Minna Technologies, a Gothenburg-based Swedish fintech which delivers subscription management services to banks such as Danske, Sparebank1, ING and Lloyds has raised £14M funding led by London-based fintech specialists.
Eyes to expand innovative open banking tech
Today, Minna Technologies raised €15.5M (nearly £14M) Series B funding round led by Element Ventures along with support from MiddleGame Ventures, Nineyards Equity and Visa. With this Series B funding round, the overall investment raised by Minna Technologies exceeds €23M (nearly £20.8M).
The subscription management tool will use the investment to expand its innovative open banking technology to banks across the world. Also, it will let the company scale its technology and bring its services to more customers across the world.
Joakim Sjöblom, CEO and co-founder of Minna Technologies, said: “Minna’s tech improves the procedure for banks by simplifying the process, as well as providing an in-demand digital product that consumers are starting to expect from their financial institutions. This new funding will help us take Minna across the globe to reach more banks and customers than before, and we look forward to working with Element Ventures to achieve our next period of growth.”
Michael McFadgen, Partner at Element Ventures, said: “Joakim and the team at Minna are doing exactly that, by providing banks with the tech they need to manage the millions of subscriptions their customers have, whilst bringing the switching service in-house to provide additional revenue streams. This is a clear example of the liberating services Open Banking promised us and we’re excited to be part of this journey with Minna.”
Pascal Bouvier, Managing Partner, MiddleGame Ventures said: “We are delighted to partner and invest in Minna Technologies. We strongly believe in a vision where banks develop their checking account offerings into “connected and intelligent” platforms and where retail clients are able to interact in many more ways than in the recent past. Minna delivers this future and allows banks to offer a rich subscription management offering for our digital lives.”
Minna Technologies has partnered with European retail banks including Swedbank and ING. Eventually, it has saved over €40M (nearly £36M) on behalf of the bank’s retail customers. Also, Minna has partnered with Lloyds Banking Group, which extends its in-app journey enabling customers to easily and simply manage their subscriptions in just a few clicks, whenever and wherever they want. Minna’s tech is the next-generation in personal finance after neo-banks as it lets customers improve their financial health by real actions.
Growth in subscription economy
The demand for Minna’s product has escalated as there is a growth in the subscription economy, which has increased over 350% since 2012. This is possible with the rise in the use of online streaming, entertainment platforms, on-demand shopping platforms and app services.
Minna’s technology reduces the burden on a bank’s call centres when it comes to dealing with customer inquiries, thanks to its integration with Visa which means it can stop payments from cards. Banks can also benefit from Minna’s role in facilitating utility switching, providing them with an additional source of revenue.
Despite the growth of online subscriptions for products as diverse as food delivery boxes or on-demand entertainment, Minna Technologies lack the tools available to manage them but its product allows consumers to terminate a subscription at the click of a button, saving them hundreds of euros on average a year.