Strong start for Denmark's new business bank

kompasbank, Denmark’s newest bank, has opened its doors over the summer and has been well received by the market. The bank has already granted loans ranging from DKK 1 to 10 million to several small and medium-sized enterprises (SMEs). This positive reception is partly due to the bank’s simple concept and dedicated focus on easing access to financing for the SME sector.

Small and medium-sized enterprises often struggle to secure financing and rarely receive the same level of service from established banks as larger companies do. kompasbank aims to address this market need. According to founder & co-CEO Michael Hurup Andersen, the launch of Denmark’s new business bank has exceeded expectations:

“I am very overwhelmed by the reception kompasbank has received in the market from Danish SMEs. We clearly see that there is a need and interest in our concept. We are therefore very pleased that, even in August, we are able to assist several dynamic Danish businesses in industries such as manufacturing, wholesale, and logistics in fulfilling their growth ambitions. This is good for the businesses, but also for the economy and job creation.”

Swimming against the current

kompasbank, focused on tailoring financing solutions for SMEs, has opted not to develop the traditional full-service portfolio of banking products. Therefore, kompasbank should be seen more as a supplement to companies’ primary banking relationships rather than a competitor. This approach has opened doors for many businesses that need capital to enhance their competitiveness but do not want the hassle and time required to switch banks to secure a business loan quickly.

“We have approached businesses with a very sharp focus on providing them with financing solutions on their terms, and we have emphasized that we are an alternative to their existing bank. Not as a replacement, but as an additional bank that can offer them more and more diverse loan options. Nothing is more disheartening than a good idea or plan that fails to materialize because of a lack of access to capital,” says Michael Hurup Andersen and continues:

“It’s easy for businesses to understand that because we have a simple product catalog and are not constrained by sharing technological infrastructure with other banks, we can afford greater specialization and offer a more customer-oriented approach. In this way, you could say we are swimming against the current, as many other banks attempt to standardize customer relations with SMEs, while we bring them even closer with more personalized and local advisory.”

Own digital infrastructure

kompasbank stands out from more traditional banks by having developed its own digital infrastructure, which streamlines and enhances all aspects of its business. The platform, becoming the sixth banking platform in Denmark, has lower costs and is more adaptable than existing platforms. This allows the bank to integrate and utilize data in a radically different way, while the absence of branches and slow, cumbersome systems enables the bank to prioritize local presence and fast delivery.

The first customers of kompasbank have secured business loans for automation solutions, property purchases, and other capital investments. The loans are funded by deposits from private customers, with kompasbank being one of the few banks in Denmark to offer customers a savings account with a positive interest rate.