Digital Banking: Denmark, Malta

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Part
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Denmark Business Statistics

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 185,324employees.
  • 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.
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Part
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Malta Business Statistics

In 2018, Malta had 113,256 registered business units, which represented an increase of 8.1%, or 8,458 registered units from 2017. 647 out of the 692 businesses in Malta listed in Hoovers' business directory have less than €50 million ($55.53 million) in annual turnover.

MALTA BUSINESS STATISTICS

  • In 2018 Malta had 113,256 registered business units which served an increase of 8.1%, or 8,458 registered units, from 2017.
  • The total number of sole proprietorships in Malta was 53,395 in 2018.
  • 2018 welcomed the birth of 12,482 new businesses in Malta.
  • 110,149 businesses in Malta had less than ten employees.
  • The total number of businesses with 250 or more employees in Malta was 131 in 2018.
  • Based on Hoovers' business directory of companies and enterprises in Malta, only 45 businesses have annual revenues greater than €50 million ($55.53 million). The remaining 647 out of 692 businesses listed in the business directory have less than €50 million in annual turnover.

ADDITIONAL INFORMATION:

  • There were 4,514 business deaths in Malta in 2018.

RESEARCH STRATEGY

For information on the proportion of all businesses have less than €50 million in annual turnover, we leveraged Hoovers' database. The database published a business directory of companies and enterprises in Malta, numbering 692, with their corresponding annual sales revenue estimates in USD. We then used a currency converter to determine the value of €50 million in USD to determine the number of businesses in Malta with less than €50 million in annual turnover.

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Denmark: Challenger Digital Banks

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
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Part
04

Malta: Challenger Digital Banks

Meta Luminor and UK-based Revolut are the top challenger digital banks in Malta with a market presence of over 85,000 customers and over 35,000 customers, respectively. Other top competitors in Malta's digital banking market include Paymix and MoneyplusCard, digital business solutions for private and corporate customers.

Meta Luminor

  • Meta Luminor offers advisory services to source IBANs in 27 FIAT currencies, merchant-managed e-payment gateways and processing solutions for New Tech Industries in jurisdictions like blockchain and DLT, gaming, medical pharma, and even Crypto Exchanges.
  • In 2018, the company grew their market from 17,000 users to 85,000+ users representing 20% population market penetration of Malta’s population.
  • Website
  • Headquarters

Revolut

Paymix

Money Plus Card


RESEARCH STRATEGY

To find the top challenger digital banks in Malta, we searched articles, financial news media, and banking industry statistics and trends concerning Malta. According to fintech and digital banking publications, there are numerous digital banking companies operating in Malta (approximately 40). So, we first attempted to list those companies from financial articles, publications, and journals, providing four companies. Unfortunately, those articles did not classify the top players, nor did they give their market penetrations. Then, we tried to find additional data on these companies through their websites and Maltese fintech or digital banking reports to determine their dominance in the Maltese market. Luckily, we found only two sources that indicated the actual market penetration by Meta Luminor and Revolut but we could not locate the market penetration of other digital banking companies. Moreover, we could not find individual companies' financial reports or market reports. We changed tactics and decided to determine the top challengers by the size of the company or the latest available revenue estimates. For this, we leveraged corporate financial databases. By comparing the competitors, we were able to identify other digital banking companies operating in Malta, such as Izola Bank, Banif Bank, FIM Bank, and Fidor Solutions. However, we still could not find any information regarding market share/penetration.
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Part
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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.

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Part
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Google Pay Statistics: Malta

After an extensive search through global and regional data, statistical databases, and analytical apps, details about Google Pay's presence in Malta do not appear to be available in the public domain. However, the research team was able to gather valuable insights about Google Pay and its relationship with Revolut in Malta.

USEFUL FINDINGS

GOOGLE PAY AND REVOLUT
  • Google Pay was in 28 countries as of 2018 excluding Malta. The name "Google Pay" came after Google and Android merged. By implication, Google Pay was not in Malta. This provides insight into why finding Google Pay statistics specific to Malta is difficult, given that Malta was not on the list of countries that Google Pay had any presence in as of 2018.
  • According to Albert Herd, "Apple Pay is now supported in Malta, through Revolut. But little did Android users know that Google Pay has been supported by Revolut for more than a year now!"
  • Google Pay had a total of $102 billion in transaction volume in the European region, including Malta, since Malta is in the European Region.
  • Online bank payments are available in Malta through various methods, including Google Pay.
  • Revolut began Google Pay operations in July 2018 in Malta and was projected to have 60,000 users by the end of 2018. This provides an estimate of how many Google Pay users there could be, but there is no update available for this projection.
ADDITIONAL FINDINGS
  • The Global Mobile Wallets 2019 report included a prediction that the number of e-wallet users worldwide is expected to reach a ten-digit figure in 2019.
  • The number of non-cash transaction per inhabitant in Malta saw a CAGR of 10.4% from 2012 to 2015. The CAGR in 2015-2016 for mobile payments overall in Malta was 3.3%.
  • "According to reports from April 2018, Google Pay has reached 100 million installs in just a few months, and throughout 2018 and 2019 it expanded its global presence as well, rolling out in many countries, including Japan, Croatia, the Nordics, UAE, Chile, France, Switzerland, Israel, and Germany," as reported by the 2019 report.


