Fintech after 2020: The Nordics are a fintech powerhouse but new report shows that progress is at risk of stalling without effective partnerships
- Confidence in the region as home to great ideas stands at 68% in 2019 (14% up from 2018)
- 67% of survey respondents feel the region needs greater access to investor capital to realise its potential
- 52% believe greater bank openness to partnering will help the region become a global fintech hub
The Nordic and Baltic region has all the building blocks to generate wealth and opportunities and is punching above its weight in terms of producing unicorns, moving from start-up to critical scale-up phase and it leading the rest of Europe on Open Banking and PSD2 progress. Results from the fourth Nordic Fintech Disruptors Report launched during Money 2020 in Amsterdam finds confidence in abundance at 68%, 14% up from 2018.
The report produced by MagnaCarta and Fintech Mundi in partnership with Mastercard and BDO, is a comprehensive review of the current position and future trends in Nordic and Baltic fintech. It features extensive interviews with banks, fintechs, regulators, accelerators and leading innovators, alongside the results of an industry-wide survey.
Although more than half the survey respondents believe that the Nordics and Baltics will dominate the fintech landscape after 2020, the confidence is tempered with realism and a recognition of key challenges. 67% of respondents feel the region needs greater access to investor capital to realise its potential (24% higher than 2018), while over half believe that greater openness to partnering will help the region compete on the global stage.
Against this background, this year’s report is more of a manifesto, setting out a vision for how the region can fully realise its strengths and take full advantage of the new era of integrated digital finance. Much of the answer still lies in viable, effective partnerships and a better connected fintech ecosystem which offers the best chance to:
- Attract skills and talent required to continue developing the marketplace
- Bring more customers on board to create sustainable businesses
- Serve and support new businesses to create more winners
- Fertilise new ideas at scale and shorten times to profit
- Grow the region’s reputation to create a virtuous circle for success
“Since we started the research in 2014 we have seen a region that has
outperformed many in developing and nurturing fintech innovation but true
collaboration and trust across the ecosystem remains an issue which has to be
addressed if the region is to fulfil its potential as a global fintech hub, ”
comments Simon Hardie,
author and publisher of the report.
The report is a call to arms for banks, investors, regulators, public bodies and for the fintechs themselves,” says Susanne Hannestad, CEO of Fintech Mundi, a prominent Nordic based fintech accelerator. “The Nordic and Baltic regions are ideally placed to out-perform their peers in Europe, but only if we can find a more effective way to work together. We are not there yet.”