(Reuters) – Digital banks including Chime, Varo and Current have won over more U.S. customers during the coronavirus pandemic by processing stimulus payments quickly, setting them apart from traditional banks and generating valuable word-of-mouth referrals.
Read more here.
Minna Technologies, a Gothenburg-based subscription management software tool, empowers bank customers to take control, manage and switch personal subscriptions within their banking app. This software tool claims to improve digital banking experience and customer engagement for 20 million users. Recently, the startup has secured funding of €15.5M.
Minna wants to expand globally
Minna Technologies bagged Series B funding in a round led by Element Ventures along with the support from Nineyards Equity, MiddleGame Ventures, and Visa. With this round, the overall funding secured by Minna goes to €23M. The Swedish company will use the investment to expand its open banking technology to global banks. In addition to scaling its technology, Minna will bring its services to more users all over the world as there is a demand for its tech from all continents.
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: “At Element Ventures, we back bold firms that are revolutionising financial services. 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.”
Customers control their subscriptions
Founded in 2016 by Joakim Sjöblom, Jonas Karles, and Marcus Lönnberg, Minna Technologies provides world-leading subscription management solutions to retail banks across Europe. Its customers are claimed to save over €40 million. Minna enables customers to manage subscription services via their bank’s app. They can terminate a subscription just at the push of a button. The platform can also notify customers when a free trial is about to end to prevent them from being charged and helps them find better deals.
The Gothenburg startup has partnered with Lloyds Banking Group. It is extending the in-app journey, which lets customers easily and simply manage their subscriptions in a few clicks, whenever and wherever they want.
Usually, ending a subscription could be time-consuming and expensive for banks but Minna Technologies plays a major role here by reducing the burden on the bank’s call centres. As per the company, a tool like Minna sets the stage for banks to develop their digital banking offering into a marketplace. Furthermore, it is claimed that Minna’s technology offers a new way for legacy banks to offer enhanced digital services and retain their customers in the face of encroachment from challenger banks and big tech.
Growth in digital subscriptions
Demand for Minna’s product has escalated as a result of the growth in the subscription economy, which has increased over 350% since 2012 thanks to the rise of online streaming, entertainment platforms, on-demand shopping platforms and app services. As per reports, an average European spends €333 a month on 11 subscriptions. This is estimated to increase to €508 a month on 17 subscriptions by 2025. IDC predicts that by 2050, 50% of the world’s largest enterprises will focus the majority of their businesses on digitally enhanced products, services and experiences.