As fintech investment continue to grow across Sweden, an entire ecosystem of fintech companies, incumbents, technology companies and other adjacent industries is forming around this mighty innovative movement.
At the same time, growth has meant that decision-makers and regulators have shown greater interest in the industry, and the pace of regulation continues to increase. This is stated in the industry association Swedish Fintech Association’s third edition of the Fintech report .
According to the report, the Swedish fintech industry continues to grow and in 2021 it amounted to more than 500 companies and employed up to 25,000 people. It is a growing industry and 91 percent of SweFinTech’s members state that they plan to recruit in 2022. Global investments in fintech companies almost doubled in 2021, and in Sweden the amount invested increased by 72 percent in 2021 compared to 2020.
The industry association states that there is still a need for capital raising, mainly for smaller companies as 43 percent of the companies need to raise capital in 2022. In order to maintain the successful ecosystem that has surrounded the Swedish fintech industry in recent years, the Swedish Fintech Association wants Swedish decision makers to create a internationally competitive and predictable regulatory environment and a continued well-functioning capital market.
The report shows a positive trend regarding the understanding of the fintech industry among the country’s authorities and decision-makers. In the 2020 Fintech report , 79 percent of SweFinTech’s members felt that understanding was low. The corresponding figure in 2021 was 65 percent and in 2022 57 percent.
However, access to the financial infrastructure is a challenge for many fintech companies and 20 percent of SweFinTech’s members have experienced challenges in gaining access to banking services at the major banks. SweFinTech demands increased dialogue with the banks and that Finansinspektionen provide clarifications and guidance to curb the problem.
Sweden has has produced a several Fintech unicorns and continues to set a standard for financial services innovation, however if they are to continue this growth trajectory, they need to be both aided and protected by an ecosystem that ensures the necessary regulation, adequate services for startups and the right incentives to continue to challenge the established in favour of better, simpler more accessible financial services for everyone.