Denmark

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01
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Part
01

Business Statistics: Denmark

The total number of enterprises in Denmark in 2017 is approximately 296,500.

BUSINESS STATISTICS

  • In 2017, according to SBA fact sheet, the non-financial business economy in Denmark had 208,835 employees.
  • In 2017, the non-financial business economy for micro-businesses in Denmark had 185,324 employees.
  • In the non-financial business economy in Denmark, the total number of enterprises in 2016, as presented by Statista, was segmented by size of employment.
  • With 0 to 9 employees: 194,104 enterprises
  • With 10 to 19 employees: 12,278 enterprises
  • With 20 to 49 employees: 7,801 enterprises
  • With 50 to 249 employees: 3,714 enterprises
  • With 250 employees or more: 652 enterprises
  • The total number of enterprises in Denmark in 2017 was approximately 296,500. This figure was the total quantity of workplaces segmented by industry (DB07 10-grouping). The approximated quantity was presented below.
    • Agriculture, forestry, and fishing: 25,000 
    • Manufacturing, mining and quarrying, and utility services: 18,000
    • Construction: 29,500
    • Trade and transport: 75,000 
    • Information and communication: 16,000 
    • Financial and insurance: 6,000
    • Real estate: 17,000 
    • Other business services: 48,000
    • Public administration, education and health: 38,000 
    • Arts, entertainment and recreation activities: 24,000 

RESEARCH STRATEGY:

To get the total number of enterprises in Denmark in 2017, we began by scouring through reputable global data organizations that provide data for specific countries in a bid to find the required data but we could not find any relevant figures. GlobalEDGE had Denmark's trade statistics, OECD data was for the number of employees without specification of any industry sector, and the data from Trading Economics was for the total registered businesses in 2007. European Commission SBA fact sheet 2018 data had the total number of enterprises, employees, and revenue, but it was only for non-financial business economy. Eurostat had a database where we could possibly perform a triangulation but the descriptive symbols were not properly explained, hence we could not make use of the data. Hence, no useful and recent information was derived from these sources.
We also tried looking for regional data in a bid to find the required information. Statistics Denmark provided the total number of business enterprises in Denmark in 2017 but it was not segmented by the number of employees, revenue, or the year they started. To get the relevant data, we first get the approximated quantity from the graph provided by Statistics Denmark which was segmented by industry (DB07 10-grouping) and added them.
For the breakdown of the total number in terms of businesses that are sole traders (i.e. no employees), businesses with less than 10 employees, and businesses with less than 250 employees, the latest available data was for 2016 as illustrated by Statista, and this data was for non-financial business economy. However, we were still not able to find data pertaining to the number of businesses that have less than 50 million EUR in annual turnover (revenue) and the number of businesses which have started recently, even after performing these approaches in checking different credible sources. In the absence of the required information, we pulled together all other relevant insights and helpful findings related to the requested information and presented them above.
Part
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Part
02

Co-working Space: Denmark

There are three major co-working space providers operating in Denmark. They are INCUBA, Symbion, and Regus. Regus is the largest provider with 15 locations in Denmark.

CO-WORKING SPACE PROVIDERS IN DENMARK

RESEARCH STRATEGY

To identify the number of major co-working space providers in Denmark, we first examined the locations listed on coworking databases such as Coworker, CoworkBooking, and Coworking.Coffee. Coworker has listed 37 locations in Denmark, making it the database with the most comprehensive list of coworking spaces for this market. Other databases such as CoworkBooking has provided only 25 locations (20 in Copenhagen and five in other cities), and Coworking.Coffee has listed four locations only. The website of every provider listed on these databases was examined to identify the number of coworking spaces that they operate. Among the 30+ providers examined, only INCUBA, Symbion, and Regus operate co-working spaces in three or more locations in Denmark.
To ensure that every popular co-working space provider in Denmark have been examined, we also studied additional providers listed on articles published by Valuer, EU Startups, and Startup Guide. Valuer has provided 25 co-working space providers in Denmark, but the majority of these companies are already listed in the databases mentioned above. The articles published by EU Startups and Startup Guide talked about the best coworking spaces in Copenhagen. It is assumed that they focused on Copenhagen as the city is known for being one of the coworking hotspots in Europe. The majority of the providers considered the “best” were already listed in the databases mentioned above. The additional providers examined such as Founders House and PB43 operate only one location.
Lastly, we examined some of the largest coworking companies in the world or Europe that were not listed in the databases and articles mentioned above. Global players such as WeWork and Spaces operate only one location in Denmark. Europe-based coworking space providers such as Silver Square and WOJO do not operate any location in Denmark.
Part
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Part
03

Registering a New Company: Denmark

The process of starting a new company in Denmark includes; first obtaining a NemID signature, after then, registration with the Danish Business Authority online. A company will also need to sign up its employees for workmen’s insurance.

OVERVIEW

HOW LONG TO REGISTER A COMPANY AND CHALLENGES

  • Registering a new company can be done within a few hours using the online system.
  • Going by the traditional paper registration, it takes about two to three weeks to complete the registration process.
  • A limited liability company is preferred, as it is faster to incorporate.
  • Businesses are required to pay multiple taxes.
  • Signatory for a company will be required to travel down to Denmark to complete the registration process.
  • Another challenge is that businesses may be unfamiliar with the different taxes required from them.

HOW LONG TO SET UP A COMPANY BANK ACCOUNT

  • It usually takes about 3 weeks to set up a corporate bank account for a limited liability company.
  • The account application process can be started online.
  • The applicant will need to visit a branch with the required documents after starting the process online.

