When Data Meets Empathy: How Qred is Reshaping SME Financial Landscape in Europe

The transformation of the financial services landscape continues to accelerate, with fintech companies leading the charge in reshaping how businesses access capital. In this rapidly evolving environment, Qred Bank stands out as a remarkable example of successful evolution from an innovative fintech startup to a fully licensed bank, all while maintaining its mission to serve the underrepresented small and medium-sized enterprises (SMEs) across Europe.

The Journey from Fintech to Bank

Qred's journey began in Sweden in 2015, when three entrepreneurs founded the company with a vision to serve small businesses left behind by traditional financial institutions. Since then, they've expanded consistently through Europe, launching in Norway in 2022. 

Their expansion is fascinating because they've adapted to each market's unique challenges. Kristina, Qred's Norway Country Manager, explains that some markets present data access hurdles, while others, like Norway, reveal unexpected behavioural challenges. In Norway specifically, SMEs exhibit strong scepticism toward taking on debt, especially from non-traditional lenders, making trust-building and market education essential to their strategy.

A pivotal moment in Qred's evolution came in 2023 when they secured a full banking license in Sweden. This transition significantly enhanced their business model, enabling them to fund lending through their deposit accounts rather than relying on third-party funding. 

The bank license brought undeniable benefits, particularly building trust with cautious Norwegian businesses. However, Qred has maintained its commitment to being a different kind of bank that addresses the glaring disparity where SMEs constitute 99% of all European companies, contribute 36% of taxes, yet receive only 1% of the banks’ funding (unsecured business loans < SEK 2.5m)funding, says Kristina.

How QRED Transforms SME Lending 

Their approach to flexibility and personalisation distinguishes Qred from traditional financial institutions. While lending is fundamentally transactional, Qred has successfully humanised the process by combining sophisticated data analytics with genuine human connections. They've accumulated a decade's worth of data that helps predict customer behaviour and understand the distinct needs of different business types. This data-driven approach is complemented by something surprisingly simple yet increasingly rare in financial services: customer conversations. From the first interaction through the final repayment, Qred maintains continuous dialogue, tailoring loan terms to fit business needs rather than forcing businesses to adapt to rigid lending structures.

The company's approach to regulation and compliance is equally refreshing. Rather than viewing regulatory requirements as obstacles, Qred has integrated compliance into its operational foundation. Their flat organisational structure encourages ownership and cross-functional collaboration. At the same time, their intentionally diverse hiring strategy – balancing traditional banking experience with fintech and entrepreneurial backgrounds – ensures they maintain both innovative thinking and regulatory rigour. 

Proactively staying ahead of regulatory changes has transformed potential limitations into competitive advantages.

The Future Vision 

Looking toward the future, Qred continues to evolve its brand while staying true to its core mission of empowering entrepreneurs with the right financial tools. Their journey from fintech disruptor to licensed bank hasn't diminished their agility or innovative spirit but has instead enhanced their capacity to reach more small businesses across Europe. Through strategic partnerships and cross-market collaboration, they aim to scale their impact while maintaining the personalised approach that has been central to their success thus far.

About Qred:

Traditional banks? Slow, complicated, and full of roadblocks. Qred? Fast, flexible, and built for small business owners who don’t have time for bureaucracy. 

We started in 2015 because small businesses simply deserve better. While banks buried entrepreneurs in paperwork, we built financing solutions that actually work - quick, simple, and designed for doers. 

Now, we’re a market leader across Northern Europe, helping businesses get the funding they need to grow, without the headaches. Whether it’s a business loan or a company Qredit card, we move at the speed of our customers’ ambitions, because their success can’t wait - and neither should their business funding. 

• 50,000+ entrepreneurs supported 

• 10 new jobs created every day 

• Top-rated on Trustpilot 7 markets 

We’re not just another bank. We’re the bank that actually gets it done. Ready to grow with us? We’re always looking for great people - whether to join our team or partner with us. Explore our current career opportunities or send us an open application. Know entrepreneurs who need funding? 

Partner with Qred, earn rewards for successful referrals, and help more businesses get the financing they deserve. Let’s reshape small business financing together!

Website

https://www.qred.com/