Danish neobank Lunar Way has secured EUR4.2 million in new funding led by Seed Capital Denmark, as it prepares for a full-scale launch.
Following a well-established trend started by Simple, Lunar Way is promising to bring slick, digital banking services to millennials, while outsourcing the regulatory hassle to partners.
The new bank, which is running in a beta phase in Denmark, has struck a deal with the country's largest mortgage provider Nykredit to provide the back-end processing for its banking services. The incumbent banking partner has also taken a minority interest in the startup.
Similar banking relationships have also been lined up in Sweden and Norway, the firm says, claiming that 23% of its beta users have already closed their old bank account in favour of using the startup's mobile-only service.