presence in Denmark, Finland, Norway and Sweden. The technology, the will and the competence are there to challenge by lowering costs and thresholds, to question outdated things such as contract duration and unnecessary fees, but also to invest in having a really good and personal customer service.
To take over as CEO of Northmill is very exciting because the neobank has the opportunity to do something really, really great. Northmill is in the middle of the strong change that is currently taking place in the fintech market, which is all about being able to find new business models at the focal point between the digital and the personal. I have never seen a company so well equipped for this change. Northmill has a unique position as a deeply technology-driven company, with profitability and its own banking license - all while still growing. This makes it possible to challenge what banking is about, namely the customer's personal experience and needs. The time when a bank can tell the customer what they need is over. The customers lead the way now.
We are very happy that Tord chose Northmill. His drive, technology and product expertise, along with his strong strategic business mindset, are exactly what we need to accelerate our growth journey further. He is used to working closely and directly with customers, and understands the value of listening to their feedback. This is how we will continue to build our offer — together with the customers. My co-founders and I are really looking forward to working closely with Tord on our long-term growth journey.
The development of our new card is a good example of modern product development, where end users are a natural part of the process. That's how I like to work. Release a first version, test and receive feedback, and then continue to develop at a fast pace, always being close to the users working with them. Northmill has managed to find a golden combination between the personal and the digital. The culture and the team are impressive, and I am really looking forward to taking Northmill to the next level together.
We have listened to the feedback that the Reduce-users in Sweden have given us and continuously developed the service, because there is really a positive force in including customers in the product development. We are now ready to take Reduce outside of Sweden, and we feel confident that we have a very competitive product that will help many people reduce their interest costs. The goal is to be able to offer more products and services in the future that help people improve their personal finances in the Norwegian market.
We always strive to be as relevant as possible and offer banking services that we know people want and will benefit from. Today, many people pay a too high interest rate and today's customers do not have the same loyalty to their bank as before. As a customer, you are active and choose to move over certain services if more tailor-made solutions are offered, and not least, if you find better prices elsewhere. This is where Reduce comes in. Reduce has succeeded in helping people lower their interest costs at all levels in Sweden. We attract customers from both major banks and from buy-now-pay-later (BNPL) companies and credit companies.
We are obsessed with the customer experience and while being very technology-driven, we still think that you should be able to call us to get help and answers to your questions. There does not have to be a contradiction between being state-of-the-art, having the latest technology, and providing personal service. On the contrary, that is how you remain relevant.
We are very happy to have Sofia with us. She arrives with great experience from companies that have made a growth journey on an international level and from a close range, she has seen all the phases a fast-growing organization goes through. Northmill is a curious organization, and we are inspired by many things, which also includes what is happening in other industries. Sofia's strategic experience and perspective from many different sectors is something that we truly will benefit from in the future.
At Northmill, there is a strong entrepreneurial spirit, self-confidence and an enormous potential to create something that reshapes the perception of what a banking experience should be like. It feels very tempting to be a part of it. Northmill is obsessed with the customer's experience, has a strong culture and is very modernly organized. These are key elements and amazing strengths as Northmill now steps into an exciting growth phase. I will be an active board member and look forward to the challenges.
This is a milestone in our growth journey. It provides room for maneuver and gives us the freedom to shape our offering and services in the way we know the customers ask for, without being dependent on other banks. Obviously, there is a lot of work behind getting a Visa Principal license, but now we look forward to reaping the benefits of it. We will be able to offer even more personal and intelligent banking services, while reaching a global payment network at the same time.
It is an honor to welcome Northmill to the Visa family. This shows that we continue to be the world-leading provider of digital payments, not only for more traditional players, but also for the next generation of banks, so-called neobanks, that place high demands on innovation, flexibility and speed. Northmill's journey is impressive and has just begun. It will be very exciting to follow Northmill in their continued growth journey.
We have listened to what customers want from a card. This includes price, design and functionality. We took all these parts with us straight into the product development and, therefore, we believe that the card will be truly appreciated among the users.
It feels great to welcome Johan to Northmill. He will contribute with experience, knowledge and great energy to an important function in the bank at a time when a lot of exciting things are happening, both at Northmill and in the fintech sector as a whole. We are building a bank together with our customers and it puts its stamp on our growth journey. I am convinced that Johan will fit right in and play an important role in continuing to develop Northmill.
I am excited and humble ahead of this new challenge. Northmill is at a very exciting phase and has all the tools and prerequisites to scale further. In my mind, Northmill stands out among neobanks with a sustainable business model and being a deeply tech-driven company at the same time. There is a hunger to explore and drive change for real - that was something that enticed me.
