Lunar buyer says challenging power
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What’s the matter?
Lunar wants to buy Instabank for DKK 1.29 billion. With the board, management and the largest shareholders on the team, everything speaks for the Danish challenger bank to get its way.
The CEO Ken Villum Klausen justifies the acquisition with three main points: Instabank has delivered good growth figures and good profitability, with a small and efficient organization.
The bank’s investment in secured loans, ie refinancing of expensive debt with a mortgage on a home, has every chance of becoming Lunar’s alternative to a home loan product.
Last but not least, the Lunar Buys Volume. With Instabank’s customers, the Norwegian customer base increases by well over 50 percent. In addition, Lunar gets a foothold in the Finnish market, where the bank is currently not present.
Why is this interesting?
After the Competition Complaints Board gave the green light for DNB’s acquisition of Sbanken, a number of companies have begun to position themselves to fill the void that will arise at some point.
The decision brings the challenger banks that have been in the shadow of Sbanken to light, said Lunar Norway’s CEO, Eilin Schjetne, already on the same day as the tribunal’s decision became known.
What is the consequence?
With the acquisition of Instabank, Lunar is seriously signing up as one of the new players struggling to capture the interest of those who are considering leaving Sbanken.
The bank is still lagging behind in some heavy areas. Mortgage rates are the most important thing when people change banks, according to Cicero Consulting’s Stefan Astroza. In this area, it is Bulder Bank that has managed to position itself as the leading challenger.
“Had Lunar been able to offer home loans as of March 16, I think they would also have had the opportunity for an almost exponential growth,” Astroza told Shifter when pointing to the alternatives to Sbanken.
Within fund saving and stock trading, the company is better off, but has far from the same offer or is just as well known as Nordnet and Kron. The fund offer is very meager while Lunar actually offers trading in over 500 shares directly in the app. It is a mix of the most popular activities in the UK, Germany, USA, Sweden, Denmark and Norway.
As a user-friendly app bank, on the other hand, is a better location. Already in last year’s major mobile banking test, the app received the reputation «among the best at the intersection of functionality / design», despite clear shortcomings in the product range in the hallway.
Lunar also has an ace up its sleeve as soon as the clarifications with the Danish Financial Supervisory Authority are in place. Earlier this year, Lunar launched a crypto platform in Denmark. When it comes to Norway, it will certainly be able to attract a customer group that is not just defectors from Sbanken.
Related issues
→ (+) Dtherefore, Lunar will buy Instabank
→ (+) Expert: These are the best alternatives to Sbanken
→ – A really good day for Norwegian consumers
→ Lunar launches crypto platform in Denmark