COMPARISON TO OTHER REGIONS

DIFFERENCES IN SETTING UP BRICK-AND-MORTAR AND ONLINE BUSINESS

  • One of the differences between a brick and mortar and online business is dealing with construction Permits.
  • Another difference between a brick and mortar and online business is registering a property.
Part
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Part
04

FinTech Climate: Denmark

Denmark fintech industry is among the fastest-growing in the Nordic region and is named the second most innovative country in the world.

THE STATE OF FINTECH BUSINESS IN DENMARK

  • Denmark fintech industry is among the fastest-growing in the Nordic region. The country is gaining serious momentum, setting up the region’s first co-working space and being its forerunner in the development of blockchain technology.
  • With a national focus on digitization and a vibrant startup community, Denmark is named the second most innovative country in the world.
  • In 2017, Denmark’s transaction value in fintech amounted to USD11,487 million. Between 2017 and 2021, it is expected to show an annual growth rate of 16.1%, resulting in the sum of around $20,835 million by that year, with potential users of Danish fintech being 5.4 million people.
  • Currently, the country’s largest sector within fintech is ‘digital payments’, with that alone having a total transaction value of $11,269 million.
  • The country’s capital of Copenhagen (København) is looking to become the Nordic region’s go-to fintech hub.

COPENHAGEN (KØBENHAVN)

  • Copenhagen has been voted by World Bank as "the easiest place for business in Europe.
  • The city houses leading Danish and International companies including SimCorp, IBM, Microsoft, and Nets focuses on fintech niches such as user-friendliness, process optimization, and IT security.
  • Several established startups deal with familiar fintech faces like asset management, digital credit rating, Bitcoin compliance, blockchain technology, and payment solutions. In addition, in the Nordic region, Denmark leads the way in the development of blockchain, as epitomized by companies such as Chainalysis, Blocktech, Brainbot, and WeMoveCoins.
  • The city has a relatively low cost of living compared to other leading fintech cities, and ranks 5th in the European Digital City Index, perhaps due to the fact that more than 88% of the population aged between 16 and 74 are in contact with the public sector using the Internet.
  • The Greater Copenhagen area also offers the most flexible hiring and firing legislation in Europe, and boasts the best business climate in Scandinavia, housing 12,000 researchers, 15 science parks and 14 universities and colleges.
  • On top of this, it is one of Europe’s largest ICT clusters, employing around 100,000 IT workers across more than 12,000 companies.
  • An innovative big data platform is being built by Hitachi to order for Copenhagen to become a ‘smart city’ and a world first, integrating private and public data from various sectors into a single solution. What’s more, Denmark was given a Global Creativity Index score of 0.917, which ranks it in the first place.

STATISTICS ON THE DANISH FINTECH INDUSTRY

  • According to the Fintech Copenhagen Magazine, the whole Danish fintech industry employs around 15,000 people, with that figure expected to rise by 36% in the next 5 years (that’s 19,410 workers by 2020).
  • Another report says Finance and ICT employ 5% of Denmark’s workforce.
  • 60% of all fintech companies are confined to the Capital Region, with approximately 40% specifically in the City of Copenhagen.
  • The largest market segment is digital payments, mobile payments, cross-border peer-to-peer payments, and digital commerce transactions.
  • Close cooperation between public and private businesses, highly developed digital infrastructure, connectivity, and one of Europe’s largest ICT clusters offer unique business opportunities in the sector.
  • In the past five years, 50 fintech startups have registere dthemselves in Denmark.
  • In the past two years, 51 Fintech investments with a value of USD390 million were tracked in the Nordics out of which 32 were made in Sweden, 8 in Finland, 5 in Denmark and 4 in Norway.

GOVERNMENT HAND IN DENMARK FINTECH SECTOR

  • As a part of the digitization strategy, The Danish Agency for Digitization is developing the next generation of a national infrastructure for e-identity.
  • The digitization strategy also aims at increasing cyber and information security. The Danish Government’s National Cyber and Information Security
  • Strategy will be updated for a new period. This creates opportunities for insights from interest groups, businesses, and academic professionals.
  • The political vision is to eradicate paper money by 2030 and become the first cashless society in the world. Since 2015, the central bank has ceased printing bills and making coins and many banks don’t carry cash.
  • Everything from retail shops to markets have been encouraged to get rid of their cash registers. Cashless payment methods have increased and mobile payments increased by 66% during 2016.

BUSINESS LINES IN THE DANISH FINTECH SECTOR

  • #PEER TO BUSINESS — This includes Crowdfunding, Invoice Trading, and Portfolio Management
  • #ALTERNATIVE BANKING — This includes Personal Mobile Banking, Company Banking, and Housing Loans
  • #CUSTOMER PAYMENTS — Payment services, Loyalty Card Links, and Bitcoin Payments
  •  #STOCK EXCHANGE — Social Trading and Automated Trading
  • #CURRENCY — Bitcoin Trading
  •  #DEVELOPING COUNTRIES — Lending and sponsorship for coding education
  • #COMPANY ADMINISTRATION — Accounting Software, and Shareholder Management
  • According to another report, Payments & Transfers take up the largest share of the Danish fintech market at 35%. It is followed by Equity & Lending — 28%, Cybersecurity & Other Services — 21%, Personal Finance — 20%, Financial Research & Data — 18%, Retail Banking & Investment Services — 10%, Institutional Investment Services — 10%, and Cryptocurrencies — 3%.

