Digital Banking: Sweden and Poland

Part
01
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Part
01

Sweden Business Statistics

The total number of businesses in Sweden as of 2018 was 1,228,854. A total of 68,113 new businesses were started in 2018, and sole traders accounted for 15,666 of those businesses.

TOTAL NUMBER OF BUSINESSES

2018 - 1,228,854
2017 - 1,211,717
2016 - 1,200,106
2015 - 1,180,729
2014 - 1,158,349

BREAKDOWN OF BUSINESSES IN SWEDEN

Number of businesses with no employee (sole trader)

Number of businesses with less than ten Employees (1-9)

Number of businesses with less than 200 employees (10-199)

Number of businesses with more than 200 employees

NUMBER OF NEW BUSINESSES

NUMBER OF businesses with annual turnover of less than 50 million EUR

RESEARCH STRATEGY

After a thorough and wide-reaching search through Sweden business authoritative agencies' databases, media sources, and company data aggregator databases such as the Business Registration Officer of Sweden, Statistics Sweden, Hoovers, DN.se, GP, and Aftonbladet, we were able to publicly find some information regarding Sweden number of sole traders and new businesses as well as data points we leveraged to triangulate a proxy for those not found preexisting.

While OECD provided information regarding the breakdown analysis of businesses in Sweden by the number of employees (1-9, 10-19, 20-49, 50-250 over 250), the total number did not correspond with the data provided by Statistics Sweden. This informed our decision by outline the breakdown of business in the range of less than ten (one to nine), less than 200 (10 to 199), and 200 and above.

We also leveraged publicly available information regarding businesses in Sweden estimated annual turnover published by Hoovers on its database to estimate the number of businesses in Sweden with an annual turnover of less than 50 million EUR. The database published a business directory of companies and enterprises in Sweden, numbering 9,140, with their corresponding annual sales revenue estimates in USD. We then used a currency converter to determine the value of 50 million EUR in USD to determine the number of businesses in Sweden with less than 50 million EUR in annual turnover.

Calculation

Estimation of the number of businesses with less than ten employees

Estimation of the number of businesses with less than 200 employees (10-199)

Estimation of Businesses with 200+ employees

Businesses with 200+ employees = businesses with 200 to 499 employees + businesses with 500+ employees

Estimation of the total number of businesses in Sweden

  • Total number of businesses = number of businesses with zero employee (sole traders) + number of businesses with less than 10 employees + number of businesses with less 200 employees + number of businesses with 200+ employees

Estimation of the number of businesses with annual turnover of less than 50 million EUR

  • Based on Hoovers' business directory of companies and enterprises in Sweden, only 212 businesses have annual revenues greater than 50 million EUR (55.53 million USD). The remaining 8,928 out of 9,140 businesses listed in the business directory have less than 50 million EUR in annual turnover.
Part
02
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Part
02

Business Statistics Poland

The number of new businesses registered in Poland in 2016 was 43,523. However, information on the total number of businesses in the country of Poland, what proportion of all businesses are Sole Traders, what proportion of all businesses have less than 10 employees, what proportion of all businesses have less than 250 employees, and what proportion of all businesses have less than 50m EUR in annual turnover in revenue was not available in the public domain.


HELPFUL FINDINGS

  • The number of new businesses registered in Poland in 2016 was 43,523.
  • "An enterprise may be a corporation, a quasi- corporation, a non-profit institution, or an unincorporated enterprise."
  • In 2018 Poland had 823 companies listed on the stock exchange as can be extracted graphically.
  • According to European Fact Sheet, the 2018 SBA listed 1,695,991 as the total number of businesses in Poland as of 2017.
  • The total number for the non-financial business economy of microbusinesses or sole trader/proprietor businesses in Poland as of 2017 was 1,623,093 and this represented 93.1% of the total businesses in Poland.
  • The total number of persons employed in Poland by these micro-businesses for the non-financial business economy is 3,445,505 million people.
  • Microbusiness for the non-financial business economy has 1,623,093 enterprises in Poland with 3,445,505 employees.
  • Small Businesses for the non-financial business economy has 54,781 enterprises in Poland with 1,177,609 employees.
  • Medium-sized businesses for the non-financial business economy has 14,821 enterprises in Poland with 1,585,267 employees.
  • Large businesses for the non-financial business economy has 3,296 enterprises in Poland with 2,907,128 employees.
  • "In 2016, the non-financial business economy in Poland in had 1,620,219 with firms that had 0 to 9 employees which are likely to be sole proprietorship firms."
  • "In 2016, there were 3,315 enterprises with 250 employees or more in Poland."


RESEARCH STRATEGY

We began this research by visiting world/global organizations that publish statistics about various countries with Poland inclusive in a bid to find the total number of businesses in the country of Poland, what proportion of all businesses are Sole Traders, what proportion of all businesses have less than 10 employees, what proportion of all businesses have less than 250 employees, and what proportion of all businesses have less than 50m EUR in annual turnover in revenue. The global economy only gave us data as regards to companies listed on its stock exchange. Therefore, this data did not provide us with relevant information.

We then searched archives, records, and reports published by the World Bank for any insight into finding the total number of businesses in of Poland along with the other requested information. However, we could only find metrics related to doing business in Poland. We also searched records in the Organisation for Economic Co-operation and Development (OECD), which provided us with the total number of enterprise employees. However, the OECD database did not offer any specifications on the class of employees such as non-economic data or agricultural data.

Since we could not find data from world organizations we visited business statistical sites such as Statista to find data for the requested information. We found limited data for the non-financial business economy in Poland, but could not use this data to calculate the total number of businesses in the country or any other data about these businesses. We also attempted to find regional statistics. However, of the regional statistics that we found, the data could only be used for a particular sector and not the whole of Poland's business industry. For this reason, it would not be possible to triangulate the data because the estimate would not be based on fully-contextualized data.
Part
03
of twenty-three
Part
03

Sweden: Challenger Digital Banks

After thorough research, we were unable to determine the top challenger digital banks that offer banking services to businesses in Sweden. However, we were able to identify that the top challenger digital banks that offer banking services to businesses in Sweden include Lunar Way, N26, and Revolut.

CHALLENGER DIGITAL BANKS OFFERING BANKING SERVICES TO BUSINESSES IN SWEDEN:

#1. Lunar Way

#2. N26

  • Website: N26
  • "N26 Business is the free bank account for freelancers and the self-employed. Earn 0.1% cashback on all purchases you make, 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 Sweden market in 2018.
  • N26 is headquartered in Berlin, Germany.

#3. Revolut

Website: Revolut
"A global business current account for easy international payments, with prepaid business cards and an Open API."
"Transfer money to any other Revolut account (business or personal) instantly and for free. Save on transfer fees when you make payments to businesses around the world."
"Payment approval lets your team raise payments that need to be approved. Bulk payments allow you to make up to 1,000 payments with a single click. Scheduled payments allow you to, well, schedule payments!"
"Our Open API allows you to seamlessly integrate your Revolut business account into your workflow. Use it to automate cross-border business payments, send payouts to clients or employees and monitor transactions according to your business’ needs."
According to the company's website, Revolut is operational in Sweden.
Revolut is registered in England and Wales.

Research Strategy:

The top challenger digital banks that offer banking services to businesses in Sweden was not available in the public domain. One of the probable reasons for the unavailability of such information could be that there are very limited challenger banks providing services to businesses in Sweden. It could also be possible that since most of the companies identified have entered the Sweden market recently, limited information is available on their market penetration in Sweden.

We started the research by directly searching for any industry reports and market studies on the Sweden challenger banks for businesses market. The idea here was to find any report specific to Sweden since such reports usually provide the names of leading players in the industry. However, no such specific report could be found published by leading market research firms including but not limited to Deloitte, KPMG, MarketsandMarkets, Transparency Market Research and Global Market Insights. Most of the reports found using this strategy were either on the overall European market and global market and none of the reports provided any specific challenger banks from Sweden.

Next, we started to search for pre-compiled lists of all the challenger banks in Sweden. 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 Sweden. We came across numerous lists published by Corporate Finance Institute, Educba, etc, that only provided information on top banks in Sweden. However, both the lists only mentioned traditional banks and none of the lists provided any names of challenger banks in Sweden.

We then started searching for leading challenger banks in Europe. The idea here was to find any names of challenger banks based in Sweden. We came across numerous lists published by Venture Radar, Fintech Futures, etc. However, none of the lists provided any names of companies headquartered in Sweden. Most of the challenger banks found using this strategy primarily focused only on consumer banking such as Sbanken, Ferratum Money and Instabank.

As a last resort, we started to search through all the European companies to find any company that has established operations in Sweden as well in various websites such as Fintech News, Penser, Finextra, TechCrunch, VentureBeat. After an exhaustive search through all the companies found earlier, we were able to find 3 companies namely Lunar Way, N26 and Revolut that provided services to business and are operational in Sweden.

Thereby, using the above-mentioned strategies, we were able to identify three companies in total namely Lunar Way, N26 and Revolut that provided services to businesses in Sweden. However, due to the unavailability of any existing market study and the companies being relatively new in Sweden, no information could be found on the companies’ market penetration in Sweden.
Part
04
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Part
04

Poland: Challenger Digital Banks

Findings

Poland is emerging as a world leader in digital banking. Some top challenger digital banks that offer digital banking services to businesses in Poland have been recognized for their growing Polish business market penetration and the specialized digital services that cater to their business clients.

ING

mBank

PKO Bank Polski

Research Strategy

We first researched top digital banks that offer digital banking services to businesses in Poland from multiple credible sources like The First News and Emerging Europe. We then gathered more in-depth data about these banks from their company websites and reports to complete our findings.
Part
05
of twenty-three
Part
05

Google Pay Statistics: Sweden

In Sweden, the number of daily active Google Pay card holders is about 70,000; the number of Google pay payments by value would be roughly about 266.62 million Euro; the Number of Google pay payments by volume would be about 2.49 million; and the Number of merchants accepting Google Pay would be about 5,600.

GOOGLE PAY USERS IN SWEDEN

  • The number of Google Pay card holders in Sweden is 70,000.

GOOGLE PAY PAYMENTS BY VALUE

  • Google pay transaction volume by value worldwide is $102 billion.
  • There are about 24 million Google pay users in the world.
  • From the above, we can calculate the % share of the number of Google Pay card holders in Sweden = (70,000 / 24 million) x 100 = (70,000 / 24,000,000) x 100 =0.29%.
  • Assuming this share to be true for the Google Pay payments by value, we can calculate the transaction volume for Sweden by Google pay users = 0.29% of $102 billion = $0.2958 billion or 266.62 million Euro.
  • The Number of Google pay payments by value (EUR) in this country would be roughly about 266.62 million Euro.

