Fintech Week Copenhagen Report
This week there’s a huge financial event happening in Copenhagen called “Europe Money 20/20” , that brought leading people of finance from all over the world. In align with that Copenhagen Fintech Hub has arranged a series of educational and networking events connected with most advances tech as blockchain, AI, IOT and so on. I’ve visited Copenhagen to meet our awesome customer Sofie from HiveOnline and take a look at the local fintech scene.
Overall Copenhagen made an impression of small, perfectly managed city with friendly people, love to bicycles, greens and lakes. Local fintech hub ranks number 16 out of 44 ahead Paris and Oslo. London and Singapore ties for 1st place. There are currently around 140 fintech startups in Denmark, and it’s quickly developing. Here’s the list of most funded and known Danish startups, buy the total amount raised:
- Clearhaus: Credit card payment ($8M)
- Pleo: Company credit cards ($6,6M)
- LunarWay: Digital bank for millennials ($4,4M)
- Cardlay: automated company expenses ($3,8M)
- Coinify: Bitcoin payments ($3,8M)
- Chainalysis: Anti-money laundering for bitcoin ($1,7M)
- Ernit: Smart piggy bank ($1M)
During the panels and speeches the most thrilling topics discussed were the AI and deep learning. It’s estimated that by 2025 half of jobs in the financial sector will become obsolete. It will head to higher polarization, that will mostly harm poor people in developed countries, that used to work as clerks and sales people. It’s an overall problem in economy, but fin markets seems to be more involved in it and are looking fro solutions.
Also with the disruptive tech, margins of traditional institutions shrink. There’s a need to move from transactions to solutions, provide additional value (e.g. with advising) and bundle up services. Companies should go from disruption (zero price), to sustainable innovation (higher margins) in things like passive investments, intelligent offers, insurance, etc. Thus data and analytics engines become more and more important.
Finally there’re changes in the EU regulation like PSD2 (Second Payment Service Directive) that allow disruption, while protecting the personal data and requiring other additional measures for better market. Such regulations led, for example, to almost $2,7B fine on Google, for favouring its own shopping service in the search results. Still there’re high barriers for small fintech startups to get licenses and go live. Luckily now there’re a couple of financial sandboxes, like in London and Abu Dhabi, where startups can test their projects first on a small scale.