ORGANIZATIONS WORKING TO STRENGTHEN DIGITAL INFRASTRUCTURE IN DENMARK

  • Copenhagen Fintech Innovation and Research (CFIR) is Danish finance, IT, and fintech cluster organization. It's a non-profit, multisectoral, members-driven organization to develop Denmark’s position as a specialist in fintech and as fintech cluster. Its focus is fintech entrepreneurship, Platforms, payments and usability, Cybersecurity in finance, Digital processes, and Computational Finance.
  • Danish Fintech Association (DAFINA)- An association of six fintech start-ups Clearhaus, Wallmob, Lunar Way, Mybanker, Flex Funding, and Lawyer Camphausen Walldén.
  • CPH FINTECH HUB — Its main visions is to develop Copenhagen to a leading Nordic Fintech Ecosystem within the three coming years.
  • The CPH FINTECH project was started by visionary partners within CFIR, Copenhagen municipality, Finansforbundet, Fiscal Council, DJØF, BEC, NETS, Saxo Bank and Tryk Forsikring. CPH FINTECH HUB will merge together with CFIR and create a new strong organization: COPENHAGEN FINTECH.

FACTORS HINDERING THE DANISH FINTECH SECTOR

  • One of the biggest challenge growing competition from leading European fintech cities, especially London, Stockholm, and Amsterdam, which are currently the most revered fintech powerhouses.
  • The country is, however, working to climb the ladder through the cooperation of many different sectors.
  • Denmark is already known for its close partnership between public authorities and businesses, which is good news for new fintech services that can be connected with larger, international financial services companies easily.
  • The collection and usage of data is shared between public and private sectors and used for innovation and development in both

EXAMPLES OF SUCCESSFUL DANISH STARTUPS

  • Capdesk — The world’s first shareholding tool for investors and companies.
  • Clearhaus — Provides card payment solutions to online merchants, and is authorized by the Danish Financial Supervisory Authority.
  • Coinify — Accepts payments in 16 digital currencies, offering its blockchain payments services to over 100,000 online business.
  • Hufsy — A banking service for startups and entrepreneurs, offering a financial overview tracker and invoicing tools, as well as cross-border banking using blockchain technology.
  •  Lunar Way — Digital banking, with a focus on mobile technology for millennials.
  • MobilePay — Started by Danske Bank, with its app released in 2013, and now Nordea and Jyske Bank are distribution partners. 3.4m Danes use this mobile payment solution.
  • Tradeshift — A B2B platform that uses cloud-based technology to improve invoicing workflow and supplier financing for companies. It is used by 800,000 companies.
Part
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Part
05

FinTech Companies: Denmark

Ten FinTech companies that operate in Denmark and received some form funding in 2018 and/or 2019 are Pleo, Lunar Way, ViaBill, Cardlay, Authenteq, Yourpay, Keyhole, Hiveonline, Risika, and Roger.

PLEO

  • Pleo's official website can be accessed here.
  • Pleo provides a "contactless enabled corporate expense card" that is connected to a mobile app. The employee can use the card to make payments and use the app to take a pic of the receipt, which then processes required details and sends a report to the employer.
  • Series A funding in 2018: $16,000,000.
  • Series B funding in 2019: $56,000,000.

LUNAR WAY

VIABILL

  • ViaBill's official website can be accessed here.
  • ViaBill offers a flexible way to purchase items at Danish e-commerce stores. This company offers a line of credit of 2,000 Danish Kr., which can be used to make purchases. It sends a monthly statement to the user that shows the total to be paid by the 20th of the month.
  • Series A funding in 2019: $10,000,000.

CARDLAY

  • Cardlay's official website can be accessed here.
  • Cardlay is an enterprise expense management platform and a corporate cards' issuer. Its clientele mainly consists of businesses wanting to streamline their expenses. It also provides a business account, a management portal, a managing card, and an application to check account information.
  • Series A funding in 2018: $4,461,900.

AUTHENTEQ

YOURPAY

KEYHOLE

HIVEONLINE

RISIKA

  • Risika's official website can be accessed here.
  • Risika is a Nordic FinTech start-up founded in April 2017, who wants to help B2B companies save money by avoiding losses and by automating manual processes. It makes use of data sources and advanced "algorithms to run automated risk assessments".
  • Grand funding in 2018: $63,953.9.
  • Seed round funding in 2019: $835,412.84.

ROGER.AI

  • Roger's official website can be accessed here.
  • Roger is an accounting automation tool that cuts time spent on financial processes by up to 80%. It works on top of existing accounting software to automate financial processes like bill pay, approvals, receipt scanning, compliance, and bookkeeping with simple workflows anyone can set up and manage.
  • Series A funding in 2019: $7,350,000.

RESEARCH STRATEGY:

We weren't able to exactly locate ten FinTech companies operating in Denmark which received series A, B, C or D funding in 2018 or 2019.
Our first strategy was to look in organized databases. We used the company search feature of Crunchbase, Owler, and Hoovers, in order to find FinTech companies with required criteria of funding. However, our results on each website only yielded five companies, which we provided in our key findings.
Our next strategy was to consult websites like Tracxn and Copenhagen FinTech, which contain information of all the happenings in Venture funds and Startup space of FinTech in Denmark. We hoped to find any mention of companies in FinTech space completing a Series A, B, C, or D round in 2018 or 2019. However, our search results again returned the same results.
We next tried to scour news media and articles related to FinTech companies in Denmark and Series A, B, C, or D funding. We hoped to find any mention of companies other than five companies we found in our first search. However, this strategy also failed to present any different results.
Since the data was qualitative in nature, spread-out, and acutely specific, we couldn't apply triangulation approach to this. We also tried to search paid databases to see if there were any pre-organized lists of FintEch companies operating in Denmark. We could then select those, which had received series A, B, C or D funding in 2018 or 2019. We searched through GlobalNewsWire, PR NewsWire, Euromonitor, Fitch Solutions, and Europa, etc. However, we found no such paid report in our research.
After exhausting available research options, we expanded the research criteria to include companies which had received any kind of funding in 2018 or 2019.
Additionally, some monetary values have been changed from Euro and Danish Krone to US Dollar. We used following conversion rates for that.
1 Euro = 1.11 US Dollar
1 Danish Krone = 0.15 US Dollar
Part
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Part
06

Digital Services Trends: Denmark

Major financial service providers have embraced open banking in order to offer digital services to business clients, including mobile pay, real-time business insights, subscription management, online client hubs, and online debt collection. In Europe's most digital country, such services are usually offered through partnerships with third-party companies.

