Swedish fintechs Doconomy and Dreams join forces

Climate technology startup Doconomy is acquiring fellow Swedish fintech Dreams Technology, whose ‘engagement banking platform’ uses behavioral psychology to improve consumers’ relationship with money.

The deal will allow the two firms to “bridge the unique intersection of behavioral economics and climate impact”, with Doconomy, which was founded in 2018, working with banks and financial institutions to help them understand and reduce their environmental impact.

Doconomy will adopt Dreams’ proprietary platform and offer its customers an expanded product driven by behavioral science that will include modules for climate-smart savings, debt management and investments. The combined proposition “will be the first to deliver a best-in-class digital experience that promotes financial well-being, encourages sustainable consumption choices and effects climate action at scale,” the companies said in a statement.

The rise of fintech has coincided with a growing awareness of climate impact, driven by increasingly demanding consumers. According to Mambu’s Green Banking Report, 60% of consumers say they want all financial services they use to be sustainable. Individual action can still have a huge impact: according to Doconomy, more than 70% of global emissions are attributed to household consumption, but almost three quarters (73%) of consumers will change their purchasing behavior to reduce their impact on the planet.

Two companies ‘built to motivate and shape behaviour’

Mathias Wikström, CEO and co-founder of Doconomy, comments: “Doconomy and Dreams Technology are a perfect match. Both companies are built to motivate and shape behavior in an innovative way that is key to sustainable and lasting change. The acquisition will allow us to incorporating the unique methodology Dreams Technology has built up over the years, along with their suite of proven products.

“This will expand our offering, bringing together our team of climate impact experts with the behavioral economics talent of Dreams Technology to achieve urgent and measurable results. We are confident that our combined strengths will accelerate climate knowledge while providing a major boost to the financial industry’s transition to net zero – making every transaction count for both people and the planet.”

Henrik Rosvall, CEO and co-founder of Dreams Technology, adds: “By joining forces with Doconomy, we see a significant opportunity to promote economic well-being and climate action on a large scale with the first comprehensive offering in the market. At Dreams Technology, our solutions operationalize over 100 behavioral science insights and are designed to drive sustainable behavioral change in banking customers by closing the gap between intention and action, creating positive and impactful financial behavior and making money more emotional, accessible and effective for everyone. . It is a match made in heaven, using innovation and behavioral expertise to empower banks on their journey from transaction engines to global change agents.”

As part of the agreement, Rosvall will join the management team at Doconomy.