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:

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

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

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

• Revolut is a UK-based digital banking alternative that offers prepaid debit card (MasterCard or VISA), currency exchange, cryptocurrency exchange, and peer-to-peer payments.
• The company joined the Malta digital banking because the Maltese travel a lot and thus it provides free travel insurance, currency exchange, point of sale payments, and ATM withdrawals in Malta.
• More than 35,000 people have signed up to the digital banking platform.
•  Website 
•  Headquarters: UK
•  Registration ID: No. 08804411

Paymix

• Paymix now Prospero offers corporate Debit Cards (MasterCard), instant SEPA transfers, payment options in 60+ currencies and multiple user access.
• Paymix offers business solutions for both corporate and personal customers.
•  Headquarters: San Gwann, SGN3000, Malta
•  Website 

Money Plus Card

• According to their website, "Money Plus Card, written as Money+Card, represents a new era of branchless financial services available through the internet."
• Moneypluscard is regulated by the Malta Financial Services Authority and is a Mastercard Principal Member.
• They offer services to Private Clients through a secure website. 
• Corporate Clients can also open accounts.
•  Headquarters: Vlaetta, Malta
•  Website 

RESEARCH STRATEGY

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

Broad Search For Denmark Google Pay Data

Using Business Publications

Triangulation

USEFUL FINDINGS

• 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.

• 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

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

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:

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.

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

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.

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

DIGITAL SERVICES TRENDS: MALTA

TREND #1: Blockchain applications

• Introduction of PSD-2 (Second Payment Service Directive) will help to increase the number of operators in the payment services space and establish themselves in Malta.
• The blockchain applications will help to advise and assist the institutions by ensuring good corporate governance, risk management, and internal controls infrastructure, and reviews of financial instrument tests, among others.
• Malta offers various blockchain-related incentives backed by government entities. The Blockchain Committee is supported by the Malta Stock Exchange; it assists in the formulation of a strategy geared towards addressing these emerging technologies.
• In July 2018, the Maltese Parliament passed three bills into new laws as 'Malta Digital Innovation Authority Act (MDIA Act),' the 'Innovative Technology Arrangements and Services Act (ITAS Act),' and the 'Virtual Financial Assets Act (VFAA).'
•  Blockchain applications are actively being used by the forward-thinking firms to investigate the technology better and ascertain its implementation for smart legal solutions.

• According to KPMG, Malta is gradually progressing towards becoming the “Blockchain Island,” and the country has recently established the Malta Digital Innovation Authority.
• The newly established blockchain bank will enable all cryptocurrency-related firms to get credit for blockchain firms and serve high-net-worth individuals.

• Malta is planning to launch a bank that will allow cryptocurrency startups to get access to banking services that were only available for companies outside the crypto industry.
•  OK Blockchain Capital Limited is an investment arm of OK Group which has invested in the Maltese company RnF Finance Limited; additionally, it has applied with the Malta Financial Services Authority for a license to work as a credit institution to commence operations in 2019.

TREND #2: Electronic Money Institutions (EMI)

• Fintech businesses in Malta are dominated by the Electronic Money Institutions (EMI) and Payment Institutions (PI/ PSPs), both of which are classified as the financial institutions in Malta.
• EMIs can issue electronic money, subject to the prior authorization of the Malta Financial Services Authority (MSFA). Additionally, the EMIs can freely transfer electronic money to third parties.

• 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.

•  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

• 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.

• 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%.

•  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

• 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.

• 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.

•  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

• 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.

• 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.

•  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

CO-WORKING SPACE PROVIDERS IN DENMARK

• Co-working space operators with three or more locations in Denmark include INCUBA, Symbion, and Regus.
• INCUBA operates co-working spaces in three locations in Aarhus (link to website). They are located in areas such as Inge Lehmanns, Åbogade, and Palle Juul-Jensens.
• Symbion operates co-working spaces in five locations in Copenhagen (link to website). They are located in the Copenhagen and Frederiksberg municipalities.
• Regus operates co-working spaces in 15 locations across Denmark (link to website). They are located in cities such as Aalborg, Odense, and Copenhagen.
• Over 20 co-working space providers such as Republikken, Studio Copenhagen, and others, operate only one location in Denmark. Kontorpladser is the only known provider that operates two locations in Denmark.
• Global co-working space operators such as WeWork and Spaces operate only one location in Denmark.
• Co-working space operators that focus on the European market such as Talent Garden and UMA Workspace also operate only one location in Denmark.
• According to a 2019 report published by the Cushman & Wakefield, Copenhagen was ranked fifth on the European Coworking Hotspot Index.