BACKGROUND

  • Under pressure from the EU's payment directive PSD2, many banks have turned to open banking in order to keep up with the digital transformation trend and better service their clients.
  • This often takes the form of strategic partnerships or investments in FinTech (financial technology) companies, where the collaboration is able to provide top-notch digital services faster than the banks can on their own.
  • Financial service providers such as Jyske Bank, Danske Bank, Netcompany, Saxobank, Visa, MasterCard, Topdanmark, and many more have all invested in digital FinTech solutions.

CLOUD-BASED CLIENT HUB

  • Within the financial sector, companies are provided secure online client portals that serve as a hub for all of their business needs and can be accessed from any location around the world. These portals vary depending on the institution. For example, an accounting hub may include payroll, human resources, accounting payable and receivables, invoice management, report generation and more.
  • This is a popular aspect of the digital transformation because it is more convenient for businesses to use and can save time and resources such as paper for reports. An example of this is CoZone a program offered directly to businesses by Azets, a premier provider of accounting services in the Nordic region.
  • This may be considered a major trend since most of the top ten banks in Denmark offer a variation of this service including Danske Bank's District, Nykredit's MyNykredit Business, and Saxo Bank's SaxoTraderPRO.
  • Many offer the service through third-party provider Netbank including Jyske Bank, Spar Nord, Ringkøbing Landbobank, Vestjysk Bank and Nordea. However, these portals often have more limitations than newcomers like CoZone including time restrictions.
  • Also, in a recent survey "self-service" business intelligence services that allow for independent information management at any time or place, is the third most important trend to business professionals.
  • An example in the insurance sector is If Login by If insurance company, which provides a bird's eye view of all policies and subsidiary accounts with tools included for excel reporting and claim management.

REAL-TIME PERFORMANCE MANAGEMENT

  • A form of open banking that allows a third party to analyze a company's bookkeeping data and compare it with current industry benchmarks in order to provide tailored financial insights for business improvement in real-time.
  • This is an emerging trend because not only can it save time and resources on generating reports and budgets, but it also gives businesses the ability to adapt to the needs of their environment as they occur. It is comparably faster than traditional methods of relying solely on quarterly or annual reporting.
  • Real-time business intelligence had an average rating of 5.4 of 10 according to nearly 2,600 professionals in a 2019 survey. This rated higher than other popular trends such as IoT data analytics with a 2.4 and cloud data management with a 4.3, and is significant because it shows what direction the market is heading in order to meet this demand.
  • CrediWire is an exemplary company that provides such services, with additional capabilities of sharing insights with stakeholders such as investors and banks.
  • An innovator of this trend, CrediWire has flourished partnering with the Danish government’s Business Authority, banks and other financial institutions such as KPMG, Nordea, Sandgrav Solutions, and Twist & Jensen. Their technology is also integrated into accounting software such as Reviso, Inventio.IT, and E-conomic.

MOBILE PAYMENTS

  • These services allow businesses to receive payment through the use of an app with no additional equipment required.
  • As Europe's most digital country, Denmark is known for being cashless, so mobile payment services are evidently a huge trend.
  • Initially pioneered by Danske Bank, MobilePay is an independent leader of these services in Denmark. In collaboration with approximately 60 partner banks, it provides payment solutions to more than 100,000 Danish businesses.
  • According to the Copenhagen Post, more than 75% of store transactions are cashless in Denmark thanks to services such as MobilePay, and a cashless society is a possibility in the near future.

RECURRING PAYMENTS

  • Tailored to businesses that use a subscription model, major banks offer management services through partnerships with FinTech companies. These allow companies to streamline the payment process for subscriptions and connect with their customers.
  • An example of this is Minna Technologies partnered with Swedbank and Danske Bank, which also allows businesses to send deals tailored to their clients.
  • Subscription based services are increasingly more popular with consumers in Europe due to their convenience, value, and emotional satisfaction, hence businesses that seek to follow this trend will be attracted to such technology.
  • Upcoming Copenhagen FinTech startups Upodi and FarPay are also following this trend joining the likes of Chargebee, a global pioneer in the field that began in India in 2011.

ONLINE DEBT COLLECTION

  • A collaboration of FinTech, banks, collection agencies, and lawyers; businesses are now able to manage unpaid invoices with the click of a button. These services recover debt at a lower rate than directly using a collection agency, with included online tracking.
  • Unpaid invoices mean less income for businesses, hence streamlining the process cost-effectively is an ideal option for companies. Debito has partnered with top banks and investment firms such as Spar Nord to offer these services to businesses. They advertise a risk-free, streamlined process and an 86% clearance rate.
  • This is an emerging trend with major players of the field opening their doors within the last 2 years. This includes Oddcoll, a leading provider in Europe that began in 2017 and Denmark-based Likvido which began the same year as Debito in 2018.

