Doconomy buys other Swedish fintech Dreams

Climate technology company Doconomy announced the acquisition of fellow Swedish fintech Dreams Technology, which marks an interesting intersection between behavioral economics and climate impact in financial services.

Doconomy is a Swedish carbon data company that helps brands and consumers measure, understand and reduce their carbon footprint, using a wide range of data and assessment methods to analyze consumer and business actions and determine their impact on the climate.

Founded in 2014, Dreams is a Swedish financial management app that leverages behavioral science to help users achieve their financial goals. The company built its product around the idea of ​​keeping the dream at the forefront of the consumer’s mind, so that the savings mechanism feels purposeful, rather than endless.

But the ultimate goal, according to CEO and founder Henrik Rosvall, was to “repackage banking” to make people feel more motivated to save money.

“By joining forces with Doconomy, we see a significant opportunity to advance financial well-being and climate action at scale with the first holistic offering in the market. It’s a match made in heaven by using innovation and behavioral expertise to empower banks in their journey from transaction engines to global change agents,” said Rosvall.

Under the deal, Doconomy will incorporate Dream’s technology platform to offer its existing banking and financial institution partners an expanded behavioral science-driven product. This will include functions such as climate-smart savings, debt management and investments.

The company plans to create a great digital experience that promotes financial well-being, encourages sustainable consumption choices and effects climate action at scale.

“”Doconomy and Dreams Technology are a perfect match! Both companies are built to motivate and shape behavior in an innovative way that is the key to sustainable and lasting change. We are confident that our joint efforts will accelerate climate knowledge while giving a big boost to the financial industry’s transition to net zero – making every transaction count for both people and the planet, said Doconomy CEO Mathias Wikström.

Last year, Doconomy announced its expansion into the US market, thanks to the growing demand from banks for carbon emission monitoring tools, and set up shop in New York City.

Their new team has a cumulative experience of 50 years working for notable firms in the industry, including Capital One and New Energy Nexus. Together, they bring expertise from banks, sustainable finance and climate policy organisations.

“In 2016, we developed the world’s first methodology to put the carbon intensity of every single transaction made with your debit or credit card,” said Mathias Wikström in a Tearsheet podcast earlier this year.

“Since then, this has developed into a diverse set of tools and impact methodologies, which aim to engage users in everyday climate actions, but also to utilize the efficiency of the financial service system, which makes the banks the hub for actionable insight regarding climate impact for each user,” he added.