RESEARCH STRATEGY

We began by our research going through global organizations that provide analytical data for various countries of the world in a bid to find the statistics showing how Google Pay is used in Malta, specifically concerning the number of users, payments, and merchants accepting Google Pay. We came across a World Payments Report but the report only had CAGR for Malta for payments but did not provide details about how Google Pay is used in Malta. Economic Times discussed the number of Google Pay users in India (25 million) which was not the data we were looking for.

We then looked for statistical data on the European Payment Council in Europe, as Malta is part of the council. We found predictions that Google Pay is expected to reach 100 million users between 2018 and 2019, but this data did not help us solve the questions about how Google Pay is used in Malta.

Next, we consulted online statistical databases that report on both the regional and international level. Through this search, we found information on payment methods in Europe, but these findings did not provide anything specific to Malta or Google Pay's presence in Malta.

We also used analytical apps to find information specific to Malta and Google Pay's presence in Malta. However, we were only able to find information specific to the UK. Without a direct answer or the data necessary to triangulate one, we are unable to determine the number of Google Pay users, the number of payments by volume or overall, or the number of merchants using the service in Malta.

Based on our findings, we know that data specific to Google Pay's presence in Malta is limited. Most data that did refer to Malta did not discuss Google Pay. We did find that there is a link between Rovolut and Google Pay's presence in Malta. Google Pay in Malta makes use of Revolut as a platform for services.
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Apple Pay Statistics: Malta

No information could be found on the public domain indicating how widely used Apple Pay is in Malta. Below is an overview of the information that was available.

USEFUL FINDINGS

Apple Pay in Malta

  • Apple Pay was officially launched in Malta and 12 other countries on June 16, 2019. Apple Pay is relatively new to Malta, therefore, statistics about Apple Pay are currently difficult to come across.
  • Apple Pay has expanded to multiple European countries such as Bulgaria, Croatia, Cyprus, Estonia, Greece, Latvia, Liechtenstein, Lithuania, Malta, Portugal, Romania, Slovakia, and Slovenia in 2019. In May 2019 Apple Pay had not yet launched in Croatia, Portugal, Greece, Malta, and other EU countries.
  • Apple’s mobile payment system is, however, now available to millions of users across Europe including Malta.
  • According to Malta Today, a publication in Malta, Revolut launched Apple Pay in Malta in June 2019.
  • Revolut customers in Malta can add their card to Apple Pay with the Revolut app or the Wallet app and pay for online purchases.
  • Revolut, an online banking platform, is available on the App Store in Malta. Its users can add their card details to Apple Pay and utilize their Apple devices to pay for purchases in local shops in Malta.
  • Furthermore, Apple Pay has support for Malta on its support page.

Research Strategy

We began our research by carrying out a broad search on global financial publications (such as the Financial Times and Economic Times) that report on business and the performance of various companies in a bid to find statistics showing how widely Apple Pay is used in Malta, the number of Apple Pay users in Malta, the number of Apple Pay payments by volume in Malta, and the number of merchants accepting Apple Pay in Malta. The Financial Times published articles on what Apple credit cards got right or wrong in its market, but did not publish any information relevant to the request. The Economic Times provided data on Apple's global finances but, again, nothing relevant to the request.

Next, we consulted regional and local publications to see if we could find relevant data within the region. The local news publications in Malta only published articles centered around the anticipation of Apple Pay in Malta and when it would become operational. Again no relevant data was published. Media publications such as the New York Times were also consulted, but here we found articles such as "Apple Says Profits Were Flat, Citing Slump in China" which were not helpful.

We also searched for the statistics on Statista, a statistical database that has data on millions of topics. Statista had data on the number of Apple Pay users worldwide in 2018, however, none of its statistics were on Malta specifically.

We evaluated the information collected through our research and could not find data that was sufficiently reliable and could be used to triangulate the requested information. After applying the above strategies, we concluded that the requested information was not available on the public domain.



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Part
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Apple Pay Statistics: Denmark

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

USEFUL FINDINGS

  • As of 2018, the number of Nordic financial institutions that support Apple Pay is limited. Clearhaus reported that across 33 nations, it only supports around 7,500 merchants. At least two-thirds of those merchants are in Apple Pay regions.
  • According to Statista, the Apple's worldwide year-end user base in 2018 was 383 million users, which indicated an increase from 127 million over the prior year.
  • As reported by Mckinsey, in 2017, global payments revenues rose to about $1.9 trillion, which served as the "best single year of growth" within the past five years.
  • In 2017, over 30% of digital commerce volume globally came from mobile applications.

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. (Source 3)
  • 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 million 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.
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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 percent 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.
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Part
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Digital Banking: Malta

Over 51% of Maltese access their banks over the internet; over 10% of Maltese access digital banking services through mobile applications. More than 35,000 Maltese have signed up to the digital banking platform by Revolut. These, among others, are indicators of the widespread use of digital banking services in Malta. A detailed account of our findings is below.

USE OF DIGITAL BANKING SERVICES IN MALTA

  • Digital banking in Malta is made possible under the Electronic Money Institution license, which is issued by the Government.
  • Maltese are gaining confidence in digital banking platforms, and they are relying on it more.
  • As of 2018, about 51% of Maltese used one digital banking platform or another.
  • The average age of a Maltese digital banking services user is 32 years.
  • More than 35,000 Maltese signed up to the digital banking platform Revolut, within a month of its launch.
  • Malta is the largest market for Revolut; 10% of Maltese already use the digital banking platform.
  • FIMBank launched FIMBank Direct, a digital banking platform targeting both personal and corporate customers.
  • There is an increase in adoption of Digital Banking by Maltese and the number is expected to grow.

