Doconomy acquires fellow Swedish fintech Dreams

Climate technology company Doconomy announced its acquisition of fellow Swedish fintech Dreams Technology, marking an interesting intersection of 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 methodologies to analyze consumer and corporate actions and determine their impact on the climate.

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

But the ultimate goal, according to CEO and founder Henrik Rosvall, was to 'repackage banking' to get people to feel more motivated about saving money. 

"By joining forces with Doconomy, we see a substantial opportunity to promote financial wellbeing and climate action at scale with the first holistic offering in the market. It’s a match made in heaven using innovation and behavioral expertise to empower banks in their journey from transaction engines to global change agents," Rosvall said.

Under the deal, Doconomy will incorporate Dreams' technology platform in order to offer its existing banking and financial institution partners an extended behavioral science-driven product. This will include features such as climate smart savings, debt management, and investments. 

The company plans to create a great digital experience that promotes financial wellbeing, encourages sustainable consumption choices and effectuates climate action at scale. 

"“Doconomy and Dreams Technology are a perfect match! Both companies are built to motivate and shape behaviors in an innovative way that is key to sustainable and lasting change. We’re confident that our joint forces will accelerate climate literacy while giving a major 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 increasing demand from banks for carbon emissions monitoring tools, setting 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 organizations.

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

“Since then, that has developed into a diverse set of tools and impact methodologies, aiming to engage users in everyday climate action, but also to make use of the efficiencies within the financial services system, making banks the hub for actionable insights with regards to climate impact for every user,” he added.