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Kraft Bank: The fastest Norwegian bank launch with the lowest start-up costs

Tieto’s end-to-end automated lending solution with adaptable and efficient digital services helps Kraft Bank support people in financial difficulty

Ulf Hagen

Senior Sales Manager, Credit Solutions & Services, Norway

The challenge

Kraft Bank had a short timescale for launching its bank in Norway and required a lean and agile core banking system for consumer credit and deposits.

The solution

Tieto’s flexible software simplifies the complete origination and administration process for lending and deposits, with a powerful algorithmic engine built into the system. The solution connects easily with third-party providers and is adjustable to meet Norwegian regulations.

More about the solution

About the customer

Kraft Bank is a newly established bank in the Norwegian market for the refinancing of housing loans and consumer credit. The bank helps clients who find themselves in financial distress, by finding them refinancing solutions, and helping them maintain a healthy financial position.

Kraft Bank's website
Adaptable software services that grow with the bank as it develops, while easily enabling integration with third parties.

Flexible solutions delivered at speed

Adaptable software services that grow with the bank as it develops, while easily enabling integration with third parties.

A well-established and proven banking solution gives the newly established Kraft Bank added credibility.

Strong track record

A well-established and proven banking solution gives the newly established Kraft Bank added credibility.

An effective and easy-to-use banking system enables Kraft Bank to respond quickly to customers’ needs.

Customer efficiency

An effective and easy-to-use banking system enables Kraft Bank to respond quickly to customers’ needs.

A flexible core banking solution for the modern age

Through an efficient and agile banking system, Kraft Bank supports those in financially difficulty and helps create better financial health. Because of the bank’s more vulnerable customer base, some processes need to be manual and more personal, while others can be automated to increase efficiency. It was essential to have a system than can be adapted easily as the business matures.

The solution has also been easy to integrate via APIs to other systems, which is very different to the other banking solutions known to Kraft Bank in the Norwegian market.

The speed of delivery that was required for the new bank to launch would not have been possible with an old-style banking system. From project initiation, the lending solution was in place in under three months, with the deposit solution launched six months later, ahead of plan.

Tieto was able to provide us with a highly flexible core banking system and a competent team to help build it, at a fair cost. This meant we were able to set up a banking operation in the shortest time ever in Norway. This has also been done at the lowest cost of any start-up bank this millennium. Kraft Bank will be profitable after fewer months of operations than any known bank in our market.

Svein Ivar Førland

CEO, Kraft Bank

Collaboration and communication

With a short timescale for launch, excellent collaboration and communication between Kraft Bank and Tieto was key. A small core team at each end worked face-to-face in the early days, to gain a greater understanding of each other and form personal connections. This made the start-up process for the bank smooth, with good ongoing communication. Both teams are continually focussed on finding solutions rather than problems.

Market-leading results

Kraft Bank has delivered on all promises made to investors at the beginning of 2018, and has processed more than double the expected number of loans.

Within its first seven months of operation, Kraft Bank has helped approximately 130 customers, many of them saved from foreclosure on their family home. Within these seven months it processed 362 million NOK in loans, and in just one and a half month of operating a deposits service, it received 173 million NOK.

Kraft Bank will go from start-up to profitability within one year.

The relationship between Tieto and Kraft Bank will evolve as we grow together. The banking solution will develop to make more processes automated where we can, combining this with Kraft Bank’s personal service where it is needed most. This is why an easily adaptable solution is core, to enable us to best support Kraft Bank over the long term.

Jonas Brännvall

Credit Products & Services Director, Tieto

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