The lending provider Froda has teamed up with SME neobank Juni to offer financing products to Juni’s users. The two Swedish companies describe it as an ‘embedded finance’ partnership (Froda). And while I know a few more people who would agree with this statement, personally, I consider it only embedded finance when the frontend solution is a non-financial brand. Juni is obviously a fintech, so why did I still cover it?
I have came across Froda the very first time earlier this year. While the company does have a direct offering for SMEs to apply for finances, it has created an internal team to focus on partnerships. So far, the company has partnered with fintech and fintech-y providers to embed their financing products. There are at least a handful of embedded lending providers with a strong track record working with non-financial brands. However, many of them focus on the UK or the big European countries. Froda appears to be one of the firsts to take this model to the Nordics. Surely, their competitors from the UK and central Europe are eyeing at the Nordics as well, so it will be interesting to see who can score more non-financial brands as customers.