HOW MALTESE ACCESS DIGITAL BANKING SERVICES

  • More than 51% of Maltese access their banks over the internet.
  • More than 10% of Maltese access digital banking services through mobile apps.
  • Customers access the Revolut platform through its mobile application.
  • Maltese also access digital banking services through work platforms such as Slack, Xero and Zapier.
  • In Malta, digital banking platforms such as MoneyPlusCard and PayMix offer their services only through the web.
  • LeuPay, a digital banking platform, is offered through its mobile application.
  • The FIMBank Direct platform provides an integrated solution through which customers can manage their finances and banking requirements.
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Part
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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 Kvist & 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
12
of twenty-three
Part
12

Digital Services Trends: Malta

Blockchain applications, electronic money institutions, conversational banking, Revolut, and digital banking platforms are some recent trends in digital services being offered in the financial services sector in Malta.

DIGITAL SERVICES TRENDS: MALTA

TREND #1: Blockchain applications

DESCRIPTION:
WHY IT IS TRENDING:
COMPANY AT THE FOREFRONT:

TREND #2: Electronic Money Institutions (EMI)

DESCRIPTION:
WHY IT IS TRENDING:
  • There are 28 credit institutions and 35 financial institutions, including 22 payment institutions, and 7 electronic money institutions licensed by the Malta authority under the Financial Institutions Act.
  • Malta continues to be positively ranked for its performance in the financial sector. The development of Malta as an international financial center is reflected in the range of financial services available.
COMPANY AT THE FOREFRONT:
  • CSB Group provides clients with professional assistance for the Licensing of Electronic Money Institutions (EMI), throughout the application procedure, company establishment, and post-licensing support.
  • Integritas Group provides assistance with the Licensing of Electronic Money Institutions (EMI) in Malta.

TREND #3: Chatbots and conversational banking

DESCRIPTION:
  • Start-ups are creating a stir in the financial service's industry in Malta by integrating chatbots. They enable companies to deliver immediate and insightful information to their customers.
  • Some national banks like Central Bank of Malta are planning to integrate chatbots that can add value services for their customers, i.e., to personal and corporate accounts.
WHY IT IS TRENDING:
  • According to eMarketer, nearly 90% of bank-related interactions will be automated by 2022. Alternatively, the banks are likely to save an estimated $0.60 on average per chatbot interaction and can resolve a number of customer queries.
  • Chatbots can handle a high volume of requests with an accuracy of nearly 97%.
COMPANY AT THE FOREFRONT:
  • Central Bank of Malta is using a chatbot help desk to provide information about the customers' lei code, ID verification, and searching for the entity code, among others.
  • The service helps the Central Bank of Malta to automate the simple questions and take action in less time and fewer resources.

TREND #4: Revolut

DESCRIPTION:
  • Revolut is a digital banking alternative that offers services like currency exchange, cryptocurrency exchange, peer-to-peer payments, and debit/credit cards (MasterCard or VISA).
  • Revolut has secured a European banking license with Lithuania’s central bank.
  • Revolut does not charge fees for most of its services but includes a usage cap for its services. It also uses inter-bank exchange rates for its currency exchange on weekdays and a markup ranging from 0.5% to 1.5% on weekends.
  • Revolut has an open API, which helps companies to integrate their software to its business platform.
  • The Revolut App provides instant access to Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and XRP by exchanging to/from 25 fiat currencies.
WHY IT IS TRENDING:
  • Revolut serves more than 80,000 clients in Malta and expects to add about 60,000 customers by the end of 2018. Additionally, Revolut Business serves nearly 70,000 corporate accounts in Europe.
  • The Revolut customers increased by nearly 40% each month as a number of customers try to rely on the system.
COMPANY AT THE FOREFRONT:
  • Buddy is a payroll software available internationally; it has integrated with Revolut to optimize the payroll transactions by making them faster and easier to operate.
  • The benefits of using Revolut, together with Buddy, reduces processing and transaction costs and allows for commission-free multi-currency payments.


TREND #5: Digital banking platforms

DESCRIPTION:
  • Financial institutions, instead of providing competitive bank-owned options for services like payments and money movement (e.g., bill pay, P2P, A2A), allow the use of third-parties for optimizing transactions.
  • In 2019, savvy banks and credit unions adapted to the scenario and went for modernizing their digital banking platforms in Malta.
  • As per Vipond, more banks and credit unions are working to offer an optimal digital experience and incorporate personalization in their digital banking platforms.
  • Digital banking assistants for prominent banks support and advise its users, signifying an evolution of customer-bank relationships.
WHY IT IS TRENDING:
  • Increased number of consumers are performing cross-border transactions; additionally, the digital banking platforms streamline the process of fund transfer.
  • Digital banking platform offers the customers with access to a range of services like fund control, managing cards, loans, among others.
  • According to a recent survey by Bank News, about 42% of customers preferred using banking services from a community or regional banking institution over a national one, because they offer a better banking experience.
COMPANY AT THE FOREFRONT:
  • FIMBank launched a secure digital banking platform, FIMBank Direct to target the needs of both personal and corporate customers.
  • FIMBank Direct provides high-level security protection through its authentication app, FIMBank CAM.
  • Medirect Bank also plans a significant digital transformation to become compliant with the Payment Services Directive 2 (PSD2) in Malta over coming 18 months.
  • According to the Head of Business Development, at Medirect Bank, the bank is undertaking one of the biggest projects to transform its online banking and wealth management platform in Malta.


