The startup has recently launched Lunar Way Payback, an app, where new and current clients can earn up to 2% on their money.

The concept has proven to be successful after operating for a few months, as customers are tired of 0% in interest, fees for having the account, and inflation – these are all factors that might motivate bank clients to find another solution.

“Today, most banks are organized in such a way, that the consumer is the loser and the bank the winner. […] The gap between bank and customer has simply grown too wide,” says CEO and founder Ken Villum Klausen.

However, Ken also highlights that the new concept is only a small piece of the bigger puzzle:

“Lunar Way is built on a technology that can solve many of the tasks that traditional banks need hundreds of employees to solve. And since we don’t have any expenses on physical banks and administration, we can live up to the demands many modern users have today for transparency in regards to pricing, availability through our app and presence through our customer service, that has the best reviews in the business.”

Lunar Way experienced an increase of users in 2018 and it currently has 6 000 users on average every month in Denmark and Sweden, and the number is rapidly growing.

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“The world as we know it today will look remarkably different in a few years. The Nordic countries are well known as first-movers within the cashless socieity conversation. To create the next generation of banking and live up to the standards of the Scandinavians, we need to partner with the best within their respective field. In Denmark we have now chosen our future partnerbank, which is Nykredit.”
Explains Ken Villum Klausen, CEO of Lunar Way

When asked to explain why Lunar Way follows the neobank path, rather than applying for a licence and taking the more common route of the challenger bank, he says:

”We believe the neobank model is the best way forward. Put simply, the incumbent banks excel at regulation. We excel at providing the best mobile user experience. It’s a perfect match.”

He epmhasises that challenger banks pay well to obtain their banking license, and they need to learn the classic banking skills to make the backbone of their bank work. With an approach of partnering instead, they can draw on their skills, allowing them to focus on their skills.

“While the normal neobank setup involves a third party platform provider, which makes the risk of cost increases a lot higher, we work directly with the banks, so there’s no middle man. This means our partner model provides stability, security and experience in all the important areas, while providing innovation and customer centric design where you want it, at the front end.”

”This is where our partner model is unique. We’re the only one in the market built upon partnering with multiple local partners. This means a Swede will have a Swedish account, a Dane will have a Danish account, a Norwegian will have a Norwegian account – all through the same interface, the Lunar Way app. And there will be no ”middleman” costs. Both parties win – partner banks, consumers and Lunar Way.”

Lunar Way’s official target is to reach 85.000 Nordic users in 2016, and then to expand outside of the Nordics in 2017. They are currently running in an FCA approved beta phase in Denmark. You can visit certain websites and learn more about managing finances

The local waiting lists are open at www.lunarway.com, and those who sign up early will be the first to get an invitation upon launch.

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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.

“I’m obviously very interested in the Fintech and with my background, but this was a unique service that solves the user experience for the intended audience. And the team was very driven. I have met many startups and I can see when they have the right focus”, said Tuva Palm, who besides Nordnet has a past at Klarna.

The startup, which is backed by Seed Capital, has signed up a partner bank in Denmark for a Spring launch. With plans to launch in Sweden and Norway by the end of the year, it hopes to have reached 85 000 Scandinavian users in 2016 before expanding throughout the rest of Europe.

Users will get access to a MasterCard debit card and an app that offers an overview of accounts and transfers, and let them deposit money, pay bills and login via Touch ID.

“We are creating a brand new concept, nothing like what you’ve seen before in Denmark, and that’s why we’re glad to have a solid board made up of experienced business and financial members.” says Ken Villum Klausen, CEO, Lunar Way.

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