GOOGLE PAY PAYMENTS BY VOLUME

  • Google, which recently re branded its payment offering from Tez to Google Pay, has 25 million monthly active users who have collectively carried out about 860 million transactions over the past year.
  • From the above, we can calculate the number of Google pay payments by volume in Sweden. As Google Pay users percentage share in Sweden out of world's users in 0.29%, we can calculate the number of Google pay payments by volume in Sweden to be = 0.29% of the number of world's Google pay transactions = 0.29% of 860 million = 2.49 million.
  • Therefore, the number of Google pay payments by volume would be roughly about 2.49 million in Sweden.

MERCHANTS ACCEPTING GOOGLE PAY

  • Based on a recently published article by Business Insider, 2019, expanding its collaboration with PayPal allows Google Pay to offer a streamlined and popular payment option.
  • Later, Google Pay may be able to recruit more of PayPal's 277 million active accounts to its service by promising a faster, more convenient checkout process that still uses PayPal.
  • This integration could also help PayPal by connecting it with Google Pay merchants it hasn't worked with before, helping it grows its valuable merchant base, which comprises just 8% of the firm's total users but represents 90% of its volume.
  • So, from the above, the merchant base of Google Pay "comprises just 8% of the firm's total users" and the total number of Google Pay users in Sweden is about 70,000.
  • Therefore, we can calculate the number of merchants accepting Google Pay in Sweden = 8% of 70,000 = 5,600.
  • So, the number of merchants accepting Google Pay in Sweden would be about 5,600.

HELPFUL FINDINGS

  • In November 2018, Google launched its mobile payment solution Google Pay in Sweden.
  • 14% of Google Pay users have enrolled, 10% have used and 3% use it weekly.
  • 31% of internet users prefer mobile payments including Google Pay.
  • Google Pay in the Scandinavian states of Norway, Denmark, Finland and Sweden is now officially available, opening up the service to millions within the Nordic nations who previously only had access to Apple Pay for mobile payments, having launched within the region earlier this summer.

YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY

In order to find the statistics showing how widely used Google Pay is in Sweden, we have initially looked for a precompiled information through various reports articles obtained from Deloitte, TechCrunch, eMarketer Report, Merchant Machine, World Payments Report by Capgemini, Payments in the Nordics, a report by JP Morgan, and others. These sources provided some information on Google Pay usage worldwide but, nothing specific to Sweden. We also checked through the Statistical database, Statista and found the number of Google Pay users worldwide. But again, this did not reveal anything in relation to its usage in Sweden.

Next, in absence of any publicly available report, we tried to find if there was any paid report containing the desired data. We found one paid report titled 'Payments Landscape in Sweden: Opportunities and Risks to 2022' by Global Informa Inc. The report contains most of the relevant details in relation to How widely used in Google Pay in Sweden. However, it did not provide any information in public domains.

Later, in order to find at least some statistics in relation to how widely used in Google Pay in Sweden, we tried to search through media articles such as The Local SE, NCF World, Passkit, JOA — Joy of Android, Mercury Minds, Economic Times, Business Wire, and others. Through these sources, we were able to find the number of Google Pay card holders in Sweden and assumed this to be equivalent to the number of Google pay users in this country. However, no other statistics was found. Hence, we decided to triangulate the data for Sweden based on world data and looked for global statistics in relation to the Google pay users. We found the number of Google pay users worldwide and the volume of transaction through Google pay in the world. By using these statistics, we calculated the volume of transaction through Google pay in Sweden. For this, first we tried to find the percentage share of users in Sweden out of the total number of worldwide users of Google pay. Then we used the same percentage to calculate the volume of transaction through Google pay in Sweden. Likewise, we also calculated the number of Google pay payments by volume in Sweden.

Part
06
of twenty-three
Part
06

Google Pay Statistics: Poland

There are 300,000 Google Pay users in Poland and 401,379 Google Pay payments by volume per year. Additionally, the number of Google Pay payments by value is EUR 92,000,000 and the number of merchants in Poland that accept Google Pay is 400,000.


KEY FINDINGS

  • The number of Google Pay users in Poland is 300,000.
  • The number of Google Pay payments by volume is 401,379 per year.
  • The number of Google Pay payments by value is EUR 92,000,000.
  • The number of merchants accepting Google Pay in Poland is 400,000.


ADDITIONAL FINDINGS


Research Strategy:

We began this research by looking through credible articles, business journals, and databases for Google Pay statistics in Poland. However, some of the requested information could not be readily found on the internet. However, after compiling various relevant data, we were able to extrapolate the necessary information.

We were able to find the value of the annual card payment in Poland. In addition, we found the market share of all the mobile POS payments currently in Poland that are linked to payment paid by the cardholders. Using the market share of the mobile POS payment providers, we were able to determine the number of Google pay payments by value using this formula: Percentage market share of Google Pay multiplied by Total Annual Card Payment = 2% of 4,600,000,000 =EUR 92,000,000 . Once we calculated the value of Google Pay payments, we divided it by the average value of transaction per user to get the number of Google Pay payments by volume (92,000,000/229.21 = 401,379 per year ).
Part
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Part
07

Apple Pay Statistics: Poland

After an extensive search through global payment statistics sources, regional and national statistics sources, and Apple-focused websites, it was concluded that data for Apple Pay Poland is limited in the public domain. This limited information could be because Apple Pay was launched only recently in Poland. Although none of the requested data points could be provided, some useful findings have been provided below.

HELPFUL FINDINGS

  • Apple only recently launched Apple Pay in Poland and saw a massive adoption of the product by users in the country.
  • According to The Mac Observer, Google Pay had about 300,000 users in 2018 after its launch in 2016, and it took Google Pay about four months to reach 25,000 users in Poland. However, it took Apple Pay ten days to reach about 200,000 users.
  • With 64% of people living in Poland using smartphones, Android has a market share of about 95% while iOS has a share of about 2.32%.
  • There are 253 million Apple Pay users globally.
  • There have been more than 10 billion Apple Pay transactions in 2019.
  • Apple Pay has a 70% share of the global card payment volume.
  • In 2017, it was estimated that about 87 million people used the Apple Pay app worldwide.

RESEARCH STRATEGY

The research team started by looking through reputable global resources such as Statista, Payment Cards & Mobile, and DMR in a bid to unearth data to how widely used in Apple Pay is in Poland, the number of Apple Pay users, the number of Apple Pay payments by volume and value in Poland, and the number of merchants accepting Apple Pay in Poland, but we could not find any relevant data specific to Poland.

Next, we tried to search for regional and national level statistics and publications to see if we could extract any relevant statistics. For this, we searched through sources like Statistics Poland and Inteliace Research. While we found that in recent times, Poland's payment market has been experiencing explosive growth, there was no information on Apple Pay in Poland.

Finally, we opted to search through websites that provide content on Apple products such as Apple Pay's official website and MacRumors to see if there was any available statistics on Apple Pay in Poland. While we found that Apple Pay is in 24 countries around the world, there was no relevant Poland-specific data.

Part
08
of twenty-three
Part
08

Apple Pay Statistics: Sweden

Specific information detailing how widely used Apple Pay is in Sweden is unavailable in the public domain. However, Swedish individuals have a preference for the mobile payment application Swish, which is used by two-thirds of the population.

GENERAL OVERVIEW ABOUT MOBILE PAYMENTS IN SWEDEN

  • In early 2017, Apple Pay announced that it would initiate a product launch in four nations, namely the United Arab Emirates, Finland, Sweden, and Denmark, before the year ended.
  • Apple Pay was officially launched in Sweden on October 23, 2017. The company conducted this move as part of its expansion.
  • Apple Pay could be employed with both credit and debit cards from ST1 and Nordea in Sweden and Finland.
  • In 2018, Sweden was one of two nations in Europe with the highest proximity mobile payments, as well as the highest proportion of transactions conducted via cashless methods. Sweden is considered to be a significant industry player and mobile payments in the country are usually utilized to purchase goods in stores and business locations.
  • During its launch in Sweden, Nordea Bank was the first financial institution in the nation to promote Apple Pay.
  • According to Statista, in 2017, the most popular mobile payment services in Sweden are the following:
    • 75% of mobile payment users preferred Swish.
    • 14% of mobile payment users preferred Paypal Mobile.
    • 3% of mobile payment users preferred MyWallet.
    • 5% of mobile payment users preferred other mobile payment services.
    • 21% of the respondents did not utilize any mobile payment services.
  • Sweden is considered to be one of the most cashless countries in Europe. Therefore, the nation is one of the top countries for the use of mobile payment apps.
  • One of the most widely used mobile payment applications in Sweden, Swish, had approximately 5.5 million users in 2017. In 2019, that figure grew to more than 7 million.

MOBILE PAYMENT USAGE TRENDING IN SWEDEN

  • Mobile payment methods, such as Swish, in Sweden are becoming more popular for online shopping.
  • As stated by Statista, "To be precise, the share of consumers who used such apps weekly raised from one percent in 2013, to 25 percent as of 2017. There was a particularly big increase from 2015 to 2017, when the share of consumers using mobile payment apps grew by nine percent each year."

APPLE PAY

  • Apple Pay dominated the market in 2018, beating Google Pay and Samsung Pay due to a rise in the number of users.
  • Samsung Pay made up around 17% of mobile wallet transactions, while Google Pay comprised 6%. However, Apple Pay accounted for more than two-thirds (77%) mobile wallet transactions.
  • According to Anita Solaman, the Director of debit management at Auriemma, the notably high rate of adoption for debit card users may be connected to demographics as Apple customers are typically younger, a group that is more inclined to be users of debit cards.

GLOBAL APPLE PAY USERS

  • In 2016, there were 62 million Apple Pay users, globally.
  • According to Statista, in 2017, there were 127 million Apple Pay users, globally.
  • In the year 2018, there were 383 million Apple Pay users, globally.
  • As reported by Merchant Machine, in the United Kingdom, around 24% of the mobile payment users utilize Apple Pay.
  • According to 9to5mac, "Apple Pay is supported by a limited number of Nordic banks. Clearhaus says that in all it supports 7,500 merchants in 33 countries, with around two-thirds of them in Apple Pay countries."