RESEARCH STRATEGY

To identify the trends in terms of digital services being offered in the financial services sector to businesses in Malta, we scoured through credible industry reports, and blogs from publications like Deloitte, PwC, KPMG, CoinSpeaker, GVZH Advocates, Business Insider, among others.

We have identified the trends based on the industry report/industry blogs that highlight the current and different types of digital products/services offered to businesses, not other/external trends that are impacting the industry. Some services are common to businesses and consumers, but we have focused on the business aspects of the service only.

We have also used a source that is older than 24 months, i.e., Chetcuti Cauchi Advocates Report because it provides a description and adaptation of the current trend, and shows the industry trend is still relevant when corroborated with KPMG report.

The trends have been identified based on for Malta, based on the news articles/industry and adaptation by the Malta-based companies and/or international companies located in Malta. We have taken the above-identified trends as currently "trending" based on its repetition as a trend across 2 or more reports. The trends have also been based on the services being offered in the industry to show the following trend adaptation by the companies. Next, we focused on the companies which have been following the trend or have plans to implement it as the "forefront" companies of the respective trend.
Part
13
of twenty-three
Part
13

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.ai, EU Startups, and Startup Guide. Valuer.ai 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
14
of twenty-three
Part
14

Co-working Space: Malta

While there is no publicly available information to fully answer the question, the available data was used to pull together key findings: SOHO Malta (three locations) and Regus (three locations) are the only major co-working space providers operating in Malta. The “culture of co-working” is a recent phenomenon in Malta and there are no Maltese cities listed on the 2019 European Co-working Hotspot Index.

CO-WORKING SPACE PROVIDERS IN MALTA

RESEARCH STRATEGY

To identify the number of major co-working space providers in Malta, we first examined the locations listed on co-working databases such as Coworker, CoworkBooking (Pembroke, Valletta, and Birgu), and Coworking.Coffee. As these databases include thousands of co-working spaces across hundreds of countries, it is assumed that they would provide a comprehensive list of active locations/providers in Malta. The website of every provider listed on these databases was examined to identify the number of co-working spaces that they operate. Among the seven providers examined, only SOHO Malta operates co-working spaces in at least three locations in Malta. Glashaus Startup Space, SC Cowork, Grand Central, 230 Works, The Penthouse, and Marco Polo Malta Co-working (Marco Polo Hostel) operate one location only. Coco Hub is not a co-working space provider as the co-working space listed on its website is operated by Grand Central.
To ensure that every popular co-working space provider in Malta have been examined, we next conducted a press search for articles that talked about co-working in Malta and Europe. The articles published by MaltaProfile and Big Seven Travel talked about the best co-working spaces in Malta and Europe respectively. An examination of five additional providers has revealed that only Regus operates co-working spaces in at least three locations in Malta. The Hub Malta, BusinessLabs Malta, Your Urban Office, and Chiliz Blockchain Campus operate one location only. We have also discovered that Malta has a relatively small co-working market as it is a recent phenomenon for the country and Maltese cities are not known to be co-working hotspots.
Lastly, we examined some of the largest co-working companies in the world or Europe that were not listed in the databases and articles mentioned above. We have assumed that global players similar to or larger than Regus may also operate in Malta. However, we have discovered that companies such as WeWork, Spaces, Servcorp, Impact Hub, and Mindspace do not operate any location in Malta. Additionally, Europe-based co-working space providers such as Talent Garden, Silver Square, and UMA Workspace also do not operate any location in the country. Therefore, there are only 12 known co-working space providers in Malta, and only SOHO Malta and Regus operate at least three locations in the country.
Part
15
of twenty-three
Part
15

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
16
of twenty-three
Part
16

Digital Banking By Industry: Malta

While there is no publicly available information to identify the 3-5 industries in Malta that have most embraced digital business services, available data was garnered that is concentrated on the services and product profiles of the various banks along with broad trends (e.g., Blockchain) impacting the overall exposure to various industries in Malta. Below is an outline of our research strategies to better understand why the information requested is publicly unavailable, as well as a deep dive into the findings.

