How Northmill’s loan book performance is reaching new heights with Tink
Borrowers increasingly base their choices on personalisation and convenience – a key reason Swedish digital bank Northmill partnered with Tink in 2021. Adding our risk decisioning solutions, Northmill reaps the benefits of intelligent data categorisation in forecasting defaults – while lending responsibly.
Swedish digital bank Northmill gives customers a streamlined, digital experience in partnership with Tink and Visa
The intelligent data categorisation of Tink’s risk decisioning solutions helps Northmill forecast defaults effectively
Teaming up with Tink and Visa helps Northmill realise its mission to improve how people pay, save and borrow money – while enhancing its loan book
As the number of consumers gravitating towards digital banks grows, banks have an opportunity to accelerate innovation and stay competitive. Our latest data reveals that an estimated 44% of British 16–34-year-olds believe digital banks offer better digital tools and services*.
Tink’s partner Northmill has done just that – targeting this segment to meet the increasing expectation of flawless, digital experiences. By empowering its customers with tools that reveal actionable insight into their consumption, Northmill is the digital bank that goes a step further.
Streamlining the savings process
On a mission to simplify the withdrawal process for savings, Northmill teamed up with Tink in 2021. Using Tink’s technology, Northmill no longer needs to manually enter a receiving account’s details. This means that all its customers need to do is instantly, securely connect the bank account in which they wish to deposit savings. Tink and Northmill sort the rest by fetching account details in the app – without needing to bother the customer. Nearly a quarter of all transfers via Northmill's savings accounts run on Tink technology.
Levelling up credit model performance
Building on the success of its saving-focused collaboration with Tink, Northmill looked to improve its risk decisioning models in 2023. Identifying the need to assess its applicants’ repayment capacity, enriched data proved an effective tool. Tink’s risk decisioning solutions to be precise – the simple, smart way of getting verified financial insight while offering customers faster time to money.
By implementing our risk decisioning and affordability products – Tink Income Check and Tink Expense Check – Northmill gets a full understanding of the applicant's repayment ability. This means being able to validate their affordability based on the date, size and stability of incomings and outgoings. Tink Risk Insights then helps Northmill seamlessly determine risk exposure at the time of the customer’s application. In other words, ensuring a clear understanding of their financials and potential ‘risky’ patterns.
Using these products has led to Northmill significantly improving its default predictions for credit card applicants. And the cherry on top? A positive impact on what matters most in future-proofing Northmill’s business: their loan books.
An evolving partnership with Tink & Visa
Northmill has been in close partnership with Visa, Tink's parent company, for several years to streamline its business. By accessing Visa’s extensive toolbox – a global payment network, broad expertise and strong local presence in the Nordics – Northmill has enhanced its understanding of the payments industry, driven usage of Northmill cards, and got closer to its customers and their needs. And now entering the next era of financial services with Visa and Tink, Northmill embraces the opportunity to leverage enriched transactional data and open banking solutions.
"At Northmill we want to improve how people pay, save and borrow money. Our partnership with Visa and Tink allows us to provide a seamless customer experience," says Pawel Firut, Northmill’s Chief Product & Technology Officer.
"In addition to this, Tink’s risk decisioning products had a proven effect on elevating the performance of our credit models – which is crucial for a healthy loan portfolio."
To learn more on leveraging Tink’s income and affordability assessments and risk decisioning solutions for lenders, get in touch with our team.
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