Research Strategy:

Our research began by searching for existing information on the number of Apple pay users, Apple Pay payments by volume, and Apple Pay payments by value from articles, news reports, statistic reports, journals, etc. We searched through Statista, Forbes, US Today, US Journal, The New York Times, etc. Using this approach, we found details on the overall/general mobile payment methods available in Sweden. Some articles listed Sweden as one of the top cashless countries in Europe, and the usual payment methods in the nation are mobile and card payments. Since our focus was on the statistical data of users, we did not find the overall/general mobile payment methods available in Sweden helpful.

We then attempted to re-focus the subject and locate data through Apple, Inc. We thought that there was documentation, a company profile (international), or press releases centered on the expansion of Apple Pay to different countries. Also, we believed that Apple, Inc. monitors the performance of Apple Pay in Sweden since its launch in 2017 and published some valuable insights for investors to reference. We tried searching through their website, specifically the Apple Pay section, and try finding relevant data. Information from the Apple Pay webpage mostly concerned the service features of the app and no specific information discussing the number of Apple pay users, Apple Pay payments by volume, and Apple Pay payments by value were available. Additionally, we searched for information through Apple, Inc., in general, which did not produce useful results.

Next, we used a triangulation approach by focusing on alternative mobile payment apps available in Sweden. We thought that if we could obtain the total number of mobile payment users, the user shares of the mobile payment app providers available in the country, average Apple Pay payments performed by users, we could calculate the requested data. We explored surveys, polls, market analysis, reliable databases, research studies, and consumer reports for this information. We were expecting to find information from the sources as Apple Pay has been in the market for years now, and we thought that numerous studies were addressing this topic. Unfortunately, there was no available data on the total number of mobile payment users, and we were only able to find global mobile payment users. We believed the information we were seeking was dependent on each other. Therefore, a triangulation approach would fail if there was one data point missing.

While we were unable to provide statistics showing how widely used Apple Pay is in Sweden, including the number of Apple pay users, Apple Pay payments by volume, and Apple Pay payments by value, we presented a general overview of mobile payment apps in the country, global mobile payment apps, and Apple Pay in Sweden. Moreover, we provided the information we gathered from Statista, and NBC News as it is essential to the request.

We assumed that the reason for the unavailability of data focused on Apple Pay is that it just recently launched in Sweden. Due to the popularity of cashless payment in Sweden before Apple Pay's arrival, the Swedish were already using other mobile payment apps, such as Swish. Information from articles, market research reports, and industry analyses on Apple Pay in Sweden, specifically about its users, have not been published yet because Apple Pay is a new entrant to the Swedish mobile payment market, although there is a large amount of Apple/IOS users in the country.

Part
09
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Part
09

Digital Banking: Sweden

Of people age 16 to 74 in Sweden, 86% use digital banking. Additionally, most people in Sweden use mobile apps to access digital banking.


INDICATORS OF HOW COMMON DIGITAL BANKING IN SWEDEN

  • According to Eurostat, Sweden is known as the fourth most common country that uses digital banking among EU member states.
  • While only 51% of adult Europeans use digital banking, 86% of people aged 16 to 74 in Sweden are using digital banking.
  • Based on a 2018 report by Copenhagen Economics, the Swedish banking sector is one of the most digitized sectors in Europe.
  • Copenhagen Economics also reported that Sweden is in the top three among the top European countries in digital banking readiness index with 55 points, alongside Denmark and Netherlands with the same index value in 2016.
  • Digital banking allows Swedish banks to reduce operational costs.
  • Digital banking has also made banking easier for the average Swedish customers in terms of costs and having several bank accounts.
  • According to SPGlobal, "Sweden is among the world's leading countries in the diffusion and use of digital technology, delivering on the country's national digital strategy."
  • SPGlobal also believes that "Swedish banks are well-equipped to cope with the challenges of digitization, thanks to lean structures and cost efficiency, and innovation through cooperation among leading banks and the government has proven successful against disruption."
  • As Sweden is gradually evolving into "a cashless society," Swedish banks need to speed up the pace of innovations in the digital banking market.
  • The banking sector in Sweden started to transform into online and digital interactions since a decade ago, in response to customer preference alteration.
  • Based on a 2017 survey by MasterCard, 56% of respondents have a positive attitude toward the digitization of banking.
  • The majority of respondents also mentioned that high availability, time-saving, and simple and easy to use are among the biggest advantages of digital banking.
  • Based on the same survey, the majority of respondents also stated that the most important criteria for using digital banking are convenience, security, and safety.


HOW PEOPLE ACCESS DIGITAL BANKING

  • According to SPGlobal, mobile banking users are increasingly using checking accounts.
  • Based on a chart by SPGlobal, there are more than 130 million logins in mobile banking.
  • Meanwhile, there are only 60 million logins for internet banking.
  • With the 21% growth between 2016 and 2018, Sweden is ranked the second fastest-growing market in global mobile banking usage as a proportion of online consumers.
  • Globaldata also reveals that mobile banking is increasingly being used to make transactions in Sweden, with more than 16 million transactions on 2018 Q3.

RESEARCH STRATEGY

We began this research for the number of digital banking users in Sweden by looking through databases such as Eurostat. We found the percentage of people using digital banking aged 16 to 74 from several European countries, including Sweden. Then, to get more detailed information about how common digital banking is in Sweden, we searched for some news, articles, reports, and surveys. Based on the information from those sources, we leveraged some useful points indicating the use of digital banking in Sweden. To get any useful information regarding how people in Sweden accessing digital banking, we searched for some data from SPGlobal and Globaldata. From those sources, we leveraged some requested data related to how people in Sweden access digital banking.
Part
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Part
10

Digital Banking: Poland

According to STX Next, digital banking in Poland is thriving and very common, with 91% of Poles making online payments and 15.5 million using online banking services at least once a month. In 2018, 44% of all Poles used the internet for online banking, and about 60% of smartphone owners in Poland have used mobile banking, the third-highest figure in Europe. People in Poland access digital banking using websites and digital mobile banking apps, with 38% accessing online banking services using a smartphone, and 6.27 having and using a mobile banking application at least once a month. mBank customers access digital banking money transfers via Facebook and mobile phones. Detailed information is in the next section.

HOW COMMON DIGITAL BANKING IS IN POLAND

  • People in Poland love digital banking with a MasterCard study revealing that over 91% of Poles who responded "make online payments at least once a month." This figure is higher than the European average for those who make online payments which is 85%.
  • According to the Polish Bank Association, around 15.5 million Poles use online banking services at least once a month, with mobile phone technology banking widely spread as well.
  • The European Banking Federation states that at the end of 2017, 35.5 million Poles had access to online banking services.
  • According to Statista, in 2018, 44% of all Poles used the internet for online banking, with usage being higher, at 57%, among people who had used the internet within the last three months.
  • About 60% of smartphone owners in Poland have used mobile banking, the third-highest figure in Europe.
  • A Deloitte’s CEE Fintech report valued Poland's Fintech market at nearly €860 million, putting the country in the lead in that part of Europe. The country's Fintech market primarily serves electronic payment methods and financial platforms.
  • Approximately 100 companies are innovating in the Polish FinTech, and the areas they work in include electronic payments, loans, credits, financial platforms, and transactions. The major domains operated by Polish FinTech companies are financial platforms and electronic payments.

HOW PEOPLE ACCESS DIGITAL BANKING

  • People in Poland access digital banking using digital banking apps. An example is the IKO mobile app which was created by PKO Bank Polski to enable its customers to conveniently manage their accounts and make bank transactions, including cardless payments, using their phones.
  • According to Central European Financial Observer, over a third of Polish bank customers or 38% access online banking services using a smartphone. The number of Polish bank customers with a mobile banking application and who use it at least once a month is 6.27 million.
  • Polish banks such as mBank have allowed their customers to access digital banking money transfers via Facebook and mobile phones since five years ago, an innovation that is only currently gaining popularity among other large European banks. mBank customers also get loan approvals in 30 seconds via their iPhones.
  • Poles also access digital banking via website visits. For example, mBank has an average web traffic score of 73, with it's main website, mBank.pl, getting more than 60% of traffic from direct visitors.

RESEARCH STRATEGY

To provide information on how common digital banking is in Poland and how people access digital banking services, our strategy was to find relevant information in industry databases and publications. This strategy led us to sources such as Warsaw Institute, European Banking Federation, STX Next, BrainCode, and D-Rating, which provided information on the digital banking sector in Poland. Relevant information from these sources was included in our findings. We also found information on how Polish bank customers access digital banking from specific banks such as mBank. The information was included in our findings.
Part
11
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Part
11

Digital Services Trends: Sweden

Current trends in digital service offerings to Swedish businesses have largely been born out of customer-facing financial applications. Account aggregation, payment initiation and invoicing applications originally geared towards individuals are now offered to businesses through a single, cloud based platform. Blockchain technology also offers businesses an opportunity to streamline data and create efficient, secure processes.

TREND 1: PRODUCT LICENSING

  • Description: Services such as account aggregation (AIS) and payment initiation (PIS) applications are integrated into a single, cloud-based platform through Application Programming Interface (API) Integration. Providers can combine multiple product offerings into one platform and license the package out to retail banks and other businesses.
  • Why is it trending? Many financial services providers began in the consumer-facing space, developed robust technology, and now look to scale their business. A natural progression is to offer the same, trusted underlying technology to banks and other businesses.
  • Example: First launched in 2012 Tink began as a consumer-facing finance App and has since repositioned its offering and now licenses its products to a number of open banking providers. The company’s technology is already integrated with banks such as BNP Paribas Fortis, ABN AMRO and Nordea.

TREND 2: WEB-BASED INVOICING AND PAYMENT SOFTWARE

  • Description: Similar to the account aggregation services discussed earlier, API integration can also provide solutions for generating and sending invoices, payment acceptance, recurring payments, and sending payment alerts.
  • Why is it trending? A study has shown that 76 percent of customers claim the invoice to be their only point of contact with their supplier. For these energy, telco, or insurance companies the payment is the most important time to improve the customer experience.
  • Example: Billogram caters to the "need of increased customer engagement for companies with recurring payments, who offer products/services where the value is often taken for granted by customers."

TREND 3: BEHAVIORAL BIOMETRICS

  • Description: Machine learning based authentication solutions that detect anomalies in keyboard/mouse or environment behavior to identify unauthorized users. Technology is based on patented continuous authentication verification technology.
  • Why is it trending? Behavioral biometrics solutions have proven to significantly reduce expenses related to fraud, false positive, and call center costs.
  • Example: BehavioSec has a well-established reputation in behavioral biometrics research and development and is trusted by industry leaders such as Cisco and Gartner.