RESEARCH STRATEGY

CO-WORKING SPACE PROVIDERS IN MALTA

•  SOHO Malta and Regus are the only co-working space providers that operate at least three locations in Malta.
• SOHO Malta operates co-working spaces in three locations (link to website). They are located in towns/districts such as Gzira, Paceville, and Ta' Xbiex.
• Regus operates co-working spaces in three locations (link to website). They are located in towns/districts such as Swatar and St Julian's.
• The remaining known co-working space providers in Malta such as Glashaus Startup Space, SC Cowork, Grand Central, 230 Works, The Penthouse, Marco Polo Malta Co-working (Marco Polo Hostel), The Hub Malta, BusinessLabs Malta, Your Urban Office, and Chiliz Blockchain Campus operate only one location.
• SOHO Malta may be considered the most popular co-working space provider in Malta as it is the only company that has been named one of the best co-working spaces in Malta and Europe.
• According to a recent article on digital nomad destinations, “the culture of co-working did not hit Malta until very recently.”
• The 2019 European Co-working Hotspot Index did not include any Maltese cities.

RESEARCH STRATEGY

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

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:

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

• Lunar Way's official website can be accessed here.
• Lunar Way is a banking application that is directed to millennials. The app includes a deposit account and a payment card that allow users to have "a branch-free banking experience".
• Venture round funding in 2019: $14,422,798.

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

• Authenteq official website can be accessed here.
• Authenteq is a networked automatic identity verification platform. It verifies identities of users and sellers for easier transactions on marketplaces.
• Series A funding in 2019: $5,000,000.

YOURPAY

• Yourpay's official website can be accessed here.
• The company offers API linked payment gateway for e-commerce merchants. It helps merchants to receive payments through VISA, MasterCard, Mobilepay, and ViaBill. It charges 1.35%-2.25% per transaction depending on the transaction amount.
• Private equity values are not disclosed publicly.
• Venture round funding 2019: $24,407,812.

KEYHOLE

• Keyhole's official website can be accessed here.
• Keyhole is an Insuretech and Fintech company, which reduces the cost of rental via monthly membership.
• Seed round funding in 2019: $520,555.

HIVEONLINE

• Hiveonline's official website can be accessed here.
• The company helps small businesses to manage "reputation, transactions and agreements". It offers financial services for unbanked communities without "the need for bank records or formal ID".
• Seed round funding in 2018: undisclosed amount.

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:

• 1 Euro = 1.11 US Dollar
• 1 Danish Krone = 0.15 US Dollar

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

Overview

• The process starts with first obtaining a NemID signature.
• Then next step is an online registration with the Danish Business Authority.
• A company will also need to sign up its employees for workmen’s insurance.
• Anyone who is not a citizen in any of the Nordic countries will apply for a residence and work permit.

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

• Denmark is ranked by The World Bank as the easiest place to do business in Europe.
• Denmark's company registration procedures are among the simplest in the world.

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.

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.

• You must then submit the required documentation to the 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

• No exchange control rules and regulations exist in Malta since they have been abolished in view of Malta’s EU membership. Thus, funds can be transferred in and out of Malta without any restrictions.
• Banks may require supporting evidence for payments and receipts.
• Business can be conducted in any currency.

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

• The tax structure for limited liability companies in Malta is appealing to most of the investors from abroad.
•  The corporate tax is set at 35% but it can be reduced to 5% if an offshore company is created in Cyprus owning the shares in an LLC in Malta.
• There is no tax imposed for dividends and interests of a bank account.
• There are no licenses fees, withheld tax on royalties, or dividends.
• The standard VAT is set at 18% and it is applicable to companies in the trading sector in the EU.

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

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.

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.