Ahead of our NextGen Nordics conference on April 27, 2022, we will host a weekly briefing of selected top stories emerging from the region and defining the payments innovation model in Denmark, Finland, Iceland, Norway and Sweden.
NextGen Nordics will bring together multiple stakeholders – the banking community, central banks, public authorities and business and commercial beneficiaries – to generate community debate, explore the benefits and offer practical advice on enabling the opportunities of new technologies in the Nordic region. Register for the event here.
68% of European consumers abandon financial apps upon onboarding
Norwegian AML and KYC company Signicat has published a study that shows that 68% of consumers in Europe have abandoned onboarding processes in the past year. According to the company, these are the worst results for financial service providers since the 2016 findings and down from 63% in 2020.
An “expectation paradox” was also found when comparing markets, which revealed that countries offering supposedly easier and faster onboarding experiences, due to digital identity systems like BankID, had no not necessarily lower dropout rates.
In fact, consumers in “more mature” digital identity markets were more demanding, less likely to tolerate a bad experience, and in some cases, more likely to abandon an app.
The Signicat report, The Battle for Integration: The Growing Power of Consumer Demandsfound that 30% of customers felt the application process was “complicated”, with the average time a consumer abandons an online application being 18 minutes and 53 seconds, seven minutes less than the 2020 results.
Ping Payments selects Sentinels for AML checks
Ping Payments has announced its selection of Sentinels to strengthen its anti-money laundering (AML) controls.
Sentinels’ AI-based solution tests new monitoring rules in a no-code sandbox and then deploys, tests and calibrates these new rules in real time. It also compiles all customer information into a simple profile that is immediately accessible with minimal training required, while providing large-scale transaction monitoring.
Petter Sehlin, CEO of Ping Payments, said, “With compliance in new territories and verticals being a prerequisite, combined with the reality that we had evolved beyond our in-house monitoring solutions, the decision to choose Sentinels was easy to take. Sentinels’ machine learning approach to monitoring transactions allows us to scale our business without being held back by inefficiencies. »
Joost van Houten, CEO of Sentinels, adds: “The financial services space has become increasingly difficult in recent years, making monitoring transactions much more complicated. The operational efficiency demanded in online marketplaces is vital to Ping Payments’ business. Sentinels is delighted to support such a critical requirement and ensure the company’s continued compliance with AML regulations. Ping Payments is also our first Nordic partner, which is another milestone for Sentinels. »
Arion Bank chooses Banfico OB Directory Plus to verify TPPs
Icelandic bank Arion has announced that Banfico OB Directory Plus will support its compliance process for open banking and PSD2 account access, in light of the full entry into force of PSD2 into Icelandic law in May 2022.
Kristjan Theodor Sigurdsson, technical product manager for open banking at Arion Bank, said: “Our partnership with Banfico will allow us to add an additional layer of security to our services by ensuring that third-party providers who connect to us have the license to perform the services they request, at the time they request them.
Kannan Rasappan, CEO, Banfico, adss: “As the number and volume of open banking transactions begin to take off and more data becomes accessible to third parties, banks must be ready to act before their reputations are at risk .”
Lunar offers 132 million euros to buy Instabank in Norway
Nordic financial challenger Lunar has made a cash offer of €132 million to acquire all shares of Norwegian digital bank Instabank.
Founded in 2016, Instabank now serves over 60,000 customers in Norway, Finland and Germany with secured and unsecured loans and savings.
The acquisition will significantly increase Lunar’s presence in Norway and also open the door to the Finnish market ahead of the launch of its full product offering. The offer follows the 2021 takeover of Swedish lending platform Lendify and Danish payment platform Paylike.
Ken Villum Klausen, Founder and CEO of Lunar, said, “We are excited to have the opportunity to acquire Instabank and together challenge, innovate and build a stronger Nordic entity that will benefit our customers.
The decision to acquire Instabank comes just weeks after Lunar raised €70m in fresh capital, a top-up to the Nordic challenger’s €210m Series D in July last year. The cash injection coincided with the launch of B2B payments for its professional clients and plans to develop a new crypto trading platform.
Danish split-payment startup Anyday raises €4m
Danish fintech Anyday has raised €4 million in seed funding to bring its BNPL-like split payments service to Scandinavia. Anyday’s split payment concept allows buyers to split the cost of a purchase in four, with 25% of the amount paid up front, no fees or interest and a high line of credit.
Over 1,000 online merchants in Denmark have already joined Anyday, with around 20,000 customers using the service. Now, the startup is looking to expand into the Nordic countries and set up in physical stores, via a virtual card and an app.
Jonas Overgaard, CEO of Anyday, says: “We want to become an omnichannel service for our merchant partners, not limited to online stores only, but also as an in-store payment alternative to give merchants the possibility to offer more payment solutions.
Swedish A2A Specialist Zimpler Raises New Equity Funding from Nordstjernan Growth
Swedish payments company Zimpler has raised new equity from Nordstjernan Growth. In 2021, the company celebrated its 10th anniversary and a 176% growth in transaction volumes.
This investment will allow Zimpler to continue its growth and accelerate the business development of the company by expanding its customer base and investing in the development of new vertical markets. It will also allow Zimpler to continue its march towards expanding its geographic network, both in Scandinavia and globally.
Nordstjernan joins previous Zimpler investors, including Inbox Capital and CNI, and becomes a minority shareholder. Zimpler will be the third holding in Nordstjernan Growth’s portfolio. FT Partners acted as exclusive financial advisor in the transaction.