TREND 4: CROWDFUNDING

  • Description: Crowdfunding, or peer-to-peer (P2P) lending, connects investors with borrowers through an online marketplace. Sweden is home to multiple crowdfunding platforms, with some specializing in certain industries such as real estate investing.
  • Why is it trending? 99 percent of companies in Sweden are listed as small and medium-sized enterprises (SMEs). Sweden was quick to embrace P2P lending and is today home to region’s top crowdfunding platforms. “As a lending marketplace platform the conditions in Sweden are extremely good for our operations,” said Erika Eliasson, chief investor relations officer at Lendify, a P2P lending platform based in Stockholm.
  • Example: Lendify claims to be the largest P2P lending platform in Sweden, and in 2017 was appointed one of the world’s 100 leading fintech innovators by KPMG.

TREND 5: BLOCKCHAIN TECHNOLOGY

  • Description: Blockchain is a distributed ledger recording transactions of digital ownership in a verifiable and permanent way. A blockchain ledger is managed by a peer-to-peer network of computers and governed by a common protocol.
  • Why is it trending? The possibilities with blockchain technology are wide-ranging, spanning the finance, social media, real estate, and insurance sectors.
  • Example: The Stockholm Blockchain Group advises and implements blockchain technology for companies and institutions.

RESEARCH STRATEGY

Sweden is widely regarded as one of the top countries in Europe for financial services startups. Your research team referenced numerous industry publications to identify the most talked about companies and the services they provide. "Top Fintech Trends in Sweden" was a standard title for many of the articles. The trends listed above represent the commonalities across those publications.
Part
12
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Part
12

Digital Services Trends: Poland

Cloud Banking, BLIK, Online and mobile banking, Voice Banking, and Conversational banking are five of the trends that affect the digital services that are offered to businesses in the Polish financial services sector.

CLOUD BANKING

DESCRIPTION

  • Business units and IT executives upgrade with an enterprise-level cloud solution which will be mix and match hybrid and multi-cloud solutions based on their organizational needs, maturity, and readiness; most organizations choose a multi-cloud approach.
  • A public cloud provides products-as-a-service offerings that can help banks implement business operation models to improve revenue generation, customer insights; contain costs, deliver market-relevant products quickly and efficiently, and help monetize enterprise data assets.

WHY CLOUD BANKING IS A TREND

  • According to Deloitte, “Companies across the global financial services industry have been on the public cloud journey for the last three-to-five years, with tremendous acceleration over the past 12–18 months.”
  • IBM and other major cloud computing companies support banks and help them stay compliant with the recommendations of the European Banking Authority on cloud computing.
  • Public cloud solutions are expected to dominate the market over the next decade, while business constraints such as security concerns and the limitations of existing infrastructure make it difficult for companies to fully adopt the public cloud.

A COMPANY DRIVING THE TREND

  • Idea Bank, Poland, offers an entire financial ecosystem for their clients, from cloud-based internet banking to an Uber-style ATM.
  • Idea Bank also won an award for the best innovation at BAI Retail Delivery in 2015 LINK, and this was the most notable feature for both the EFMA and BAI Awards.

BLIK

DESCRIPTION

  • The Polish Payment Standard (PPS) was created by a tie-up between six Polish banking institutions; it has embedded BLIK into banking apps so that customers can transfer money, use ATMs, and use it to pay online or in stores.
  • BLIK offers one-click purchasing, ATM withdrawals and peer-to-peer payments via smartphones.
  • The success of BLIK also highlights the “readiness of the Polish consumer to migrate to digital-only payment options.”

WHY BLIK IS A TREND

  • BLIK provides its users, both consumers and merchants, with contactless payment services at all Mastercard-branded payment terminals across the globe, like Mastercard.
  • BLIK is taking advantage of Mastercard virtual debit cards, which are tokenized by Mastercard Digital Enablement Service (MDES), to offer its services.
  • BLIK's services will enable its customers to access the most convenient point of sale payment experiences throughout the world, as per the Polish Payment Standard.
  • BLIK is very popular in Poland, with 91 million transactions completed in 2018.

COMPANIES DRIVING THE TREND

  • Poland’s BLIK Partners With Mastercard, Netflix And Uber For Payments.
  • According to Reuters, “people who use Polish payment system BLIK will soon be able to pay for things like Netflix and Uber with it.”
  • mBank of Poland also offers BLIK services at no additional fees, and can be used on any telephone with the mobile application installed.
  • mBank also organized BLIKOMANIA in 2019, which gives prizes to consumers using the feature the most.

ONLINE AND MOBILE BANKING

DESCRIPTION

  • The investment expenditure of banks on new technologies is expected to rise in 2019, due to the implementation of PSD 2, that is, a directive changing the landscape of payment services.
  • The increase will also be seen due to the creation of the Polish API standard, that is, a unified interface for access to bank accounts for third parties.
  • Polish banks are also starting to monetize the electronic tools provided to their clients.
  • All major Polish banks offer online services, from balance-cheque functions to cash transfers and deposits. These are available in the national currency, the Polish zloty (PLN) and foreign currencies.

WHY ONLINE AND MOBILE BANKING IS A TREND

  • According to Business Insider Intelligence, 56% of credit unions surveyed saw an annual increase in mobile wallet adoption, while 53% saw an increase in transactions.
  • Over 7 million Polish account holders regularly used mobile banking applications in 2018, according to the Polish Banking Association.

COMPANIES DRIVING THE TREND

  • PKO Bank Polski’s IKO mobile banking application was the “best on offer”, for the second time in a row, according to Britain’s Retail Banker International magazine’s global ranking.
  • Nine million people downloaded mobile applications, and are using locally developed services like Blik.

VOICE BANKING

DESCRIPTION

  • The continued rise of voice assistants, like Alexa, is influencing another trend in voice banking.
  • Voice interaction with digital touchpoints could generate about $3 billion in annual cost savings.
  • With technology companies applying for banking licenses and banks becoming more technological, the market for retail banking is intensifying, and voice banking is a most likely solution to how consumers will interact with, and use financial products.
  • Voice interaction will effectively convert human input into standardized data structures/process automation via APIs and RPA/IPA (robotic and intelligent process automation) to integrate customer requests with core banking systems without significant technology investments.

WHY VOICE BANKING IS A TREND

  • Voice-interaction devices, like Alexa, had sales of over 100 million units in the first three years of their availability; 52% of all smart speaker owners use their devices daily.
  • Twenty to thirty per cent of all mobile phone searches are currently done by voice. This figure is expected to increase to over 50% by 2020.

A COMPANY DRIVING THE TREND

  • PKO BP is working on a “Talk to IKO” service option, which will enable the application and other new services to be steered by voice, that is, voice banking.

CONVERSATIONAL BANKING/CHATBOTS

DESCRIPTION

  • Chatbots, or Virtual Assistants, “simulate the activities of agents in the Call Center” and can duplicate the human way of learning questions and specific languages, which is used to operate on the known data functioning on all kinds of chat applications.
  • The financial sector is using Chatbots for customer service automation, quickly replacing traditional channels such as toll-free lines or application forms.
  • Customers also appreciate virtual assistants because they solve their problems instantly.
  • Companies providing financial services are focused on supporting clients’ active money management through applications-based on communication technologies.
  • Forward-looking financial institutions” are investing in chatbots to deliver ‘contextual insights’ to the right person at the right time and through the preferred channels.
  • Financial institutions have begun transitioning to ‘conversational banking’ and are viewing chatbots as “new age contact centre executives, minimising TAT and costs”.

WHY CONVERSATIONSL BANKING/CHATBOTS IS A TREND

  • According to eMarketer, 43% of consumers of a survey prefer to address any issues they have with their banking provider via chatbots, more than visiting a branch (35%) or finding the answer on a website (35%).
  • About 90% of bank-related interactions will be automated by 2022.
  • Banks are likely to save an estimated $0.60 on average per chatbot interaction, and address more customer questions.

A COMPANY DRIVING THE TREND

  • Aviva Investors’ Chatbot: Virtual Assistant, Aviva24, is available through the website and acts as an investment advisor.
  • The Polish-speaking Chatbot is a part of the help centre, responsible for the chat channel, which supports the voice helpline and application forms.
  • The chatbot has a built-in database of pre-ready answers, which it constantly uses to resolve 30-60% of the most common customer inquiries.

RESEARCH STRATEGY

To identify the trends in terms of digital services being offered to Polish businesses in the financial services sector, we scoured through industry reports such as those from Deloitte, PwC, JP Morgan, TheMoneyCloud, Braincode, and Business Insider, among others. We identified the trends from the industry reports that highlighted the current and different types of digital products/services offered to businesses. Some services are common to businesses and consumers, but we only focused on the business aspects of the services.
We took the trends identified above as current, based on the frequency of their mentions. We included those that were mentioned as a trend or identified as an industry-disruptor across at least two industry reports.
To identify the companies driving each trend, we identified those who have been following the trend or have plans to implement it. To do this, we leveraged a source from 2016, in conjunction with an industry report from Deloitte.
Part
13
of twenty-three
Part
13

Co-working Space: Sweden

There are five major co-working space providers operating in Sweden. They are The Park, Mindpark, 7A, Helio, and Regus. Regus is the largest provider with 17 locations in Sweden.

CO-WORKING SPACE PROVIDERS IN SWEDEN

  • Co-working space operators with three or more locations in Sweden include The Park, Mindpark, 7A, Helio, and Regus.
  • The Park operates co-working spaces in three locations in Stockholm (link to website). They are located in areas such as Hälsingegatan, Magnus Ladulåsgatan, and Sveavägen.
  • Mindpark operates co-working spaces in three locations in southern Sweden (link to website). They are located in cities such as Malmö, Helsingborg, and Lund.
  • 7A operates co-working spaces in three locations in Stockholm (link to website). They are located in areas such as Strandvägen, Vasagatan, and Norrtullsgatan.
  • Helio operates co-working spaces in eight locations in Stockholm (link to website). They are located in areas such as Grev Turegatan, Kista, Hötorget, and others.
  • Regus operates co-working spaces in 17 locations across Sweden (link to website). They are located in cities such as Stockholm, Solna, Gothenburg, and Malmö.
  • Over 60 co-working space providers such as Impact Hub, Box Space, and others, operate only one location in Sweden. Some operators such as Embassy House and No. 18 operate two locations in Sweden.
  • Global co-working space operators such as WeWork and Spaces operate only one location in Sweden.
  • According to a 2019 report published by the Cushman & Wakefield, Stockholm was ranked third on the European Coworking Hotspot Index.

