Northmill receives banking licence from Swedish Authority
Neobank Northmill has received its banking licence from the Swedish Financial Supervisory Authority (SFSA).
Under the Banking and Financing Business Act 2004, Northmill will now become an official regulated bank, two years after it first submitted its application.
The neobank says it’s had a “constructive dialogue” with the SFSA, and is now excited to add product offerings such as saving accounts, cards, and payments transfer to its existing suite “in the near future”.
“The banking license means a great responsibility and it is gratifying to see that Sweden and its authorities foster innovation,” says Northmill’s board chairwoman Margareta Lindahl.
She adds: “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.”
For Lindahl, Northmill’s mission is like many other neobanks starting up today – it’s “to simplify people’s financial lives through technology and innovation”.
The challenger’s most recent product, Rebilla Reduce, aims to lower people’s current interest rate on existing credits.
With 200,000 users already, Northmill has until now operated as a consumer credit institute and registered payment service provider under the SFSA.
Northmill must now make sure it has an initial capital minimum of €5 million, maintain this capital base going forward and hold a buffer to avoid dipping beneath it.