Personally, it is inspiring to operate in such important areas as credit and analytics, and contribute to creating as safe and good products as possible for the consumers. Historically, credit products have looked pretty much the same and it has not been obvious that the foundation has been the consumers and their experiences. Today, luckily, that has started to change and I believe such a product as Northmill Reduce, which helps people lower their cost on existing credits, is a great example of this exact change towards uncompromised customer focus. That is also why Northmill is the right place to be for me.
Clubs and associations on this level are a fantastic, strong force in Swedish society. They contribute to creating a social community, strengthening physical and mental health, integration and offer a much broader culture for the local society. We want to support all of this, and that is why we are launching this initiative. Indeed, it feels very natural to choose women’s football from Division 1 to 5 as a start, and the response from the clubs has been amazing!
Rather than spending time, money and energy on supporting big and well-known men’s teams, which many companies do, we want to go against the stream and do the opposite. In the same way that we are building our bank - by listening to people, by being long-term, by having a sense of people’s everyday lives - we want to give support where we know it makes a real difference.
This is an initiative that we want to develop further together with the clubs. Exactly what the next steps look like are not yet decided. Currently, we are listening to the clubs and we are trying to understand how we could take the partnership to the next level. For example, if a club helps someone to have better financial health, we can support the club with additional funds. Another possible step is a national tournament for the member clubs when the pandemic is over.
It is exciting to yet again be part of this prestigious list. We are proud that we, from a business perspective, continue to handle the rapidly changing banking landscape and simultaneously release new products and features. The fact that we are a tech-company, organized in product teams with a true engineering culture, has really helped us handle the complexity of today’s market in a really good way. We never lose focus of what it is all about; listening to people and solving real customer problems. I am truly proud of all our Northmillians hard work and I am really excited about everything that lays ahead of us.
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.
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.
When we now start to see a shift in banking towards smarter and more customer-oriented products, driven by customers' changing demands and behaviors, we as Sweden's only completely cloud-based bank see great opportunities to meet the new demands and be a positive driver for better banking services for all.
We are happy to be able to offer our customers another safe and long-term way of saving money, a year after the launch of our first savings account. We operate in a heavily regulated environment, but once again we prove that we’re able to continuously introduce new products that bring value to our customers. We are extra proud of our product Reduce. The response has been fantastic, as we have managed to lower the interest costs of thousands of people.
The customer gets a smart and user-friendly experience in the app, as well as a safe deposit up to SEK 1,050,000, which is the state-provided deposit insurance. We continue to broaden our product offering at a rapid pace and are constantly exploring new, smart technologies and customer-focused solutions. Our ambition is to always move towards creating a very personal, relevant and intelligent experience that helps customers improve their financial lives. 2021 will include many exciting product launches and updates. We are really looking forward to this year.
We are happy to welcome Tobias to Northmill Bank! He has a wide experience and international expertise, and has a deep knowledge of how a modern and agile tech and production organization works. Today, over fifty percent of our employees work with tech and we have the ambition to continue our long-term commitment and grow profitably. We want to be a positive driver for more customer-centric financial products, and have a high degree of relevance and personalization in our offerings. Tobias will play an important role in this exciting and business-critical work.”
There is another dimension to Northmill Bank which attracted me. A genuine desire to improve people's financial lives, and with the help of technology and genuine customer focus, create a banking experience that doesn’t exist today. There’s also a culture of courage where they dare to challenge and question things, that feels very inspiring. There is already a natural scalability and a high operational efficiency in place. I look forward to continuing developing and creating a product and technology organization, which not only supports the business, but actively pushes towards the goal of improving our customers' financial lives.
During my first short time at Northmill Bank I have already noticed that there is a very strong commitment and technical competence among the employees, and a willingness to constantly investigate how new technology can develop our products. Obviously, we want to maintain this speed and engagement, since it will be important to continue testing new solutions that optimize the customer experience.
Tink can be seen as an international leader in open-banking today and has broken many barriers leveraging their strong technical capacity. For us as a cloud-only bank it means that we get a solution that is easy to implement and makes it possible for us to immediately start generating value for our customers. For example, now it only takes a few clicks in the application process for our customers to obtain their account number. At the same time, the collaboration means that we can accelerate the development of Personal Finance Management solutions.
In the end, everything we do is about creating the best customer experience possible. With Tink handling over 10 billion transactions each year and having more than 8,000 developers already using their platform, we know we are getting the right leverage in our ongoing work to democratize banking and give the power over personal financing back to the user.