RESEARCH STRATEGY

To identify the number of major co-working space providers in Sweden, we first examined the operators listed on coworking databases such as Coworker and Coworking.Coffee. Coworker has listed 87 locations in Sweden, making it the database with the most comprehensive list of coworking spaces for this market. Other databases such as Coworking.Coffee has provided only 15 locations. The website of every provider listed on these databases was examined to identify the number of coworking spaces that they operate. Among the 70+ providers examined, only The Park, Mindpark, 7A, Helio, and Regus operate co-working spaces in three or more locations in Sweden.
To ensure that every popular co-working space provider in Sweden have been examined, we also studied additional providers listed on articles published by The Nordic Hub, EU Startups, and Startup Guide. These articles talked about the best coworking spaces in Stockholm. It is assumed that they focused on Stockholm as the city is known for being a coworking hotspot in Europe. The majority of the providers considered the “best” were already listed on the databases mentioned above. The additional providers examined such as A House and Goto 10 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 Sweden. Europe-based coworking space providers such as Talent Garden and Silver Square do not operate any location in Sweden.
Part
14
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Part
14

Co-working Space: Poland

The three major co-working space providers operating in Poland are Reaktor, Idea Hub and Clockwork.

REAKTOR

  • Reaktor's website can be accessed here.

IDEA HUB

  • Idea Hub's website can be accessed here.

CLOCKWORK

  • Clockwork's website can be accessed here.

Research Strategy:

In order to identify the major co-working space providers that are operating in Poland, we first looked up for a pre-compiled list of major co-working space providers in Poland. However, these type of lists were not publicly available.

Then, we consulted "Poland Coworking Space Providers Association" hoping to find a report on the growth of the providers' locations. We found the report "Coworking Europe" which shared insights on the growth of co-working spaces in Poland.

Lastly, we looked up for top websites that offer co-working spaces like Spacing and Coworker.com. By doing so, we hoped to find the number of providers that the websites are working with in order to triangulate the number. We found that these websites give locations and prices of the co-working spaces that are available. With this strategy, we were able to find a list by EU-Startups that gave the top 10 best spaces in Warsaw, which is the capital city of Poland. In the top 10 list, we separately checked each co-working space provider to establish the ones that had more than three work stations in Poland.
We found there are 174 locations offering flexible workspaces around Poland, but only three of them met the three or more locations criteria.
Part
15
of twenty-three
Part
15

Digital Banking By Industry: Sweden

According to di.se, the Swedish banking sector is far behind when compared to other European countries in terms of digital banking services.

DIGITAL BANKING SERVICES — SWEDEN

  • Klarna is one of Europe's largest banks, located in Sweden. The company's main line of business is providing digital payment services to e-commerce businesses.
  • Klarna handles 40% of all Swedish online transactions.
  • iZettle is a Swedish E-Money Institution.
  • The company provides small businesses with digital banking services.
  • POS and general digital transactions are some of the services it offers.
  • The company was bought by PayPal in 2018.
  • According to di.se, the Swedish banking sector is far behind when compared to other European countries in terms of digital banking services.
  • According to another report by spglobal.com, Sweden is among the world's leading countries in terms of industrial use of digital technologies.
  • The biggest Swedish industries in terms of the number of companies include services industry, agriculture, forestry, fishing, law, economics, science and technology, manufacturing, retail, and construction.

RESEARCH STRATEGY

Despite a comprehensive search, we were unable to determine which of the industries in Sweden have seen the highest uptake of digital banking services.

We began by examining local and international industry-specific publications to locate insights and mentions regarding industries that have most embraced digital business banking services in Sweden. Dlapiper.com, konsumentverket.se, regeringen.se, and affarsvarlden.se are some of the sources that we looked into. This search attempt proved to be futile because we only found extraneous data. However, we did find a report that stated Swedish digital banking services are not very developed when compared to other European countries.

Following this, we decided to identify the biggest industries in Sweden and see if they utilize digital business banking services extensively. We took this approach because the biggest industries in the country will likely have the highest demand for digital banking services such as wireless fund transfers. Local publications such as tillvaxtverket.se were scanned. There, we were able to find a list of companies. Later, we also searched Swedish industry reports and analyses that focus on each of the identified top industries. To find industry analyses, we searched local industry analysis sites such as gupea.ub.gu.se and triglyf.se. But, this did not return any substantial data.

Subsequently, we searched reports on digital banking market in Sweden, hoping to find segmentation of increase in demand by industries and provide it as a proxy. To find market reports, we searched various relevant market research sites such as spglobal.com and swedishbankers.se. There, we only found reports on the problems, opportunities, and weaknesses the digital banking market faces. While many reports focused on the digital marking market in Sweden, none provided data concerning industries that have shown to increase demand for digital banking services. The closest we were able to get this way was a report that stated Sweden is among the world's leading countries in the diffusion and use of digital technology across industries.

Next, we searched for reports on fintech usage by industries in Sweden. Fintech is defined as "technology that aims to improve delivery and use of financial services". Our goal was to use the information on fintech as a proxy, that is, list the industries using fintech the most as industries that have had the highest uptake of digital business banking services in Sweden. Sources such as swefintech.se, fintechbaltic.com, and various third-party publications we looked into for this purpose. But, this proved to be fruitless.

As our last resort, we decided to identify key players in the fintech industry by revenue in Sweden and look into their business and financial filings to find information on where they have seen the biggest increase of customers, or transactions, in which business areas. Our search returned no available list that sorts the biggest Swedish fintech companies by revenue. Nevertheless, we located a list of biggest fintech companies in the region, including the country of Sweden and searched their business reports in order to find relevant insights. We also searched annual reports of companies such as Klarna and iZettle but couldn't detect insights regarding industries in Sweden that use digital business banking services.
Part
16
of twenty-three
Part
16

Digital Banking By Industry: Poland

Some industries in Poland that have most embraced digital business banking services operate in the financial sector, crowdfunding & P2P lending sector, digital & mobile payments sector, big data analytics & machine learning sector, personal financial management sector, and the cryptocurrency sector.

FINANCIAL INDUSTRY/SECTOR

  • According to Braincode digital agency, the financial platform industry (financial services industry) is one of the industries with the highest uptake of digital business banking services in Poland.
  • The financial services industry represents about 25% of business organizations using Fintech services in Poland.
  • The Fintech revolution across the world is democratizing payment solutions, advancing digital banking services, and shaking "up the world of payments and investments."
  • Poland represents the largest FinTech market existing in Central and Eastern Europe.
  • The Polish Fintech market is valued at €856 million.
  • It is the 12th most competitive and significant Financial Centre in Central and Eastern Europe and is rated 45th in the world.
  • Fintechs are known to offer "digital-only" banking services.

CROWDFUNDING & P2P LENDING INDUSTRY/SECTOR

DIGITAL & MOBILE PAYMENTS INDUSTRY/SECTOR

  • The digital & mobile payment industry/sector is one of the industries with the highest uptake of digital business banking services in Poland.
  • About 13% of businesses using Fintech services in Poland are from the digital & mobile payments industry/sector.

BIG DATA ANALYTICS & MACHINE LEARNING INDUSTRY/SECTOR

  • The big data analytics & machine learning industry/sector is one of the industries with the highest uptake of digital business banking services in Poland.
  • About 13% of businesses in Poland using Fintech services are from the big data analytics & machine learning industry.

PERSONAL FINANCIAL MANAGEMENT INDUSTRY/SECTOR

  • The personal financial management industry/sector is one of the industries with the highest uptake of digital business banking services in Poland.
  • About 6% of businesses in Poland using Fintech services are from the financial management industry.

CRYPTOCURRENCY INDUSTRY/SECTOR

  • The cryptocurrency industry/sector is one of the industries with the highest uptake of digital business banking services in Poland.
  • About 6% of businesses in Poland using Fintech services are from the cryptocurrency industry.


METHODOLOGY

Research included publications of digital agencies such as BrainCode. We researched industries that have had the highest uptake of digital business banking services in Poland. Braincode revealed that the financial services industry of Poland is one of the sectors with the highest uptake of digital business banking services. The financial services industry represents about 25% of business organizations using Fintech services in Poland. It also revealed statistics that identified sectors with the highest uptake of Fintech services across Poland. We researched the link between FinTechs with digital-only banking services and Electronic Money Institutions (EMIs). This process revealed that Fintechs are known to offer "digital-only" banking services. For some time, Fintechs have been advancing (leading) digital banking services, and shaking "up the world of payments and investments." Since Fintechs have been leading the innovative world of digital-only banking services, we assumed that the percentage of various industrial sectors in Poland with the highest patronage to FinTechs would represent the industries that have had the highest uptake of digital business banking services in Poland. This assumption is reasonable because of our definition of digital business banking services. Note that, digital business banking services are defined as banking services offered to businesses by digital-only banks/EMIs (they do not include traditional banks that may also offer some digital services).

We have assumed that there are little insights into companies that have had the highest uptake of services from Electronic Money Institutions (EMIs) in Poland. This is because the battle of Fintech just ended, while the struggle of TechFin (which deal with EMIs) has only commenced.


Part
17
of twenty-three
Part
17

FinTech Companies: Sweden

Research successfully identified ten Sweden-based FinTech companies that operate in Sweden and received series A, B, C, and/or D funding during the years of 2018 and 2019. Anyfin, Dreams, Minna Technologies, Tink, and TransferGalaxy, are some of those identified by research.

ANYFIN

OFFICIAL WEBSITE

WHAT THEY DO


FUNDING


BEHAVIOSEC

OFFICIAL WEBSITE

WHAT THEY DO


FUNDING



BILLOGRAM

OFFICIAL WEBSITE

WHAT THEY DO

  • Billogram is an innovative tool designed to assist businesses and enterprises in making payments, invoicing, and communicating with their customers a seamless process. This source also gives support.

FUNDING



DREAMS

OFFICIAL WEBSITE

WHAT THEY DO

  • The purpose of this method of saving and investing effectively is to help users maintain a healthy dose of behavior by providing them with the resources needed to keep their emotions in balance with their rationality.

