Danish pensions provider Velliv has struck a deal with financial technology company Grandhood to offer a new all-digital low-cost pension product to small firms and the self-employed, with Velliv taking a stake in the company at the same time.
Velliv said the new joint product, set to be launched in the fourth quarter of this year, was targeting a group in Denmark’s labour-market which typically did not save for a pension currently.
It would be Denmark’s first 100% digital pension with low costs, great flexibility and allow customers to choose their own risk profile and a sustainable investment profile, boasted the re-branded Danish life and pensions operation of Nordic banking group Nordea.
Steen Michael Erichsen, Velliv’s chief executive officer, said: “Our collaboration with Grandhood strengthens our distribution channels even more, and we will be reaching out to even more Danes.”
Grandhood was founded in 2017 by Jon Lieberkind, now its CEO, alongside Jens Kam, chief product officer, and Mathias Bredkjaer, chief financial officer, with all three co-founders having backgrounds in investment advisory and risk management businesses.
The firm has already signed hundreds of companies up to its digitalised subscription-based workplace pension for entrepreneurs and small and medium-sized companies, which is designed to be simple and uses ESG-friendly ETFs in its low-cost life-cycle product.
As part of the collaboration agreement between the two firms, Velliv said it was taking an ownership stake in Grandhood.
Lieberkind said that in the partnership Grandhood would focus on the digital customer experience, communication and consulting, while Velliv would deliver savings and insurance products, asset management and infrastructure.
Jesper Rangvid, a member of Grandhood’s board, said the fintech firm’s pension products were aimed at the self-employed and other smaller companies, where many people did not currently save enough for retirement.
“Grandhood and Velliv’s collaboration therefore helps to solve part of the ‘residual group challenge’ in the Danish pension system,” said Rangvid, who is also professor of finance at Copenhagen Business School (CBS).