Broad Trends

  • The digital banking penetration in Malta has progressed at a slow pace over the past 5 years growing from 43% in 2013 to 51% in 2018. However, over the last 10-year period, digital banking penetration in Malta has more than doubled from 25% in 2008 to around 51% in 2018.
  • Among the 26 banks for business operating in Malta, some of the leading banks providing both traditional and digital services to business customers include Bank of Valletta, HSBC Bank Malta, FIMBank, Sparkasse Bank, IIG Bank, Akbank TAS, Credoarax, Agri Bank, Banif Bank, and FCM Bank.
  • The various financial products offered through digital business banking by banks in Malta include credit cards, retirement products, life insurance packages, wealth management, fixed-term deposits, savings accounts, and other services for small- to medium-sized organizations.
  • FIMBank, which is one of the top banks in Malta, launched 'FIMBank Direct', a secure digital banking platform targeting the needs of both personal and corporate customers.
  • The same provides a comprehensive service suite which includes savings accounts, fixed-term deposits, and local and crosses border payments with a selection of available currencies.
  • Revolut is one of the latest digital-only banking platforms to be launched in Malta and has achieved the biggest market penetration level yet in the country, with nearly 10% of the entire population signing up within a short period.
  • The various suite of services offered by the platform include a prepaid corporate debit card (MasterCard or VISA), currency exchange, cryptocurrency exchange, and peer-to-peer payments.
  • As per the 2018 Annual Report of MeDirect Bank, which is the third-largest bank in Malta, 'Financial & Insurance sector'; 'Manufacturing' industry and 'Information & Communication' industry was the top ones with the highest uptake of banking business credit services as corroborated by the bank's credit exposure to these sectors.
  • Blockchain technology is one of the major trends in the Malta digital banking space and as per an announcement in late 2018, Malta is about to get a bank in form of RnF Finance Limited that will finally begin servicing crypto and blockchain companies as well as high net worth individuals who, until recently, have been shunned by traditional banks.

Research Strategy:

After an exhaustive search, your research team was not able to find any direct information apropos of the top industries that have had the highest uptake of digital business banking services in Malta. All the information found catered around the top digital and traditional banks in Malta, an uptick in the retail scenario for digital banking, trends in the digital banking space and the top sectors to which banks in Malta have the highest credit exposure. The primary reason for the information to be missing might be the lack of disclosure by banks around their top clients or sectors due to competitive and confidential reasons. We have provided an outline of the strategies used for your perusal and to help shed light on how/why we determined details are not available.

Our first strategy was to scour through the industry reports on the digital banking sector in Malta from Deloitte, McKinsey, KPMG, Market Radar, Bloomberg, Reuters, etc. These industry reports are a key source of information 
for the industry profile; however, the information found centered around overviews of the banking sector in Malta along with the top banks operating in the space and the key regulations that have impacted the space.

The second strategy was to scour through the credible databases and websites of the key regulatory and other authorities for the banking industry in Malta such as Central Bank of Malta (the Bank).org, Maltaprofile.info, EBF.EU, Malta Financial Services Authority (MFSA) database, Malta Bankers' Association (MBA), IMF, etc. All these regulatory and banking databases are a potential source of information around the exposure limits and the key industries/sectors to which the banking industry is exposed in terms of its business to assess the risk exposure of the industry. However, the data broadly focused on industry statistics and governing regulations along with the recent blockchain and other fintech trends that are impacting the banking space in Malta. IMF did mention that the "core domestic banks high exposure to property-related loans, together with the rapid house price appreciation", posed a risk to the banking sector in Malta but did not elaborate on the digital banking services exposure of various sectors in Malta.

Our third strategy was to try to triangulate the information by scouring through the websites and annual reports of the top business banks in Malta such as FCM Bank, MeDirect Bank, digital-only banks such as Revolut, Bank of Valletta, HSBC Bank Malta, etc. The idea was to go through the filings, press releases, and websites of these banks and try to garner information around the key industries served by these banks through their digital services. Since the banking sector in Malta consists of just 26 banks, garnering the information on the top banks could have allowed the team to triangulate 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 Malta they are very likely to be the top industries that have had the highest uptake of digital business banking services in Malta overall." However, none of the banks were found to disclose any such information in their filings. All the information found catered to the credit exposure of different banks to the various industries/sectors in Malta.

The research team tried additional strategies that include scouring through local and credible media articles (e.g., Time of Malta, Malta Today, Forbes, Bloomberg, Reuters, etc), statistical websites, and Malta banking blogs (e.g., HSBC Malta, Maltaprofile, KSI Malta, etc) but no pertinent information could be located and all the data found was around the rate of digital penetration in Malta, top banks for business banking in Malta and trends in the sector.
Part
17
of twenty-three
Part
17

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.ai.

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.ai's official website can be accessed here.
  • Roger.ai is an accounting automation tool that cuts time spend 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
18
of twenty-three
Part
18

FinTech Companies: Malta

Singular is an international game development company with four offices and two development bases around the world. Singular has raised a total of $5.7 million in funding, in one Series A round, on December 18, 2018.

Singular

  • Singular has raised a total of $5.7 million in one Series A funding round, on December 18, 2018.
  • Singular is an international game development company with four offices and two development bases around the world.
  • More than 100 developers continuously strive to make the world’s most "innovative" and "outstanding" gaming solutions.
  • The company website may be viewed here.

Binance

  • Binance is a cryptocurrency exchange platform that combines digital technology and finance.
  • The company provides access to exchange digital currency pairs on the market, while enabling a safe and efficient deal with anyone, anytime and anywhere.
  • Binance has raised a total of $10 million in funding over 3 rounds. Their latest funding was raised on Oct 23, 2018 from a Venture- Series Unknown round.
  • Their website can be viewed here.

OTHER COMPANIES

Thrive Labs

  • Thrive is a blockchain-based trading platform to buy and sell advertising at very low fees.
  • People get paid for data sharing and for reviewing the quality of each website in the ecosystem.
  • Thrive Labs has raised a total of $25 million in funding over 1 round. This was an Initial Coin Offering round on September 1, 2017.
  • Their website can be viewed here.