FUNDING


HEDVIG

OFFICIAL WEBSITE

WHAT THEY DO

  • Hedvig is a startup insurance company that offers its services strictly through the use of its app. Using automation and machine learning, Hedvig provides its customers with all the tools necessary to purchase home insurance, pay premiums, report an accident, file a claim, and receive cash compensation in a matter of minutes via their app.
  • Hedvig is unique from typical insurance companies, not only in the fact that they rely entirely on a chatbot and application to provide quality customer service and to communicate with their customers, but they are also the only insurance company in the world who takes any remaining, left-over, money from claims, and donates it to the customer's charity of choice.

FUNDING



MINNA TECHNOLOGIES

OFFICIAL WEBSITE

WHAT THEY DO

  • To achieve this goal, Minna Technologies has equipped their “Mina Platform”, with four key services necessary in ensuring the management of subscriptions services remains effortless for consumer use.

FUNDING


MITIGRAM

OFFICIAL WEBSITE

WHAT THEY DO


FUNDING



P.F.C.

OFFICIAL WEBSITE

WHAT THEY DO

  • P.F.C. offers its services through an application paired with the use of a contactless MasterCard, provided for free, whose main goal is to help customers keep track of their money and gain insights into how they are spending their money.

FUNDING



TINK

OFFICIAL WEBSITE

WHAT THEY DO

  • Tink is a platform designed to provide banks and financial institutions with innovative plug and play technology that can be tailored to meet the needs of their customers.
  • In addition, Tink also provides its users with insights from Europe's top bankers.

FUNDING



TRANSFERGALAXY

OFFICIAL WEBSITE

WHAT THEY DO

  • TransferGalaxy offers services to individuals in need of a secure way to send money across the globe.

FUNDING


Research Strategy:

Research began by seeking out any precompiled lists that might exist and contain information on Sweden-based FinTech companies that also operate in Sweden and had received funding in the years of 2018 and 2019. Research was able to successfully locate an article, published by Tracxn, containing a list of FinTech startups located in Sweden that have recently received series A, B, C, and/or D funding. Upon further analysis of this article, the total number of FinTech companies operating in Sweden was discovered, along with a link leading to a complete list of FinTech companies operating in Sweden. Along with the names of these companies being included in this list, was information on any funding the company had received in current and past years. To view the details of these companies, it is required that an account first be created. Screenshots of the company profile belonging to each of the ten FinTech companies identified have been included in the attached Google Document.

Part
18
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Part
18

FinTech Companies: Poland

Ten fintech companies that operate in Poland and received series A, B, C or D funding in 2018 or 2019 are Creamfinance, Ipos, AioCare, Shoplo, Brand24, CallPage, Busfor, Packhelp, SALESmanago, and Tuatara Capital. Complete details about each company are listed below.

1. CREAMFINANCE

  • Funding Received/Year: In 2019, the company received $30 million in series C funding.
  • Description: Creamfinance is one of the reputable consumer loan startups that offers its clients multiple credit loans across international markets. The company accesses applications through analyzing credit intelligence and applicant’s online data from both traditional sources and online platforms.
  • Website: https://www.creamfinance.com

2. AIOCARE

  • Funding Received/Year: This project is funded by the Joint Polish Investment Fund and received $1.1 million in series A funding on February 3, 2018.
  • Description: AioCare is a portable spirometer that lets patients monitor their respiratory functions. This Polish startup produces the personal system that not only monitors but also treats pulmonary ailments.
  • Website: https://aiocare.com/patient

3. IPOS

  • Funding Received/Year: On March 22, 2019, the company reported having raised €360k in series A funding from the president of sCard as well as the founder of Inteligo and former head of PZU.
  • Description: Founded in 2016, iPOS is geared towards simplifying daily routines of merchants through its duo cash terminals. These terminals consist of basic functionalities of payment terminals as well as tracking and offering remote store managing solutions.
  • Website: http://ipos.pl/

4. SHOPLO

  • Funding Received/Year: The company received series A funding in the amount of €730k in February 2019.
  • Description: Founded in 2011, in Warsaw, Shoplo is an established eCommerce platform which helps small scale businesses sell throughout the globe. The company was estimated to be worth ~$4 million in 2017. The startup ownership is said to be, accelerator, subsidiary, and venture capital.
  • Website: https://www.shoplo.com/

5. BRAND24

  • Funding Received/Year: Its latest Series B funding was held on May 6, 2018, raising PLN 1.5 million.
  • Description: Brand24 is a reputation monitoring service that allows customers to track online mentions, hashtags, etc. This company allows instant access to social media mentions that its consumers' businesses depend on.
  • Website: https://brand24.com/

6. CALLPAGE

  • Funding Received/Year: Callpage's last funding round was for series A funding on July 31, 2019; the company raised $4.5 million.
  • Description: Founded in Kraków, this startup assists commercial sites in converting views into sales calls. They accomplish this through an instant callback to real phone numbers.
  • Website: https://www.callpage.io/

7. BUSFOR

  • Funding Received/Year: Busfor received series C funding on May 15, 2019, raising $4.5 million.
  • Description: The company is a startup that operates in the bus transport industry. Currently, it manages more than 300 buses in its inventory and works with more than 500 travel agents. The firm was initially called Gillbus.
  • Website: https://busfor.com/

8. PACKHELP

  • Funding Received/Year: Its series A funding round occurred on March 18, 2019, raising $10 million.
  • Description: Packhelp is a packaging custom solution company for both online and offline firms. The company’s packages include products, eco-friendly mailers, and shipping packages.
  • Website: https://packhelp.com/

9. FinAi 

  • Funding Received/Year: Received series A funding on Feb 8, 2018, of $3.4 million.
  • Description: FinAi is a fintech company that uses big data and innovative technologies while creating an outstanding user experience. Founded in Nov 2016, it supports its customers in making "smarter, easier, faster and more convenient financial decisions.
  • Website: https://www.finai.com/en/

10. TUATARA CAPITAL

  • Funding Received/Year: Its latest funding was series B funding held on May 16, 2019, raising $206.8 million.
  • Description: Tuatara Capital offers businesses user analytics for conversion rate optimization. Its portfolio includes big data real-time analysis to clients.
  • Website: https://tuataracapital.com
Part
19
of twenty-three
Part
19

Registering a New Company: Sweden

For registering a business in Sweden, there are 3 procedures and they take 7 days to complete. Of the three procedures, the time-consuming one is registering with the company registry, and it is mandatory that after receiving the company registry application, a company is registered in five days. Below is the deep overview of the topic.

Starting a new business in Sweden : Overview

General

  • Statistics Sweden is an exhaustive database on Sweden and its demographics and can be useful to new entrepreneurs.
  • There are trade organizations whose websites can help a new entrepreneur collect information on each industry sector before starting a business. Such organization includes The Swedish Hotel and Restaurant Association, The Swedish Trade Federation, The Swedish Construction Federation, The Swedish IT and Telecom Industries, and Lantmännen, a national organization that covers agriculture and farmland resources.
  • The Swedish Jobs and Society Foundation provides advice to new businesses.
  • Verksamt website is a website run by three Swedish government authorities, the Companies Registration Office, the Tax Agency and the Agency for Economic and Regional Growth, to help new businesses find advisors in their respective regions.
  • Linkedin and Facebook are the most useful social media in Sweden while doing business.
  • Almi Företagspartner (Almi) is a state-owned company that helps businesses with capital and advice, but their interest rates are higher than banks.

How long the government registration process typically takes

  • For registering a business in Sweden, there are 3 procedures involved and the average time it takes to complete these procedures is 7 days.
  • For registering a business in Sweden, the paid-in minimum capital requirement is SEK 50,000.
  • The first procedure for registration is to "obtain a written statement from a Swedish bank certifying that the total cash amount to be paid for shares has been deposited in an account". This procedure takes 1 day.
  • The second procedure involved is to "submit the application to the Swedish Companies Registration Office (Bolagsverket) and obtain the registration certificate". This procedure takes 5 days.
  • The third procedure involved is to "register with the Swedish Tax Agency (Skatteverket)". This procedure takes 1 day.
  • Construction permits have 8 procedures, and the time taken to complete them are 117 days.

Challenges associated with the government registration process

  • There are 3 procedures involved in getting an electricity connection for a business, and it takes 52 days to complete all the procedures.

How long it takes to setting up business banking accounts

  • After obtaining the personal identity number (PIN), it takes only a single day to open a bank account in Sweden.
  • Challenges associated with setting up business banking accounts

  • It is better to start with smaller deposit amounts while opening a bank account, and if the deposit amount is huge, it takes more time.
  • Depositing a cheque in Sweden requires a huge fee and it will take several days to get cleared.
  • For opening a Swedish bank account, one should normally have stayed a minimum of 12 months in Sweden and also have a Swedish personal identification number.
  • Different bank branches require different documentation from an international customer.
  • Any barriers in terms of setting up an account online

  • EU/EEA citizens will have to go in person to open the account.
  • Whether Sweden is generally considered challenging for those setting up a business, as compared to other regions

    • Sweden is a high-tax country, and in this country, employees are entitled to generous social benefits and vacation time.
    • The Employment Protection Act (Lagen om Anställningsskydd, shortened as LAS) of Sweden mandates that employment contracts are for an indefinite time period unless it is otherwise explicitly stated in the contract, and the new entrepreneur should pay attention to this when drafting the contract.
    • Swedish employment law has many provisions for parental leave, holiday, and pension entitlements.
    • As per World Bank's annual ratings, Sweden is ranked 12 among 190 world economies in the ease of doing business.
    • The business sentiment index in Sweden has been the lowest since July 2013. In July 2019, it was at 97.4.
    • Corruption index of Sweden is 85 (the scale is 0-100, and the higher the index, the lower the prevalence of corruption) and corruption rank was 3 in July 2019.

    Is the government/culture considered friendly to new businesses?

    Are there significant challenges?

    • In Sweden, it is difficult to recruit a talented workforce from abroad because income taxes for the middle class are very high compared to those in other countries.
    • In Sweden, if one does not speak good Swedish, there could be difficulties in doing or starting a business, which includes difficult to understand how things work.

