The Danish banking app Lunar is now focusing on business banking and has provided 2,000 users with early access to its business accounts.
For €265 per year (DKK 1,980), the customer is given access to Lunar’s brand new business account. The Lunar “business” option is a digital account with a Visa card, access to a number of accounting programs as well as loans and payment services and loans through Apple Pay, Google Pay.
First, Lunar is going to offer this product in Denmark with spreading to other Nordic countries soon.
The Scandinavian region has not seen the intense business banking competition known from larger markets. According to the European Commission’s SBA fact sheet, there are 1,5 million SMEs across Denmark, Sweden, Norway and Finland.
Ken Villum Klausen, founder and CEO, said to this: “There is a huge appetite for business accounts, and our ambition is to move up in segments fast.”
“The business product will be one of the big revenue streams in Lunar and we’ve given early access to 2,000 users and close to 90% has been monthly active users and willing to pay the subscription upfront.”
So far, the Nordic challenger bank has won over more than 175,000 users in Scandinavia and has offices in Aarhus, Copenhagen, Stockholm and Oslo.
To secure a smooth launch of the product, Lunar hired Jacob Faber as Head of Lunar Business. He joined Lunar from Nordea Business banking where he served as Head of Startup and Growth. Lunar also made several new AML hires to cater for the new segment.
Faber himself commented on this: “Compared to the larger European economies it is a small market, but the Nordics is also one of the world’s most profitable banking markets.”
“No doubt we will see more competition, but for now the defensive Nordic infrastructure requires a Business account that can be easily connected to the public payments setup. That’s why offering national accounts is inevitable to get a strong presence in the local markets,” he added.