Danish banking app Lunar Way is one of a plethora of startups in Europe attempting to update the retail business experience with a mobile-first offering. However, rather than getting a business license of it’s private — à la challenger banks so as Atom, Monzo, Starling and Tandem in the U.K.The Danish group is a co-worker with regional banks in the countries it operates in, a plan it believes has enabled it to get to market and innovate faster.
To get ready for a full ship, Lunar Way is disclosing €4.2 million in extra funding. Leading the charge is SEED Capital Denmark, along with some unnamed angel investors. I also know that associate bank Nykredit (the biggest mortgage lender in Denmark) is also a minority shareholder.
Aiming to build a banking framework for the “Snapchat generation. Lunar Way’s terms, not mine — the startup extends a mobile banking app that lets you open a business account, get a debit card powered by MasterCard, receive a real-time transaction feed of your spending, inspect your purchases by shopping category or retailer, and more. You can also set saving goals through the app, and pay bills.
“The incumbent banks are trying to be all for everybody – and with those distributing standard products for their users. Those products need a long processing time, physical contracts and even the odd appearance in a branch,” says Lunar Way founder Ken Villa Klausen.
“At Lunar Way we want to build a full-blown mobile solution, where you’re able to do everything instantly. That involves signing up, creating various accounts and cards, appealing for loans and credits – and also mortgages as we evolve. Also, we’re re-engineering these economic outputs for the time we live in today, with subscription-based overdrafts and product loans to name a few”.
The Klausen states that so greatly the typical user is 24 years old and is the kind of person who is ready to cut relations with the bank they inherited from their parents. Furthermore, 23 percent of Lunar Way’s beta users has joined their old bank account, thus keeping Lunar Way as their first banking service. He also shows me that 85 per cent of its users follows the startup on Snapchat!
“Currently we are the particularly active challenger in the Nordics, so the bulk of the contest is from incumbents and local banks,” adds the Lunar Way founder. “The banking aspect in the Nordics is well-developed, with national identification schemes and unions to the tax authorities, but all of the incumbent’s outputs and applications are the equal, and there has never been an actual option to the traditional banks.”