Minna Technologies Raises $18.8M for Banking Subscription Management
As the number of subscription-based services grows and our lifestyles become increasingly reliant on digital platforms, the need for effective subscription management is becoming more apparent. However, many traditional financial institutions lack the tools to address this demand. Minna Technologies offers a solution, integrating its subscription management services directly into banking applications.
The company has recently secured $18.8 million (€15.5 million/£14 million) in Series B funding led by Element Ventures, MiddleGame Ventures, Nineyards Equity, and Visa, to broaden the reach of its open banking technology to banks worldwide.
Established in Gothenburg, Sweden in 2016, Minna empowers customers to oversee their subscription services through their current banking app. The platform allows users to cancel subscriptions directly within their bank’s app, automating the process and severing data and financial connections with the merchant. Furthermore, Minna alerts customers before trial periods expire and streamlines the process of switching utility providers, helping them identify more favorable options. Minna currently collaborates with financial institutions including Lloyds Banking Group, Swedbank, and ING.
Minna’s technology helps to decrease the volume of calls to a bank’s customer service centers, and banks can also generate revenue through Minna’s facilitation of utility switching, potentially transforming them into marketplace platforms.
The emergence of Minna indicates that the initial wave of digital-first banks will likely be followed by a second wave of complementary services like this one. Currently, the typical European consumer spends approximately £301 (€333) each month on 11 subscriptions, a figure projected to rise to £459 (€508) on 17 subscriptions by 2025. IDC forecasts that by 2050, half of the world’s largest companies will concentrate the majority of their business on digitally-enhanced products, services, and customer experiences. The subscription model is even being adopted by automotive manufacturers, such as Volvo.
Joakim Sjöblom, CEO and co-founder of Minna Technologies, stated: “The subscription economy has experienced significant growth over the last four years, expanding beyond services like Spotify and Netflix to include items like iPhones and automobiles. Consumers are finding it increasingly challenging to monitor their payments, and banks are struggling to manage cancellation requests. Minna’s technology enhances the process for banks by simplifying it, while also delivering a highly sought-after digital product that customers are beginning to anticipate from their financial providers.”
Sjöblom explained that by collaborating primarily with established banks, Minna is equipping them to compete effectively against newer challenger banks.
Pascal Bouvier, managing partner at MiddleGame Ventures, commented: “We are confident in a future where banks evolve their checking account offerings into “connected and intelligent” platforms, enabling retail clients to engage in a wider range of interactions than they have in the past.”