Nordic Fintech Swagger: Why the world is watching Copenhagen

Nordic Fintech Swagger: Why the world is watching Copenhagen - Tenity Insights from Davos 2025.

‍

The rise of Nordic Fintech and its global impact

Fintech innovation isn’t just happening in the world’s biggest financial hubs, it’s thriving in the Nordics. With a unique mix of trust-based digital adoption, strong sustainability initiatives, and deep collaboration between banks and startups, the Nordic region has positioned itself as a fintech powerhouse.

In this latest episode, host Max Plank sits down with Thomas Krogh Jensen, CEO of Copenhagen Fintech, at the World Economic Forum in Davos to explore why global investors and financial institutions are turning their eyes toward Copenhagen.

From early-stage fintech incubation to global expansion strategies, Thomas shares his insights on what makes Nordic fintech stand out, where the ecosystem is heading, and why collaboration—not disruption—is shaping the future of finance.

‍

‍

Why Copenhagen? Understanding the Nordic Fintech formula

Thomas kicks off the discussion with an introduction to Copenhagen Fintech, the leading innovation hub for fintech startups in Denmark and across the Nordic region.

"We started out eight years ago as a small initiative supporting fintech startups," says Thomas. "Now, we’ve built a global community of over 300 companies that are redefining financial services."

What makes the Nordics unique in fintech? According to Thomas, it boils down to three factors:

‍

- High trust and digital adoption – Nordic consumers and businesses have a strong level of trust in digital financial services, leading to fast adoption of new technologies.
- Collaboration over competition – Unlike the early days of fintech, where startups aimed to disrupt banks, today’s landscape is focused on partnerships and co-innovation.
- A global mindset from day one – Nordic fintech startups are built to scale beyond their small home markets, making them attractive for international investors and financial institutions.

‍

Thomas highlights an interesting link between the Nordics and Switzerland, noting that both regions rank highly in innovation, digitization, and sustainability—a key reason why international banks and fintech investors are increasingly looking toward Nordic startups.

"We share a lot of the same DNA with Switzerland. It’s no surprise that global players are now looking at the Nordics for fintech innovation," he explains.

‍

Scaling Fintech: The new bank-Fintech relationship

A decade ago, fintech was seen as a direct threat to traditional banking. But fast-forward to today, and banks and fintechs are more intertwined than ever.

"It used to be ‘fintechs are coming to eat the banks’ lunch’—but that narrative has shifted," says Thomas.

Instead of pure competition, financial institutions now rely on fintechs for technology, talent, and innovation. Thomas explains how banks need to balance three strategies:

Build – Develop in-house solutions for core financial services.
Borrow – Partner with fintech startups to integrate new capabilities.
Buy – Acquire promising fintechs or talent to stay ahead.

But while partnerships sound good in theory, they aren’t always easy in practice.

"Many financial institutions still struggle to work with startups," Thomas notes. "Corporate VC initiatives didn’t take off as expected, and some banks even shut down their fintech investment arms. There’s still a long way to go in bridging the gap."

‍

Nordic Fintech trends: What’s hot right now?

For investors and financial leaders looking at the Nordic market, which fintech verticals are gaining the most traction?

Thomas outlines three areas where Nordic startups are seeing rapid growth:

1️- Wealth Management & Digital Assets – From AI-powered financial advisory tools to blockchain-based solutions, wealthtech innovation is booming in the Nordics.
2️- SME Fintech & Embedded Finance – With 85% of SMEs using cloud accounting software, fintechs are embedding financial services directly into business workflows.
3️- Climate Fintech & ESG – Sustainability is a major focus, with startups like Matter (ESG screening) and Tonomy (climate-positive finance) leading the charge.

"The Nordic region is a hotspot for climate fintech," says Thomas. "Investors are recognizing the potential for financial services that contribute to sustainability."

‍

The funding challenge: Why Europe needs a stronger VC ecosystem

Despite its success, Nordic fintech—like much of Europe—still faces one major challenge: funding gaps at later stages.

"We’re seeing a problem where European startups raise smaller rounds compared to the US," Thomas points out.

This funding issue limits scaling potential and forces many fintechs to relocate or seek international investors.

- In the US, private equity and VC investments are significantly higher, fueling rapid fintech growth.
- In Europe, many startups struggle to secure large-scale funding, slowing expansion.

Thomas references a recent report on EU competitiveness that underscores this challenge:

"The US has built a phenomenal VC ecosystem—that’s what Europe needs to develop if we want to compete globally."

‍

What’s next for Nordic Fintech?

As the episode wraps up, Max Plank asks Thomas what advice he’d give if he returned to the corporate world. His response is a powerful takeaway for financial leaders:

"To drive real innovation, companies need to embrace uncertainty and create a culture of psychological safety," he says. "The best ideas don’t come from rigid hierarchies—they come from people who feel safe to experiment, fail, and try again."

For fintech startups, banks, and investors looking to tap into the Nordic ecosystem, the message is clear:

- The Nordics aren’t just a fintech hub—they’re a global force.
- Trust, collaboration, and innovation will define the next wave of financial services.
- Scaling beyond borders is key—and funding will be the biggest challenge to solve.

‍

‍

For more insights into fintech investment trends, corporate venture capital, and startup growth strategies, subscribe to Innovation. Connected – World Economic Forum Davos 2025 Edition.

‍‍

🎧 Listen all the episodes on Spotify

📺 Watch full episodes on YouTube

‍