Summer of Startups: Näktergal Magellan

Efma feature

24 August 2018

Based in Stockholm, Sweden, Näktergal Financial Technology provides a comprehensive consumer lending platform that can be configured to an organization. Erik Bennerhult, CTO of Näktergal tells Boris Plantier about the company’s fully digitized and automated end-to-end system for mortgage lending.

Näktergal provides a technical platform for mortgage challengers to compete against the four Swedish banks that have dominated the €310 billion (US$350 billion) mortgage loans market.

“The idea of Näktergal started with a demand. We had leading positions at a fast-growing Nordic small bank,” says Bennerhult. “Day-to-day work was characterized by managing requirements created by increasing regulatory pressure, a need for better analysis of existing stocks while business demanded new and improved products.

“The gap between the financial market needs and the support offered by the existing system suppliers grew at an ever-increasing pace.

“Tried and tested system solutions were, and are, struggling to meet the new requirements, especially the increasing focus on privacy and information security are hard to retrofit into existing systems built for other challenges. We decided to build the system we were missing.”

Magellan is a fully digitized and automated end-to-end system for mortgage lending, targeting a new wave of mortgage lenders as well as challenging Swedish banks.

“If you want to start a lender, you need capital, approval from the financial inspection and a system,” says Bennerhult. “Magellan, by superior technology, allows challengers to operate at significantly lower costs than the banks, thereby offering better interest rates while having much faster and more efficient application processes enabling them to take large volumes of ex-bank customers quickly. Our ambition is to lower the cost of living in Sweden by a third!

“We have recently signed our first challenger and are discussing with a few others. Our next stage is to get our first step up and running. Then we expect extremely rapid growth and a busy winter.”

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Keywords : Mortgage , Fintech

Geography : Sweden