RESEARCH STRATEGY

In order to determine digital trends within the finance sector that specifically cater to businesses, we analyzed the activities of Denmark's major financial service providers such as Danske Bank as well as their new and upcoming FinTech companies. For example, we consider cloud-based client portals and mobile payments both trends due to their high prevalence in these industries and relatively recent debuts, considering their base technology is also young and still developing. Real-time business analytics can be considered a trend based on the increasing number of companies using the technology, despite not having many providers of it. On the other hand subscription services and online debt collection may not have the hard data supporting their popularity, however more competitors are being added to their sectors as time goes on. Denmark has a flux of developing digital services due to their prioritization of FinTech and the recent PSD2 regulation that goes into effect this year. As a result, financial service providers are continuously adding and updating to their digital service portfolio as the market expands.
Part
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Part
07

Google Pay Statistics: Denmark

After an exhaustive search through many credible sources, it appears that there is not sufficient data available in the public domain to determine how widely used Google Pay is in Denmark. However, there are 24 million users of Google Pay worldwide, as of August 2017.

HELPFUL FINDINGS

  • In late 2018, Google proclaimed its plans to begin offering Google Pay to individuals in Denmark, along with the remainder of the Nordics.
  • Both Jyske Bank and Nordea were the very first financial institutions to accept Google Pay in Denmark.
  • According to 9to5Google, financial institutions in Denmark that grant access to Google Pay include Revolut, Nordea, and Jyske Bank.
  • On October 30, 2018, Google Pay was officially launched in four brand-new Nordic countries, namely Sweden, Norway, Finland, and Denmark, as reported by Andriod Police.
  • According to a report published by Mechant Savvy, the total number of active Google Pay users globally in the year 2017 was approximately 24 million.

RESEARCH STRATEGY:

NARROWING OUR RESEARCH TO EUROPEAN REGION/DENMARK

Our research began by searching through local media publications in Denmark to locate statistics indication how widely used Google Pay is in Denmark, including the number of Google pay users, Google Pay payments by volume, Google Pay payments by value, and merchants accepting Google Pay in the country. According to CPH News, the pioneer banks that first accepted Google Pay in Denmark were Nordea and Jyske Bank, which was not helpful in determining how widely used Google Pay is in Denmark. Therefore, we tried expanding our research.

BROAD SEARCH FOR DENMARK GOOGLE PAY DATA

Afterward we explored a global platform to find useful data by searching through Merchant Savvy. We consulted Merchant Savvy to extract data to address the challenges we experienced in locating statistics showing how widely used Google Pay is in Denmark. We were able to unearth data for the total number of people using Google Pay globally, as of 2017, but this data could not assist us in determining the prevalence of the service in Denmark specifically.

USING BUSINESS PUBLICATIONS

We then explored through business publication resources such as Forbes and PRNewswire to see if one could find statistics showing how widely used Google Pay is in Denmark. On Forbes, we came across numerous articles, but none of them were relevant to this particular request. Many addressed gender pay gap and popular brands globally. Meanwhile, on PRNewswire, we found articles discussing the mobile payment services market and Denmark mobile wallet, among others, but there was no data regarding presented on the popularity of Google Pay in Denmark.

TRIANGULATION

We would have considered a triangulation approach to determine how widely used Google Pay is in Denmark, however, the data we obtained was not sufficient to carry out such an analysis. Hence, concluded that data relevant to this request was not readily available in the public domain.
Part
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Part
08

Apple Pay Statistics: Denmark

An estimated 2 million (calculation) individuals in Denmark use Apple Pay.

USEFUL FINDINGS

RESEARCH STRATEGY:

Our research began by searching through global organizations that provide analytical data for various countries to find statistics depicting how widely used Apple pay is in Denmark, including the number of Apple Pay users, Apple Pay payments, and merchants accepting Apple Pay.
We came across a report from Mckinsey but it merely stated that global payments revenue grew to $1.9 trillion. It did not provide details related to how widely used Apple Pay is in Denmark.
Adapt Agency provided stated that the number of Apple Pay users in Denmark amounts to one-third of the nation's population.
We decided to use this information for triangulating an answer.
Statista, which is a business statistical site, reported that Apple's global year-end user base was 383 million users. Nonetheless, the data was not specific to the use of Apple Pay in Denmark.
We made use of analytical apps from Similar Web to acquire an analysis concerning the topic, but there was no relevant data available for the country. Similar Web presented data for the United Kingdom but statistics for Denmark may be limited. We could not find data for Denmark to help us understand how widely used Apple Pay is in Denmark.
There was no way we could utilize the data obtained in synchronizing an answer for how widely used Apple Pay is in Denmark. Hence, we concluded that the requested data is not currently available in the public domain. Therefore, we used the information we gathered during our research to provide an estimate, which is available below.

NUMBER OF APPLE PAY USERS IN DENMARK

  • In 2018, Apple Pay was accepted at more than 5,000 additional online stores in Sweden, Finland, and Denmark.
  • In Denmark, Apple Pay is currently available at Jyske Bank and Nordea. Nonetheless, there remains a small proportion of customers in the country utilizing the payment service. Nordea reportedly has about 1.3 million clients while Jyske Bank has approximately 900,000, which represents one-third of the total population in Denmark.
  • The current population of Denmark, as of this writing, is 5,777,869 people.