Becoming a member of RIX is a comprehensive process, during which we have been vetted, tested, and finally approved by the Swedish Central Bank. It strengthens our independence and gives us, as a cloud-only bank, great opportunities to add new types of banking products, with an emphasis on relevance and personalization for all.
I believe that RIX and Bankgirot to many people are associated with very traditional banking services, and that is, of course, something we will offer our customers. But we will also be able to use our innovation and technical capacity to bring products to the market that do not exist today. It is very exciting to be part of creating intelligent and personal banking products for everyone. We already have a product team exploring the opportunities, and testing various technologies.
I am proud that we have managed to grow the portfolio recently while maintaining a customer satisfaction of over 90 percent in the middle of a pandemic, at the same time as we launched new and updated products. Among them Reduce ™, which is a product that enables people to redeem their existing credits and lower their interest rates. Reduce™ has been received very well and we have received many applications from a wide range of customers, despite minimal marketing. We see that our strategy to improve people's financial life with the help of technology is bearing fruit. It feels very inspiring to be a part of this work moving forward.
It is always exciting to be able to take advantage of the talent that already exists within the company. We continue building our product organization, and I am convinced that Simon will play an important role as we now enter another intense period, with a focus on communicating our rapidly growing banking offering in several markets. We live in a competitive world demanding that we every day have the strength and courage to question, and challenge, how things traditionally have been done. It is a mindset that has been with us since the start and I know that Simon will continue in the same spirit.
It was one of our employees in the customer service team, who herself has grown up with two deaf parents, who made us aware of how big this problem really is. After a few weeks of development, testing and evaluation, it is now time to make the service available to all our customers with speech or hearing impairment. The response from the people who have tested it so far has been fantastic.
We have the technical capacity, the will and resources internally, and can therefore control the whole experience for the customer. All the customer needs to do is to book an appointment through the chat and a link with an invitation to a video call is automatically sent out. Our employees skilled in sign language will help the customers.
We have seen an increased demand for different types of savings accounts, especially with the current uncertainty in the markets. Now we provide a safe and secure way for people to get predictability and grow their money. We also see that many customers seek a complement to their traditional banks’ offerings which we provide with our digital and mobile-friendly alternative that in addition offers competitive interest rates.
We have a customer satisfaction rate of over 90 percent and a scalable technical infrastructure. It provides us with very good prerequisites to grow our bank offering and to continuously add products and features that help people in their everyday lives. We constantly update our products based on the feedback we receive from our customers, and we have several exciting product launches planned in the near future.
We are building a bank for everyone and this is an investment in our employees and the customer experience, two things that are tightly intertwined. We can see a growing trend with many companies taking the path of solely investing in self-service solutions, but we know that many people still ask for the opportunity to connect via for example phone. Now we are creating a hybrid where we will have a very competitive self-service offer, but we will also be available in the way the customers prefer.
We are now able to gear up our efficiency, be proactive and take full-scale data-driven decisions. We are also able to gather all the insights in a single platform. It creates a very streamlined process for our employees and enables us to strengthen the connection between the feedback we receive from customers, and how we develop our products.
“It is inspiring and a confirmation that we continue to do the right long-term priorities. We have been able to scale up with profitability and grown across all functions of the organization. The recognition is also an acknowledgment of our strong company culture and amazing people that have been crucial in our strong growth journey. With our Swedish banking license, we continue to take important steps towards building a bank that improves everyone’s financial life and helps people save money.”
We are truly excited that Arash becomes a part of our fast-growing bank. He has an impressive profile and is used to working in a fast-paced and innovative environment. Arash has proven strategic and operational capacity to establish an efficient product organization based on a healthy balance between creativity, compliance and speed. Currently, we make several strategic investments in the organization and it is very encouraging that we continue to attract top talent that is eager to join our journey.
Northmill walks their own path and I truly believe in how they approach the market. They have a strong customer focus and a genuine desire to help people save money, which mirrors the fast-growing product portfolio. It is a very competitive sector, but Northmill has the opportunity to create a real connection to people with its products, and I feel excited to continue developing that capacity. I will also focus on intertwining the strong corporate culture with clear and effective structures for the day-to-day operations, to help employees grow and feel appreciated in their roles.
We are super excited to have Mattias onboard. His extensive experience and deep knowledge within marketing, sales, and overall branding strategy will become an important asset to our team in a time when we are growing our banking offer and further scale our business. We are building a bank centered around the customers’ needs which puts an extra level of responsibility on the organization to be curious and receptive. Mattias will play an important role in continuing to develop that culture.