According to a MagnaCarta, Fintech Mundi and Mastercard report, fintech companies are continuing to thrive in Scandinavia and also in the Baltic regions, writes Fintech Schweiz Digital Finance News.
They are reported to have created half of the industries main players in Europe to date and those firms seeking fintech partnerships is far higher than the overall 2017 European average in these regions.
At the forefront of these successes are Swedish online payment platforms Klarna and iZettle and Estonian money transfer program TransferWise which has now relocated to the UK. These three companies are reputed to have a cumulative worth of USD 6.3 billion.
Susanne Hannestead CEO of Fintech Mundi and co-author of the research explains:
“The Nordic and Baltic markets already have an incredible track record of building fintech companies having created regional successes that have gone on to become global winners, like Spotify and Zwipe.”
Its reported that there are over 500 fintech companies across the Baltic and in Scandinavia and banks are showing increased interest seeing that costing and effectiveness can be a factor of collaboration in this financial sector.
Mastercard has been a major driver of fintech in the region having recently launched its Lighthouse Development Program in partnership with NFT Ventures in the region. The project has been set up in order to trawl the sector for prospective startups and develop new technologies.
Mats Taraldsson, the head of digital business development and fintech partnerships of Mastercard Nordics and Baltics, claims that collaboration is the key to success and finding the right fintech and startup mix to deliver customer needs:
“…working together with startups and fintech is essential to meet the future needs of consumers, merchants, and governments. We have been committed to fintechs for many years, fostering partnerships with pioneers who have grown into global brands.”
The Nordic Fintech Disruptors Report 2018 does highlight some problems though, regardless of the regions capturing the larger chunk of Europe’s fintech business, suggesting that the region still lacks regulation and supervision, particularly at local levels. In fact, 45% of respondents agreed that Nordic and Baltic fintech companies needed greater support in this area. Hannestad, also co-author of the research explained:
“A more joined-up approach to fintech, and the factors that influence successful innovation between the markets governments and regulators, however, would create new opportunities for growth and productivity and ensure the region is the best place in Europe to build the next generation of fintech giants.”
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