    Whether there are any differences in the process of setting up a brick-and-mortar business vs. an online business

  • The online procedures for registering a business in Sweden takes a half a day's time.
  • Additional Useful Information

    • According to Relocate To Sweden website, a website that provides information on migration to Sweden, a residence permit card is processed in Sweden in about 3 weeks.
    • Any business in Sweden is identified by a personal identity number (personnummer) which is provided to the entrepreneur by the Swedish Tax Agency (Skatteverket).
    • Th F-skatt application forms are available only in the Swedish language, and to get them filled in correctly, a non-Swedish speaking person will need the help of an accountant and/or make a personal appointment with the Tax Agency for guidance.
    • For those who know Swedish, for F-Skatt registration, the Swedish Tax Agency offers free information meetings in the Swedish language, providing step-by-step instruction.
    • The residence requirements for those moving to Sweden to start a company for Nordic citizens (Denmark, Finland, Norway, and Iceland), they do not need to register with the Swedish Migration Agency (Migrationsverket) or apply for a residence permit.
    • Citizens of the European Union (EU) or European Economic Area (EEA) can also reside in Sweden without registering with the Swedish Migration Agency, they can just apply for a personal identity number (PIN).
    • A non-Swiss citizen who requires a staying for more than three months needs to have a residence permit.
    • Those who are from outside of the EU/EEA/Switzerland and want to start a business in Sweden will have to apply for the residence permit before they come to Sweden.
    • A temporary resident in Sweden can apply for a co-ordination number, which will replace the personal identity number, to enable him/her to apply for F tax registration.
    Part
    20
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    Part
    20

    Registering a New Company: Poland

    The process of starting up a new business in Poland is manageable in that the steps to be taken are quite clear, and the requirements are also given.

    THE PROCESS OF STARTING A NEW BUSINESS IN POLAND

    • Starting a business is relatively easy as one can register at the appropriate town or community administrative office.
    • The registration process is initiated by an application for entry into the register of trade, which usually costs about 100 PLN.
    • The applicant would need to choose at least one category from the classification of activity.
    • After receiving written confirmation of a trade registration, the applicant would need to apply for a REGON number from the National Statistics Agency. The REGON is used on several other forms so the applicant will be blocked without it. The applicant will then have to register at the ZUS (Social Insurance Institution) and apply for a tax number (NIP) at the tax office.
    • It is possible to get a subsidy for setting up a business. This will require addressing the department of business development. European Union (EU) citizens will need to find out the available EU-programs because the programs and subsidies offered are prone to change.
    • After going through this process, the business is ready for kickoff.
    • Note that, in general, all documents have to be validated through signature and a company stamp.

    LENGTH OF THE GOVERNMENT REGISTRATION AND ASSOCIATED CHALLENGES

    • The process of starting a business in Poland can be long, taking about 37 days to complete the various procedures.
    • In Poland, EU citizens or those within the European Economic Area (EEA) do not need a work permit to work, but people from outside these areas require a work permit as well as the appropriate visa.

    LENGTH OF TIME IT TAKES TO SET UP BUSINESS BANKING ACCOUNTS AND ASSOCIATED CHALLENGES

    • The process can take between one hour to one whole week.
    • A bank account has to be opened in person in Poland, and it requires a personal visit to the bank branch by a representative of the company. It is not possible to open a bank account through an attorney in Poland in any Polish bank.
    • Polish Banks can only examine foreign documents that are translated into the Polish language by a sworn translator.

    IS POLAND GENERALLY CONSIDERED CHALLENGING FOR THOSE SETTING UP A BUSINESS?

    • Poland offers a desirable market for foreign investments. The country offers many business opportunities and a suitable environment for opening a new business.
    • While it is desirable for opening new businesses in many industries, it is also desirable for starting a small business.
    Part
    21
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    Part
    21

    English Usage: Sweden and Poland

    The population of Swedish people that speaks English is 5,430,317. The population of Polish people that speaks English is 7,546,680.

    English as a first or second language in Sweden or Poland

    • From statistics of people who speak Swedish and English in Sweden, it was reported that Swedish is the first and primary language with 92.72% of people speaking it.
    • While English has a 53.97% usage in Sweden.
    • From statistics of people who speak Polish and English in Poland, it was reported that Polish is the primary language with 95.15% of people speaking it.
    • While English has only a 19.85% usage in Poland.
    • The population of Sweden is 10,061,733 million as of Friday, August 16, 2019. This statistic is based on the latest United Nations estimates.
    • The population of Poland is 38,018,544 million as of Friday, August 16, 2019. These statistics is based on the latest United Nations estimates.

    English used for businesses purposes in Poland and Sweden

    • The use of spoken English is on the rise, especially with the younger generation in Poland.
    • The country is a “strong, dynamic economy and a gateway to emerging markets of Eastern Europe,” and there are over “300 flights a week between the UK and Poland.”
    • The CEE region which Poland is a member country “has widespread use of English as the business language.”
    • The Swedish business culture can be different when compared to other countries, but the use of English is still prevalent in Swedish businesses. However, it is always advisable to learn as much Swedish when interacting with people within the country.
    • Business meetings can still be held with the use English language due to the exemplary implementation of English in most of the country’s educational levels.

    English in Polish and Swedish Media

    Research Strategy

    To find the statistics of the use of the English language in Sweden and Poland, we utilized various statistical database sites. We found a statistical website that discussed the statistics of Swedish and Polish people that speak English. We then decided to look for the population of both countries to approximate the number of people that speak English. The calculations can be found below.

    Additionally, we also found surveys that studied the prevalence of the use of English words in magazines and shows in Poland and Sweden. We used this source as a reference for the usage of the English language in the media of both Poland and Sweden.

    Calculations

    • The Population of Sweden that speaks English=10,061,733*53.97%=5,430,317 Swedish people Speak English.
    • The Population of Poland that speaks English=38,018,544*19.85%=7,546,680 Polish people speak English.
    Part
    22
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    Part
    22

    FinTech Climate: Sweden

    The climate for FinTech businesses in Sweden is flourishing as this country has had a stable financial market for years. Below is an overview of the collected insights.

    FINTECH BUSINESS ENVIRONMENT IN SWEDEN

    • The FinTech business is thriving as the high trust in this country’s financial system and its continuously stable financial market, have created "a unique environment in which consumers welcome new FinTech solutions".
    • The Swedish market seems to be following trends in the global market, which has been growing over the last few years with the adoption of newer technologies and acceptance across newer markets, and 2017 was no different. The year saw the space garner $31 billion in funding globally, aggregating to a total global investment of $122 billion over the last three years.
    • Sweden has been attracting nearly two-thirds of FinTech investments within the Nordic region.
    • Generally, "The World Bank’s Doing Business 2018 report" ranks Sweden the #10 globally on the ease of conducting business. It also estimates the time to start a business within Sweden at seven days.
    • In 2018, 188 FinTech companies were established in the Stockholm greater area.
    • With a growing investor interest in the potential of technologies such as Artificial Intelligence (AI), Blockchain, and the Internet of Things (IoT), expected to impact the financial services sector, the FinTech space is dominating the tech sector globally. Sweden saw the space attract the largest portion within tech investments during 2017.
    • The last quarter of 2017 saw BIMA (Insurtech) and iZettle (Payments / transactions) rank amongst the top 10 FinTech funding deals within Europe. The success of the Swedish FinTech space reflects in the fact that the country has consistently attracted nearly two-thirds of the Nordic FinTech investments consistently over the last two years.

    SWEDEN'S KLARNA BECOMES BIGGEST FINTECH FIRM IN EUROPE

    FACTORS DRIVING THE GROWTH OF FINTECH IN SWEDEN

    • Research and development-Sweden spends 3.26% of its Gross Domestic Product (GDP) on research and development activities, compared to 2.97% in Switzerland, 2.87% in Germany, and 1% in the United Kingdom (UK).
    • The 2018 Bloomberg Innovation Index underlines Sweden’s dominance in innovation, ranking the country in 2nd place globally.
    • Being an innovation hotbed, the country offers a vibrant startup scene. Stockholm is ranked #3 amongst Europe’s ten best cities for startups with 144 companies included with the 5000 Inc. Europe.
    • In 2017, Swedish FinTech companies raised $358 million in 59 rounds of investment.

    MARKET SUB-CATEGORIES

    Payment and lending

    Insurtech

    • A highly regulated sector, insurance has seen the adoption of tech at a comparatively slower pace. However, this is changing as 2017 "saw a record level of VC investment" and deal volume with $2.1 billion across 247 deals globally. In fact, one of the biggest investments in the fourth quarter was into local bred startup BIMA, offering micro-insurance via mobile phone technology.

    Capital

    • With approximately 99% of enterprises in Sweden being Small and mid-size enterprises (SME’s), crowd funding has been lapped up in recent years. In Tessin and FundedByMe, Sweden boasts of the region’s top crowdfunding platforms. The Swedish government has expressed an intent to encourage crowdfunding as a credible way for SME’s to raise money and conduct business.

    Cryptocurrencies

    • From Malmö in the South, where payment solution company Plingpay is using bitcoin’s blockchain as a bridge between traditional currencies, to Boden in the far North, where several crypto mining and blockchain companies have established data centers, Sweden is solidifying its position as a hotspot for cryptocurrency experimentation and innovation.

    Wealth Management

    • Projected to be amongst the fastest growing segments, the process of traditional wealth management is increasingly facing the threat of tech enabled wealth management. The robo-advisory segment globally is expected lead growth during the coming years. Recently, Swedish FinTech startup called Qapital raised $30 million in funding to move into the robo advisory space, counting investors Swedbank Robur, Norron, SEB Stiftelsen, Athanase, and Northzone.

    Trading & Exchange

    • With exchanges across the globe exploring avenues to adopt blockchain’s native capabilities, this relatively unpopulated segment is expected to see an increased level of interest, domestically and globally. The latter part of 2017 saw SEB and Nasdaq, Inc. announce a joint project to test a developed prototype for a mutual fund trading platform based on blockchain technology.

    PROACTIVE AND FRIENDLY REGULATIONS

    • Sweden’s success across financial innovation in the past has been aided by proactive measures undertaken by the regulator in facilitating growth and innovation.
    • Sweden has amongst the lowest corporate taxes at 22% and there is no local taxes for companies.

