Minna’s technology empowers bank customers to take control, manage and switch personal subscriptions within their banking app
The software tool dramatically improves the digital banking experience and customer engagement for 20 million users
The subscription economy is on the rise: people are spending on average £301 (€333) month on 11 subscriptions, expected to increase to £459 (€508) a month on 17 subscriptions by 2025
Customers include Lloyds Banking Group (LSE:LLOY), Swedbank (OMXS:SWED) and ING (NYSE:ING)
The subscription management software tool Minna Technologies has raised €15.5m (£14m) in Series B fundraising led by Element Ventures, with support from MiddleGame Ventures, Nineyards Equity and Visa, to expand its innovative open banking technology to banks across the world.
Founded in Gothenburg, Sweden in 2016, Minna enables customers to manage subscription services via their bank’s app. Instead of spending hours on the phone or going through web pages trying to cancel a subscription, Minna can terminate it at the push of a button. This ensures that no extra money is taken from the account as well as cuts the data ties between the merchant and customer. The platform can also notify customers when a free trial is about to end to prevent them from being charged, and facilitates utilities switching to help customers find better deals.
Through partnerships with European retail banks including Swedbank and ING, Minna has saved more than €40m on behalf of the bank’s retail customers. In addition Minna have now partnered with Lloyds Banking Group. Lloyds Banking Group is extending its in app journey which enables customers to easily and simply manage their subscriptions in just a few clicks, whenever and wherever they want. Minna’s tech represents the next generation in personal finance. If neo-banks were the first wave, giving customers insights with payment categorisation, then Minna is the next wave providing ways in which customers can improve their financial health by real actions, not just insights.
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. The average European is spending £301 (€333) a month on 11 subscriptions, which is predicted to increase to £459 (€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. Subscriptions are also moving up the value chain, something we’re starting to see already with companies like Volvo, which recently launched a subscription service in the UK, with monthly payments starting from £559 (€618), including a car, servicing, maintenance and in-car Wi-Fi.
However, attempting to end a subscription can be time-consuming for the consumer and costly for banks in terms of the hours spent on the phone attempting to cancel a continuous payment. 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. A tool like Minna’s also sets the stage for banks to develop their digital banking offering into a marketplace. Hosting different products and services within one ecosystem is one way to encourage customers to engage more with their bank. As customers demand more from their banks than ever, 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.
The new Series B funding takes the total Minna Technologies has raised so far to over €23m (£20.8m). The funding will allow the company to scale the technology and bring its services to more customers across the world, with requests from all continents.
Joakim Sjöblom, CEO and co-founder of Minna Technologies, said:
“Over the past four years the subscription economy has exploded from Spotify and Netflix to even iPhones and cars. It’s becoming increasingly difficult for consumers to keep track of the payments and harder for banks to handle inquiries to shut them down. 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.”