Yovo

  • Yovo was founded in 2017 and is working on building the world’s first Tokenised Mobile Network.
  • Yovo, which operates SIM and virtual SIM-based networks, is using the Stellar blockchain to create the world’s first global tokenised mobile phone network.
  • The Malta-based company has raised €20 million in venture funding.
  • Their global headquarters has thirty employees. [4]
  • Their Facebook page can be viewed here.

Bundle

  • Bundle Network is an online platform connected to various exchanges.
  • They are enabling users to trade multiple coins & tokens within seconds of execution.
  • This is through one account and one click, at the best price possible, either in bundles or individually.
  • The firm was started in 2017.
  • In August 2018, the company raised a total of $100,000 in funding from Coinsilium Group through a seed round.
  • Their website can be viewed here.

Research Strategy

The information on FinTech companies in Malta and received series A, B, C or D funding in 2018 or 2019, is not available. The reason likely being that the fintech industry is still in its infancy and hence most of the investment is sourced from founders and "friends and family" investors, that eventually leading to Series A investment. It is rarer that fintech firms established in Malta are already at the Series B or C investment stage as per Mondaq.

In order to find the remaining 8 companies with all the required information, we attempted multiple strategies.
We first looked into company financial data portals like Crunchbase, Angel List, Zoominfo, and Dealroom. These portals have the option to search for the company type along with the location and are known to keep verified financial information of industries across the world. Using this we were able to find four fintech companies in Malta which were indeed fintech and had funding raised.

We then moved on to find trending news articles from the fintech industry in Malta where we were hoping to find a list of a few successful fintech startups. We scanned through multiple national and international fintech industry news like Times of Malta, Maltaprofile, Fintech News, Lexology, Mondaq, and IBIS Intelligence. The other news articles found covered how Malta is transforming into a bitcurrency friendly island.

In an attempt to find more companies with all the data we checked the investors that have funded the identified companies. The idea here was to check these investor companies individually to find out if they have funded any other fintech companies in Malta. However, none of these investors had any information on their other funding ventures.
Part
19
of twenty-three
Part
19

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
20
of twenty-three
Part
20

Registering a New Company: Malta

Setting up a company in Malta has several benefits, among which are a fast incorporation and a low corporate tax imposed. Foreign entrepreneurs looking to open a limited liability company in Malta can have complete ownership in their firms, complete confidentiality, and an easy registration procedure with the Maltese authorities, which is subject to approximately two working days.


Overview of the Process of Starting a New Company in Malta

  • When opening a business in Malta, foreign enterprises will consider the amount of money, also called a share capital they will have to invest in the company. From this point of view, the Commercial Code only requires private and public companies to deposit a specific amount of money.
  • There are no differences in the process of setting up a brick-and-mortar business vs. an online company. All companies would follow the same procedure.
  • Most companies in Malta are limited liability companies (LLC) or Maltese holding companies. Although there are other types of companies, these two structures attract many foreign investors since they have low maintenance costs and an efficient taxation system allowing tax exemptions for foreign businesses.
  • In the case of a Maltese private company, the minimum amount accepted is 1,165 euros, while for the public company the minimum share capital is approximately 46,600 euros of which only 25% must be deposited prior to registration.
  • Private limited companies with authorized share capital above the minimum threshold must deposit 20% of the amount of money.
  • Both types of companies must have at least two shareholders, even if the Company Law also allows a single shareholder to establish a company in Malta.
  • Each private limited liability company requires documentation about the fundamental conditions under how the company will be operating.
  • The required documents are from the Memorandum of Association and must be drafted according to Maltese law.


Time and Cost required to open a Company in Malta

  • Depending on the type of company you’re setting up, the registration process can be quite efficient. It can be completed within a two-day window. A good first step is to register your company’s name online, with the Maltese Registry of Companies.

Required documents

  • The Memorandum and Articles of Association (M&A), which state details about the company, such as whether it is private or public, what the business intends to do, who the subscribers are, and where the registered office is located. These documents must either be signed by subscribers or by their legal representation. That means that you do not have to be physically present to register your company in Malta.
  • Proof that initial share capital has been deposited (in the case of an LLC).
  • Proof of identification for the subscribers.
  • After the documents are submitted to the Registry of Companies, your registration will be completed within 24 hours. In some cases, registration fees are required; the fee will depend on the amount of authorized share capital.
  • For up to 1,500 euros of share capital, the registration fee is 245 euros.
  • The registration fee ranges from between 245 and 2,250 euros, depending on the amount of share capital. You can partially complete the company registration online, but either you or your legal representatives must be physically present to sign off on certain documents.
  • Applying for a VAT or employer number can be done online.

Opening A Bank Account In Malta

  • A company bank account is needed to complete the company incorporation.
  • Once the share capital is deposited, the bank will provide a certification which is required by the Malta Financial Authority before issuing the registration certificate.
  • Once you have your Certificate of Incorporation that confirms details like the name of your company you can open a bank account.
  • Such banks offer different services including checking books, debit/credit cards, internet, telephone and phone banking, bank accounts in a wide choice of currencies and other traditional banking services.

Exchange Control


Confidentiality

  • All company documents are public. However, confidentiality can be maintained through the services of a fiduciary in which the name of the shareholders will not be disclosed in the public registry.
  • Details of the ultimate beneficial owner must be submitted to the Maltese Registry of Companies.


