kompasbank is a Denmark-based neobank for SMEs that began operating in full in January 2022 and currently operates in Denmark, Germany and Spain. We interviewed its Founder and Co-CEO Michael Hurup Andersen to learn more about this exciting new player in the banking industry.
In which countries do you operate and how do you perceive the banking offer to SMEs there? In your opinion, does the offer from existing financial institutions meet the needs of SMEs?
The SME segment comprises more than 99% of all Danish companies, but they do not have sufficient access to financing (business lending/loans and capital).
We believe existing banks are doing a fine job, but just not enough. The sheer size of the market and the swiftly developing needs of the SMEs are creating substantial opportunities for us to own marketshares.
We have created kompasbank to help SMEs reach their full potential. We do so by providing SMEs with flexible, fast access to financing and other banking services when they need it. And by helping them control, run and grow their businesses through digitization and access to our platform services, where they have access to digital solutions within administration, HR, Sales, Marketing, Legal etc.
We began our journey in Denmark, and we are now in the process of rolling out our concept and platform to other parts of Europe, where we are also experiencing a great demand for a dedicated SME bank that can offer flexible, tailored solutions that match the needs of SMEs.
What is your business model and your core value proposition for SMEs?
Our business model is simple: we offer a safe, financially guaranteed way for private customers to deposit their savings at attractive interest rates, while we utilize the deposits to offer financing solutions to SMEs enabling them to reach their full potential.
We have built our bank from scratch to avoid rigid legacy and heavy decision-making processes. We have freed ourselves from the processes and structures of the past in order to develop a bank that matches the needs of companies – and not the bank's premises.
Our platform is, as the first in Denmark, 100% serverless and 100% cloud-based. The independent infrastructure enables us to develop new products and services faster at lower costs. This provides certain opportunities for scalability.
In other words, we have pushed the boundaries of what banking means and what to expect from a bank. For instance, we respond to loan applications within 48 hours, and we help SMEs optimize their businesses through digitization and access to our platform services.
How’s the experience at kompasbank different compared to other players? What are the unique features you offer to your customers?
We strive to become the preferred bank of SMEs and their prime growth enabler in Europe. We will do so by continuing to scale and develop our banking platform, and this will encompass the following aspects:
• We are aware that time matters. Just 48 hours after our advisers have clarified a company's specific situation and needs, we can be ready with a tailored solution. This means that companies can get help with financing as soon as an opportunity arises.
• We offer a supplement to our customers’ existing bank, which means we are willing to collaborate with the existing operating bank.
• We have a team of business advisors across the country who visit our customers at their premises to truly get an understanding of the business and to provide the most competent advice.
• We tailor our solutions to each customer, and I more often hear customers describe us as a partner than their new bank.
• We help SMEs control, run and grow their businesses through digitization and access to our platform services.
We have combined the best from two worlds. The benefits from our digital banking platform with the physical presence of our competent business advisors.
Being a banking provider without physical branches, customers only interact with you remotely. How do you ensure an excellent sales and service model leading to a great customer experience with interactions being 100% digital?
We have combined the best from two worlds. The benefits from our digital banking platform with the physical presence of our competent business advisors.
Our physical presence allows our business advisors to meet the customer at their premises to get the best understanding of their businesses and needs. And by being digital, we are able to respond to loan applications and handle credit applications faster, and to provide advisory based on data and insights. In addition, we are able to develop new products and services faster at lower costs.
Where do you see kompasbank in five years? What impact or difference are you trying to achieve for small business owners in your portfolio?
In five years, we will be the preferred bank and the prime growth enabler for SMEs in Europe. We have scaled our business across Europe, we have expanded our services and product portfolio and created a universe dedicated to SMEs, where they can find the help and support they need to grow their businesses.
Can you specify some major milestones accomplished on your bank’s journey?
In March 2021, we received our banking licence and were ready to operate. Since then we have grown from 10 employees to more than 80 in just two years; we have built, launched and developed our digital B2B marketplace, kompasbank navigator; and we have scaled our business to countries outside Denmark.