CALCULATION

To calculate the number of Apple Pay users in Denmark, we multiply the country's population by the proportion of people that use the service, which goes as follows:
5,777,869 * (1/3)= 1,925,956 or 2 million people.
Again, 1.3 million + 900,000 = 2.2 million individuals from both Nordea and Jyske Bank. Presumably, approximately 2 million people in Denmark use Apple Pay when we round down using mathematical concept. From the two analyses, we observe a disparity of close to 200,000 individuals, which is negligible as compared to the rounded up or rounded down figures. Hence, it is logical to use the 2 million figure.
Part
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Part
09

Digital Banking: Denmark

There is widespread use of digital banking service in Denmark, with about 89% of Danes using digital banking services. These services are accessed through mobile and tablet applications, and official companies' and government websites. With more people leveraging the convenience afforded by mobile applications, and online services for everyday needs, digital banking, amongst other digital services such as online shopping, gaming, and consumption of video content; has grown over the years. Ninety-two per cent of Danes who frequently use the internet, make use of digital banking services.

OVERVIEW OF DIGITAL BANKING IN DENMARK

  • Denmark ranks among the top four countries that have digital economies, as well as one of the top countries that make use of internet services.
  • In 2005, only about 49% of Danes made use of internet banking services, and about 63% of Danes had used the internet in the preceding three months. These numbers have increased in recent years.
  • More recently (in 2018), about 89% of Danes made use digital banking services and 92% of Danes had used the internet in the preceding three months.

PREVALENCE OF DIGITAL BANKING IN DENMARK

  • The growing use of digital banking services in Denmark seemingly had both positive and negative effects. On the one side, the country's digital economy is booming, but on the other side, according to a Bloomberg report, the increase in the use of digital banking services in Denmark coincides with a 60% increase in card fraud.
  • With limited cash payments made in shops, it is estimated that 80% of Danes shop online. Denmark's almost-cashless economy makes it possible for most Danes to purchase everyday products such as a litre of milk via a digital transaction.
  • With the rise in MobilePay Apps, it is estimated that less than 25% of transactions in Danish shops involve cash.
  • According to a survey of Nordic consumers by Deloitte, approximately 33% of Danes have used their smartphones to buy goods or transfer money.
  • With the high level of broadband penetration in Denmark, the Danish government has made a commitment to go “digital by default”, with paper used only as a last resort.
  • Apart from individuals, businesses have also embraced the 'digital by default' notion of the government with almost all services being offered online, from goods and service sales and purchases to online registration and payment of business taxes.
  • Owing to the rare use of cash in Denmark, businesses mostly buy and sell from each other using online transfers, while individuals pay for goods and services using mobile phones and payment cards. Danish banks offer special payment cards for children as young as 8 years.
  • Start-up businesses with correct documentation can find all the information they need to set up a new business online and have it active within 24 hours.
  • The wide-spread use of digital services and secure online banking and money transfers are made possible because each citizen possesses a unique digital signature to sign documents.

HOW DO PEOPLE ACCESS DIGITAL BANKING IN DENMARK

  • With many Danes using digital transfers to carry out everyday transactions, many shops and businesses in Denmark leverage digital banking services.
  • The prevalence of mobile apps for transactions, and online money transfer services in Denmark has led to the provision of apps by banks such as Danske, to cater for the needs of their consumers. Danske launched a 'pocket money' app that can be downloaded to any phone or tablet. The app helps children and parents track their money and monitor their savings.
  • With the level of digitization in Denmark, Danes require, apart from the necessary documentation, a NemID, NemKonto, and a Dankort card.
  • NemID is a card/piece of paper that contains personal identification codes on it and is used to make logins secure. However, as a supplement to the NemID, individuals can now download an app on their phone or tablet.
  • NemKonto is used when an individual has acquired a Danish bank account, it is then registered with the Danish tax authorities and this account, which is also known as an 'easy-account', allows public authorities to make direct payments to the individual.
  • Dankort is a type of debit card issued by banks and is mostly used for shopping, to allow for easy electronic payments. It is widely used in Danish shops as it saves businesses the fees they would normally incur to process payments.

RESEARCH STRATEGY

We began this research by searching through news articles and reports from sources such as Bloomberg and The Copenhegen Post. With these sources, in combination with annual reports such as The Digital Economy and Society Index 2019, we were able to uncover the required information. Through banks such as Danske we were able to understand the use of mobile and tablet applications for money management, transfer and transactions.
Part
10
of twelve
Part
10

Digital Banking By Industry: Denmark

No information could be found on industries in Denmark that have most embraced digital business banking services on the public domain. Below is an overview of the information that was available.

RELEVANT INSIGHTS

  • Business in Denmark benefits from digitization. Businesses generally buy and sell from each other using online transfers, and ordinary people pay for goods and services using mobile phones and payment cards.
  • The health industry in Denmark relies most on digital services.
  • Denmark has approximately 110 banks of which 81 are domestic banks and 29 foreign-controlled banks. The domestic banks hold 87.52% of the industry’s total assets and the foreign banks have 12.48% of the assets.
  • In 2018, 89% of individuals used the internet for online banking whereas 90% of individuals used the internet for online banking in 2017. However, over the last 10-year period the digital banking penetration in Denmark has increased from 61% in 2008 to around 89% in 2018.
  • According to an e-commerce survey conducted by PostNord13, payment by card is the dominant form of e-commerce payment in Denmark and is approximately 75%.
  • The top industries in Denmark include agriculture, forestry and fishing, manufacturing, mining, quarrying, utility services, construction, trade and transport, information and communication, and the services' industry.

BANKS IN DENMARK

  • The top banks in Denmark are Danske Bank A/S, Nykredit Bank A/S, Arbejdernes Landsbank, Jyske Bank, Sydbank, Nordea Kredit Realkreditaktieselskab, DLR Kredit A/S, Spar Nord Bank A/S, Saxo Bank A/S, and Realkredit Danmark A/S.
  •  MobilePay was launched by Danske Bank in 2013 in Denmark and Finland as a peer-to-peer payment service.
  • The leading challenger digital banks in Denmark include Hufsy, Lunar Way, N26, and Revolut.
  • N26 uses Mambu’s flagship core system to enable mobile-only banking to integrate systems in support of its growth strategy.
  • Lunar Way uses an application called Tink’s API to give digitally-savvy consumers in the Nordic region an overview of their finances picture and allow them to make payments from one application.

