Ingka Group, the owner of IKEA stores, is foraying into consumer banking, by acquiring a stake of 49% in Sweden-based Ikano Bank from Ikano for an undisclosed price.

As per the terms, Ingka Group will have the option to buy the remaining stake at a later date.

Ingka Group is carrying out the deal through Ingka Investments. The company operates 378 IKEA stores and the furniture retailer’s e-commerce platform in 31 countries.

The deal is said to be a core part of its journey to help make IKEA more affordable, accessible, and also sustainable.

Krister Mattsson – Managing Director of Ingka Investments said: “This agreement brings us a step closer to fulfilling Ingka Group’s ambition to offer competitive and accessible financial services, enabling even more people to have better homes and thereby, better lives.

“The significant investment in Ikano Bank is also an exciting step for Ingka Investments into the banking sector. As customers and retailers increasingly seek banking solutions with a strong digital foundation, our commitment to work even closer with Ikano Bank during its digital transformation is a great opportunity to serve new and existing customers alike.”

For Ikano Bank, a closer partnership with Ingka Group will help it further speed up its transformation and provide accessible financial services.

Both Ingka Group and Ikano Bank were founded by Ingvar Kamprad. Ikano Bank has served as the financial service provider for IKEA Retail in eight countries.

Henrik Eklund – CEO of Ikano Bank said: “We’re excited to welcome Ingka Group as a part owner of Ikano Bank. Together we will continue to develop accessible digital financial services for IKEA customers, our other valued partners, and end customers.”

The closing of the deal is subject to approvals from the Swedish Financial Supervisory Authority (Finansinspektionen) and relevant competition authorities.

  Banking industry news, Henrik Eklund, Ikano Bank, IKEA, Ingka Group, Krister Mattsson, Sweden