Taxation of Maltese Companies


Part
21
of twenty-three
Part
21

English Usage: Denmark and Malta

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
Part
22
of twenty-three
Part
22

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, IT connectivity, and one of Europe’s largest ICT clusters offer unique business opportunities in the sector.
  • The past five years, 50 fintech startups have registered themselves 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
23
of twenty-three
Part
23

FinTech Climate: Malta

The climate for FinTech businesses in Malta in welcoming, as the government continues to make it conducive for FinTech companies to strive through its policies and setting up incubation centers. FinTech companies such as eCommerce has already been setup in Malta.

MALTA'S FRIENDLINESS TO FINTECH COMPANIES

  • The government is looking for ways it will get a new niche in the finance sector.
  • They see fintech as a driver for growth in the industry.
  • In its 2018 budget the government announced that it intends to set up a new blockchain lab at the Malta Information Technology Agency.
  • They also launched a web portal that focuses on distributed ledger technology and cryptocurrencies.
  • The government will also be launching a blockchain hub, to support startups in working with the technology.
  • The government said they will be setting up a blockchain taskforce.
  • Financial software entrepreneurs are given the opportunity to set up in one of Europe’s fastest-growing financial centers.

MALTA'S POSITION AS LEADER IN FINTECH

  • Fintech start-ups coming to set up in Malta will be given access to a technology business incubator based at the University of Malta.
  • There is also an innovation hub run by the Malta Information Technology Agency for Fintech start-ups.
  • A state-of-the-art technology park is already in building.
  • These initiatives will further enhance the supportive environment and infrastructure for fintech companies.
  • Over the past few years Malta had already become an attractive jurisdiction for fintech start-ups.
  • The promulgation of the EU First Payment Services Directive, has resulted in Malta experiencing an influx of fintech start-ups.
  • Fintech companies are also using Malta as a springboard to nearby markets, in particular those of Africa.
  • eCommerce is one of the first companies to take advantage of what Malta has to offer, such as fiscal benefits, a strategic location in the center of the Mediterranean and cultural proximity to Europe.
  • Malta’s finance sector has recently seen new operators entering the market.
  • Changing market dynamics driven by technology-savvy consumers have created a fertile environment for fintech.
  • There are already fintech companies based. They have been drawn to Malta because it provides a wealth of talent, both tech and finance.