RESEARCH STRATEGY

Information regarding industries that have most embraced digital business banking services in Denmark is not available in the public domain. This is because the information was catered around the top digital and traditional banks in Denmark. The information around their top clients or sectors due to competitive and confidential reasons was not disclosed by the banks. Moreover, some banks were found to track and provide the digital service usage at the retail level but no such tracking or reporting was available at the business or industry level. Below is a deep dive into the various strategies that we deployed to find the information.
We started off our search by looking at industry reports on the digital banking sector in Denmark in sources such as Zion Market Research, PRNewswire, MarketsandMarkets, Deloitte, BlueBack Global, and Transparency Market Research. Such information is best covered in such reports, so we preferred to check them as prima facie. The reports enumerated the information on the digital business banking side and showed that Denmark has the lowest numbers of account-to-account transfers per capita with 121, although the Danes are estimated to have the highest usage of direct debit transfers with roughly 36 direct debits per capita. But there was no relevant information available around the industries that have had the highest uptake of digital business banking services in Denmark.
Next, we looked through government reports on the banking industry in Denmark in sources such as Denmark.dk, Corporate Finance Institute, and Statista. The idea was to check the information regarding key industries or sectors to which the banking industry is exposed in terms of its business to assess the risk exposure of the industry from credible sources. However, again all the information found catered around the broad industry level and no information was available on digital business banking services in Denmark.
As there was no readily available information, we tried to triangulate the requested information. First, we searched for the top industries in Denmark from sources such as Blue Back Global, Statista, and VentureRadar. The idea was to check information regarding the top industries along with its dependence on the highest uptake of digital business banking services in Denmark. We were able to find a list of industries, but no information on the percentage that was dependent on digital business banking services in Denmark.

Next, we looked for the information by scouring through the websites and annual reports of the top digital banks in Denmark such as Danske Bank A/S, Nykredit Bank A/S, Arbejdernes Landsbank, Jyske Bank, Sydbank, Nordea Kredit Realkreditaktieselskab, DLR Kredit A/S, Spar Nord Bank A/S, Saxo Bank A/S, and Realkredit Danmark A/S. The idea was to go through the filings, press releases, and websites of these banks to garner information around the key industries served by these banks through their digital services. We thought that if we could find information on the top banks we could have triangulated the information by stating that since "X, Y, Z are the top industries utilizing the digital services of the top banks by market share in Denmark they are very likely to be the top industries that have had the highest uptake of digital business banking services in Denmark overall." However, none of the banks disclosed this information in their filings. All the information found catered around the credit exposure of different banks to the various industries/sectors in Denmark. Hence, the triangulation strategies did not provide any relevant results.
Next, we expanded our scope and looked for the industries in Europe that have most embraced digital business banking services. We looked through sources such as MasterCard's newsroom, Crowdfund Insider, and Global Newswire. The idea was to review information at a broader level and therefore we looked for these industries at a European level to use as a proxy for Denmark. However, a thorough search around the leading banks and sectors in general in the above-mentioned sources did not yield any fruitful results. All data found focused on the services and product profiles of various banks and broad trends i.e. 84% of consumers pursue digital banking regularly, 63% use mobile banking apps from traditional banks, one in five from digital-only banks and almost two-thirds expect the demand for digital banking solutions to even increase in the future in Europe. Moreover, we found that digital banks such as N26 use Mambu’s platform, and Lunar Way uses Tink’s API for consumers in support of its growth strategy. What industries they are serving, however, is not explicitly mentioned.

Part
11
of twelve
Part
11

Challenger Digital Banks: Denmark

While there is no public information available to exactly determine the top challenger digital banks that offer banking services to businesses in Denmark, it was possible to reliably note that Lunar Way, Hufsy, N26 and Revolut may be of value in assessing the sector. Below is an outline of the research strategies used to better understand why the particular information requested is publicly unavailable, as well as a deep dive into the relevant insights.

I. NAME: LUNAR WAY

  • Website: https://www.lunarway.com
  • Lunar Way provides banking services for the Snapchat generation which provides banking licenses in partnership with local banks.
  • Lunar Way aims to create a 100% digital experience and avoid small print sections.
  • Lunar Way A/S was founded in 2015 and is headquartered in Denmark.
  • "The vision behind Lunar Way is to create an experience where it is possible to access your finances in a more understandable, transparent and personal way."

II. NAME: HUFSY

  • Website: https://www.hufsy.com/en
  • Hufsy is a smart bank account and full-scale financial system for fast-moving companies and freelancers.
  • Hufsy helps to save time and provide all the key business metrics of the company.
  • Hufsy gives all real-time insights and the dashboard that gives all the essentials, for fast and easy decision-making.
  • Hufsy doesn’t need to be the first mover in the neo and challenger bank industry. The neo and challenger bank industry is still in its early stages and customer market share will shift around among new neo and challenger bank players and the incumbent banks.
  • Hufsy is more focused than its competitors to provide a compelling value proposition that works for its clients.
  • Hufsy APS is headquartered in Germany with offices in Denmark.

III. NAME: N26

  • Website: https://n26.com/en-eu/business-account 
  • N26 Business is the free bank account for freelancers and the self-employed. They can "earn 0.1% cashback on all purchases made, and enjoy free card payments worldwide."
  • "You don’t have to deposit a certain amount or meet earning threshold requirements, so you can open an account even if you’re just starting out."
  • "#client, #office, #bizness… create your own personal hashtags and attach them to your transactions to organize them better."
  • "The N26 online business bank account uses artificial intelligence to automatically categorize your spending. Forget clunky spreadsheets—it’s all there in a clear overview in the app."
  • N26 entered the Denmark market in 2018.
  • N26 is headquartered in Berlin, Germany.

IV. NAME: REVOLUT

  • Website: https://www.revolut.com
  • Revolut operates as a digital challenger bank that has added ApplePay to its growing list of services.
  • In Denmark, Revolut has already amassed roughly 5,000 users, without spending a dime on marketing. Needless to say, Revolut has high expectations for the Danish market and the Nordic region as a whole.
  • Accordingly, Revolut has set an ambitious goal of achieving 50,000-100,000 Danish users at the end of this year with 20% using Revolut as their primary bank account and service.
  • According to the companies' website, Revolut is headquartered in the United Kingdom with an operational office in Denmark.

RESEARCH STRATEGY

The research team started the search by looking at the market reports on related to determining the top challenger digital banks specific to Denmark in sources such as GlobeNewswire, PRNewswire, MarketsandMarkets, and Transparency Market Research. Since bona fide key players are usually best covered in such reports, we preferred to check them all but to no avail. Most of the Reports enumerated the information on challenger bank market along with the mention of some key players operating in the global neo and challenger bank markets (e.g., DBS, Simple, Koho Financial, Hello Bank, Fidor Solutions, MyBank, Pockit Limited, Holvi Payment Services, Monzo Bank Limited, Starling Bank, N26 GmbH, Atom Bank, Moven, Jibun Bank Corporation, Timo, Kakao Bank, Tandem Bank Limited, and WeBank), but there was no mention of the Denmark market in specifically.
Next, we started to search for pre-compiled lists of the top challenger banks in Denmark in sources such as Hernaes.com and Inc.com. The idea here was to conduct an exhaustive search through such companies that offer services to businesses and find their market penetration data to rank them as the top in Denmark. However, none of the lists provided any names of companies headquartered in Denmark.
We then started to search for information on Lunar Way’s competitors published by leading company databases such as Bloomberg, Hoovers, Crunchbase, CB Insights, and Manta. However, most of the profiles found such as CBInsights and ZoomInfo only provided names of Lunar Way’s European competitors and none of the companies were based in Denmark. We also started searching for leading challenger banks in Europe. The idea here was to find any names of challenger banks based in Denmark. We came across numerous lists published by VentureRadar, Fintech Futures, TechSavvy, and others. After checking all the sources, we could find the list of top challenger banks globally.
From there, the team filtered the two banks that are based in Denmark. However, the lists only mentioned the names of banks such as Hufsy (headquartered in Germany with operations in Denmark) and Lunar Way (headquartered in Denmark) with no reasoning of the particular method used to designate them as 'top.'
Finally, we started to search through all the European companies to find any company that had established operations in Denmark as well. We used credible and relevant sources like FintechNews, Penser, Finextra, TechCrunch, and VentureBeat.
After an exhaustive search through all the sources found earlier, we were able to find two more companies, namely N26 and Revolut, that provided services to business and are operational in Denmark. Thereby, using the above-mentioned strategies, we were able to identify four companies in total (Lunar Way, Hufsy, N26, and Revolut) that provided services to businesses in Denmark. However, no information could be found on the companies’ market penetration in Denmark. This may be due to the unavailability of any existing market study and the companies being relatively new in Denmark. For instance, Lunar Way was only founded in 2015 and N26 entered the Denmark market only in 2018.
Part
12
of twelve
Part
12

English Usage: Denmark

The population of Denmark that speaks English is 3,059,351 (52.95%), and 270,391 people (62.39%) in Malta speak English.

ENGLISH AS A FIRST OR SECOND LANGUAGE IN MALTA AND DENMARK

  • Maltese is the first and primary language in Malta with 97.25% of the population speaking it while English has a 62.39% usage in the country.
  • Danish is the first and primary language in Denmark with 98.39% of people speaking it while English has a 52.95% usage in the country.
  • Denmark has a population of 5,777,812 people as of Friday, August 16, 2019, according to the latest United Nations estimates.
  • According to the most recent United Nations estimates, Malta has a population of 433,389 people as of Friday, August 16, 2019.

USE OF ENGLISH FOR BUSINESS IN MALTA AND DENMARK

  • Malta is a bilingual country, and the constitution recognizes both Maltese and English as official languages.
  • For citizens of Malta, both Maltese and English can be considered to be native languages, and since English is recognized worldwide as one of the main business languages, this gives Malta a leading edge over several other countries.
  • Also, "all road signs are in English, driving is on the left, and international and national driving licenses are acceptable," which indicates that business transactions are done in English, as proven by the car rental sector in Malta.
  • Danish people are considered the best in the world in speaking English as a second language. They are the world's best non-native English speakers.
  • "There are strong correlations between English proficiency and income, quality of life, ease of doing business," and the Danish people are good at speaking English. Hence, English is used widely in Denmark for business.

USE OF ENGLISH IN MALTA AND DENMARK IN ADVERTISING OR MEDIA

  • The use of foreign Languages in advertising in Denmark is allowed, and English is often used in ads to reach the Danish consumer.
  • The use of English is official in Malta; hence, by implication, the adverts in the English language will be high as well.

CALCULATION

  • Population of Denmark that speaks English = 5,777,812 * 52.95% = 3,059,351
  • Population of Malta that speaks English = 433,389 * 62.39% = 270,391
Sources
Sources

From Part 02
From Part 06