Sources
Sources

From Part 03
Quotes
  • "Lunar Way is the bank for the snapchat generation (quote Ken Villum Klausen), which rather than obtaining their own banking license is partnering with local banks."
  • " The bank is aiming at the Nordic market, and secured €4,2 million in funding from SEED Capital Denmark and several undisclosed investors before launching outside Denmark."
Quotes
  • "Lunar Way is digital banking for the millennial generation. They believe in banking that is easy, personal and driven by mobile technology. They think banking should be about having a digital extension of the lives they live individually in order to manage their finances in an open, friendly and collaborative way."
  • "Lunar Way wants to provide the mobile banking experience for the millennial generation in Scandinavia that no one else will."
Quotes
  • "Hufsy is a smart bank account and full-scale financial system for fast-moving companies "
Quotes
  • "Germany-based challenger bank N26 is bringing its services to Denmark, Norway, Poland, and Sweden. This news comes just weeks after the fintech officially launched in the UK. "
  • "Many customers in Europe live an increasingly international lifestyle, traveling and doing business abroad. Since our initial launch, we received a lot of requests from N26 enthusiasts outside the eurozone to offer our product in their countries. "
  • "We listened to this feedback and are excited to provide our banking product to customers in Denmark, Norway, Poland, and Sweden today."
Quotes
  • "Long anticipated, digital challenger bank Revolut has added ApplePay to its growing list of services. "
  • "The option to add a Revolut card to ApplePay is reportedly popping up across Europe. "
  • "Apple Pay was announced over 4 years ago so it is a bit of a surprise that Revolut took so long to add the popular digital payment platform"
Quotes
  • "Revolut’s venture into the Nordics signals that the company is ready to battle it out for its share of the Nordic users. "
  • "In Denmark, Revolut has already amassed roughly 5.000 users, without spending a dime on marketing. Needless to say, that Revolut has high expectations towards the Danish market and the Nordic region as a whole."
  • "Accordingly, Revolut has set an ambitious goal of achieving 50-100.000 Danish users at the end of this year with 20 % using Revolut as their primary bank account and service. "
Quotes
  • "According to the report, the global neo and challenger bank market was approximately USD 18,604 million in 2018 and is expected to generate around USD 394,648 million by 2026, at a CAGR of around 46.5 % between 2019 and 2026."
From Part 04
Quotes
  • "Throughout the past decade due to delayed payment patterns of what was then the norm for businesses in Malta, Meta Luminor’s Managing Director Philip Maurice Mifsud, also kept a full-time job as the reliance on clients settling within 30 days back then in Malta was just not possible, so to sustain his family he was forced to be both self-employed as well as employed. "
  • "In early 2018 Philip Maurice Mifsud during his employment with a now known technology stack provider, he decided to also take on as a hobby the support for the growth of a known London based Multi-Currency E-Wallet Fintech firm. The growth strategy in Malta worked so well that he basically grew their market exponentially from 17,000 users to 85,000+ users in under a year (Malta’s population is 432,858 meaning a 20% population market penetration) with ZERO marketing spend and even Won Innovator of the Year at the Malta Blockchain Summit."
Quotes
  • "Headquarters Mellieha, Malta"
Quotes
  • "Banks will charge you when you spend or transfer money abroad. We're not about hidden fees or rubbish exchange rates, and that's why 6M+ people already use Revolut"
Quotes
  • "More than 35,000 Maltese have signed up to the digital banking platform Revolut, less than a month since the company launched its services in Malta, MaltaToday has learned. "
  • "“This makes Malta the country with our biggest market penetration level yet, with nearly 10% of the entire population signing up in a matter of weeks,” country manager Dimitris Litsikakis told MaltaToday. "
  • "Revolut is a digital banking alternative that includes a pre-paid debit card (MasterCard or VISA), currency exchange, cryptocurrency exchange and peer-to-peer payments."
Quotes
  • "PayMix offers Solutions for both Corporate and Personal Customers (Through its new brand "PROSPERO")"
  • "Paymix is a principal member of MasterCard Europe and is authorised by the Malta Financial Services Authority, under the Financial Institution Act 1994, for the issuing of electronic money and the provision of payment services."
Quotes
  • "The PayMix Pro Account has been designed as an alternative cost-effective payment solution to your traditional business banking account."
  • "With PaymixPro account; you will have online access to your account, dedicated IBANs under your name, corporate Debit Cards (Mastercard), instant SEPA transfers, payment options in 60+ currencies and multiple user access."
Quotes
  • "Electronic Money Institutions (E-Money Institution, EMI) are a new era in banking with a focus on remote services, mobile apps, and streamlines, simple services. The most noteworthy examples are probably Paysera, LeuPay, and N26."
Quotes
  • "Send money, make purchases and get paid with your mobile phone Cashless, fast and convenient, Epayzz is the new generation of mobile payment solutions. It is a smartphone application that enables clients to pay for products and services and send funds to others, without a payment card or payment account."
Quotes
  • "Money Plus Card, written as Money+Card, represents a new era of branchless financial services available through the internet. We were founded in 2015 and licensed in 2016 and are a Payment Institution that offers simple, fast, and seamless financial transfers and card services without big bank bureaucracy, legacy technology, high fees, and frustrating jargon."
  • "We are based in the dynamic country of Malta, in the capital city of Valletta. We are regulated by the Malta Financial Services Authority and are a Mastercard Principal Member which means we can issue our own payment cards for our clients. Card issuance defines our brand and what we stand for: “Money+Card” means simply that we give you a card and very much more."
  • "We are not a bank. Money+Card breaks from tradition by providing payment accounts that can be used like a bank account, and all with a worldwide card, and simple electronic payments worldwide. Our payment services are provided online using advanced digital platforms and can support mobile phone, tablet, and computer applications. Our clients can access our online environment 24-7, beyond the frustrating business hours of operation of banks, and are available when our clients need them."
From Part 09
Quotes
  • "The Use of Internet Services dimension accounts for a variety of online activities, such as the consumption of online content (videos, music, games, etc.) video calls as well as online shopping and banking."
Quotes
  • "Finland, Sweden, the Netherlands and Denmark, have the most advanced digital economies in the EU followed by the UK, Luxembourg, Ireland and Estonia."
Quotes
  • "online banking penetration in Denmark from 2005 to 2018. In 2018, 89 percent of all individuals used the internet for online banking, but usage was higher among those who had used the internet within the last three months, at 92 percent."
Quotes
  • "Nordic countries pride themselves on being further ahead than most when it comes to digital banking. But in Denmark, the advances have coincided with a jump in cyber theft."
Quotes
  • "We are becoming an increasingly cashless society, and this influences how we give our children pocket money and teach them about money. That is why Danske Bank has developed Pocket Money, a new digital solution to help both parents and children keep track of the money."
Quotes
  • "The Danish banking system is rather simple and trustworthy, making moving to Denmark a little less scary for those of us that just really dislike communicating with banks. Most Danish banks also offer online banking and banking apps, so you can manage all your finances from your phone or computer! "
From Part 11
From Part 12
From Part 13
From Part 14
From Part 15
Quotes
  • "84% 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"
  • "Convenience remains the biggest advantage of digital banking solutions at a time when Europeans demand security more than ever as their most important criteria for using digital banking solutions (67%)"
  • "While the large majority of people are not aware of the European open banking initiative (85%), almost half would welcome the services enabled by open banking (43%)"
Quotes
  • "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."
Quotes
  • " N26 is using Mambu’s flagship core system, provided on a Software-as-a-Service (SaaS) basis. The vendor says it enables the mobile-only bank “to integrate systems and quickly bring services to market in support of its growth strategy"
Quotes
  • "Danish fintech Lunar Way is using Tink’s API to offer digitally savvy consumers in the Nordics the ability to see their entire financial picture and make payments – from one app."
From Part 22
Quotes
  • "Denmark’s transaction value in fintech amounts to US$11,487 million (2017). Between now and 2021, it is expected to show an annual growth rate of 16.1%, resulting in the sum of around US$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 US$11,269 million – a very impressive figure."
Quotes
  • "With a national focus on digitization and a vibrant startup community, Denmark is named the 2nd most innovative country in the world"