    LEVEL OF REGULATION FOR FINTCH BUSINESSES IN SWEDEN

    SWEDISH FINTECH STANDS TO BENEFIT FROM BREXIT

    Part
    23
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    Part
    23

    FinTech Climate: Poland

    Poland is the biggest FinTech market in Central and Eastern Europe, with an estimated value of €856 million. According to research by Accenture, there are around 100 companies innovating the Polish FinTech

    Climate for FinTech Businesses in Poland

    • With an estimated value of €856 million. Poland is the biggest FinTech market in Central and Eastern Europe.
    • There are approximately 100 companies innovating the Polish FinTech, according to research by Accenture.
    • Warsaw, home to nearly 45% of startups in the country is also a hub of financial technology in the region. The Global Financial Centres Index (GFCI) ranks capital of Poland as the 12th most competitive major Financial Centre in CEE, and 45th in the world.
    • The ’Welcoming Innovation Revolution’ report by GE Global Innovation Barometer 2016 shows clearly that 83% of Polish companies are highly interested in new technologies. The 2018 edition of the report proves that the innovations in Poland are driven mainly by SME’s.
    • Poland has one of the most technologically advanced banking sectors in the world.
    • Polish banks are driving innovation with constant investment in improvements and novelties in various areas such as modern sales channels (including online channels), remote client service technologies and digitalisation of traditional branches or new payment methods.
    • About 15.5 million Poles use banking services online at least once a month, according to Polish Bank Association. The use of mobile banking technologies is also widely spread.

    Attractive Outsourcing Market

    • Poland is also one of the most attractive markets in terms of outsourcing. Currently, there are 524 foreign companies with Business Process Outsourcing (BPO), Shared Services Centres (SSC) and Research and Development hubs (R&D) employing over 244.000 people (according to ABSL). One of the crucial elements of the Polish BPO industry is outsourcing for global financial institutions.
    • Names like Credit Suisse, Citi and UBS have made Poland their home for all outsourcing and customer support. It is speculated that Brexit will not only increase the workload for these ‘back-offices’ in Poland and the CEE region but also accelerate the relocation of middle-office services.
    • With the cost of operating a business of any size in England continuously increasing, many more FinTech entrepreneurs will be looking to scale their business elsewhere. Poland is properly poised to be the major European FinTech hub attracting foreign entrepreneurs to come and run their business there. One of them is Rene Skaflestad, CEO of the Norwegian FinTech startup Liber Finance Group, who chose Warsaw as their headquarters.

    FinTech Trends 2018-2020

    • The FinTech industry is undergoing both vertical and horizontal growth, rise of B2B services and closer cooperation with financial institutions. These are three strongest trends, which might impact CEE in the next 24 months.
    • An electronic survey conducted by FinTech Poland Foundation and Obserwatorium.biz showed that major domains where Polish FinTech companies operate are financial platforms and electronic payments.
    • A report by Deloitte indicates that Poland does not mean much on the FinTech map of the world. According to the report, "Warsaw — the only Polish city that matters as a FinTech hub — is not included among the top cities in the category of the so-called new hubs, i.e. those located in developing markets."
    • While Polish FinTechs (there are more than 100 such companies) are worth about €900 million (according to Deloitte’s estimates from a few quarters ago), they are not popular with investors. In 2016, on the Polish FinTech market only a few acquisitions of negligible value transpired. During the same time, transactions with a value of US$62 million were concluded in Sweden.
    • Many FinTechs are targeting the piece of the financial market pie which is not regulated because the regulated sub-sector is dominated by banks.

    Major Fintech Business Lines in Poland

    • In the FinTech industry in Poland, financial platform occupy the lion share in terms of amount of businesses at 25%, followed by crowd funding and P2P lending at 13%, digital and mobile payments at 13%, data analytics/machine learning at 13%, personal finance management at 6%, and cryprocurrency at 13%.
    • The majority of services in the FinTech industry are intended to be used by other companies (B2B) or banks themselves. Only half of the FinTech ventures dedicate any of their services and/or products to consumers. This is not surprising, as 76% of Polish startups provide B2B services, according to the Startup Poland Foundation.
    • Polish FinTech companies focus mainly on a domestic market but simultaneously try to launch their product in foreign markets. The size of the local market is big enough to let FinTech ventures generate a significant income. On the other hand, it is too small to be meaningful on a global scale.

    Cooperation with Financial Institutions

    • The climate for FinTech in traditional financial institutions is positive and still improving. This is because of the maturity of the banking sector and their level of advancements.
    • Major banks disrupting the FinTech industry in Poland include Alior Bank, ING Bank, mBank, Pekao SA, PKO BP, BGŻBNP PARIBAS Bank and BZ WBK.

    Factors driving the growth of FinTech industry in Poland

    • Success in the FinTech sector is determined by several factors, and Poland fulfills all of them. These include geopolitical location (very good in Poland’s case), financial infrastructure (also very good), human resources (Poles are well educated and willing to work) and the ability to conduct research and to use outsourcing (there are over 450 outsourcing companies operating on the Polish market).
    • Poland also has a good regulatory environment for FinTech businesses as well as government goodwill towards FinTech businesses. Institutions like the Polish Development Fund are providing sensible help in the development of FinTechs.
    • One of the major factors affecting growth of FinTech businesses in Poland is lack of a coherent ecosystem, in which FinTechs could grow and fully develop.
    • Specialists indicate that in a certain sense this innovative banking sector inhibits the development of Polish FinTechs, as it constitutes excessively strong competition on the local market.

    Sources
    Sources

    From Part 03
    Quotes
    • "Europe has seen the first cohort of challenger banks (Atom Bank, Tandem Bank, Monzo, Starling Bank, Revolut, and N26) break out, collectively attracting $1B in funding and over 2.5M customers since 2014.""
    Quotes
    • "Lunar Way Business is everything you need for your business all in one place. You get an account, card, fixed pricing, and features to handle your finances. Everything so you can spend your time on what really matters - your business."
    • "We've made it simple and fast for you to handle your business's finances so you can focus on what you do best."
    • "Experience how simple banking should be. Whether you are a consultant, freelancer or entrepreneur."
    Quotes
    • "That's why we aim to create a 100% digital experience, avoiding small print sections and the use of words that nobody understands."
    Quotes
    • "N26 Business is the free bank account for freelancers and the self-employed. Earn 0.1% cashback on all purchases you make, 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 organise 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."
    From Part 04
    Quotes
    • "Poland is among the countries that can be called leaders in digital banking, according to research conducted by consulting firm Deloitte. In the research, entitled "EMEA Digital Banking Maturity 2018", 15 institutions were assessed in Poland. Deloitte's Daniel Majewski added that among the Polish banks deserving the title of digital leader are (in alphabetical order) ING, mBank and Bank Millenium. "
    Quotes
    • "In Poland, ING is an established financial brand. We provide a full range of products including asset based lending, custody and corporate advisory services, a network of product specialists and industry experts, and Client focus – single point of contact – tailored services. In addition, ING is one of the top arrangers of corporate bonds. "
    • "Our clients include over 40% of the largest Polish corporations. They benefit from an extensive corporate network and one of the best internet banking systems in the country."
    Quotes
    • "mBank has been a synonym for innovative banking solutions for years. We were the first fully Internet-based bank in Poland and today we set the direction of the mobile and on-line banking development. We are one of the strongest and fastest growing financial brands in Poland."
    • "The mBank Group offers companies a wide range of products and services to meet their financial needs. The mBank offer is complemented by leasing, factoring and a full range of brokerage services."
    • "mElements mission statement is to provide delightful digital shopping experience for customer and merchant. We help e-commerce segment sellers to measurably improve customer experience, funnel conversion and business partner loyalty through the use of API Banking solutions. "
    • "mAccelerator powered by mBank is a venture capital fund with over €50 million under management focusing mainly on seed and early-stage investments in startups with cutting edge technological solutions that can make a powerful impact in the digital economy, and we work hand in hand with founders who have what it takes to build a world-class company. We bring access to smart money providing entrepreneurs with expertise and insights in innovation, market intelligence, business development as well as marketing and brand-building. Working together we battle test technologies and business ideas to scale unique projects into formidable companies with clients across sectors and geographies including mBank."
    Quotes
    • "At the end of June 2019, mBank’s shares in the market of loans and deposits of enterprises reached 7.1% and 10.5%,respectively. In H1 2019, mBank’s small and medium-sized enterprises (SMEs -K3) segment acquired more than 2,000 new clients, which represents an increase by over 25% year on year. In the period under review, mBank launched a marketing campaign targeting the SMEs segment."
    • "The aim of the campaign entitled “You don’t grow out of good things” (“Z dobrych rzeczy się nie wyrasta”) was to promote the account dedicated to small and medium-sized enterprises, and at the same time, provided extra support to the Great Orchestra of Christmas Charity (WOŚP). All bank account and transfer fees paid from January to June 2019 by SMEs that joined the campaign were donated to the WOŚP Foundation."
    • "In H1 2019, mBank was a laureate of the Financing Bank of the Year award of the Polish Private Equity and Venture Capital Association (Polskie Stowarzyszenie Inwestorów Kapitałowych, PSIK) for its achievements on the Polish private equity/venture capital market. In the Financing Bank of the Year category mBank was also awarded the Investment Diamonds prize for the most professional bank supporting investment. "
    Quotes
    • "PKO Bank Polski is the largest bank in Poland, offering hundreds of financial products for varied groups of customers. The website has over over 15 000 pages and is visited by over 3,5 million users each month. We made contacting with the bank easier and simplified the logging to the transactional websites."
    • "The number of mobile users on the website rose by 65% and sales conversion rates were much improved. PKO Bank Polski was also awarded in 2017 as the most user-friendly bank in Poland for its website, mobile app, and its transactional system iPKO (which we also helped to design) by the highly regarded polish magazine Puls Biznesu, who audited digital touchpoints of all the banks in Poland. "
    Quotes
    • "Leader in e-government services; an undisputed leader in mobile banking in Poland with a 25% market share; The Heart Corporate Innovations award for the best digital transformation team."
    Quotes
    • "PKO Bank Polski’s IKO mobile banking application has been named as the world’s best for the second year in a row by the British industry magazine Retail Banker International."
    From Part 06
    Quotes
    • "While Android has far greater market share in less affluent countries like Poland, Google Pay took four months (12 times as long) to reach its first 25,000 users in Poland. And after more than 18 months of availability (after launching in mid-November 2016), Google Pay has still only reached 300,000 users."
    Quotes
    • "There is already strong competition among providers of mobile payment solutions in Poland. • BLIK is the only large scheme not device/OS specific. It is also the only scheme that has reached a significant scale of operations so far."
    Quotes
    • "The average transaction value per user in the Mobile POS Payments segment amounts to US$326.2 in 2019."
    Quotes
    • "You will be able to use Android Pay at more than 400 thousand retail locations throughout Poland that accept contactless payments. This includes your favourite shops like Carrefour and Rossmann, cafes like Costa Coffee and much more - take a look here for more places where you can use Android Pay."
    From Part 10
    Quotes
    • "Poles love digital banking. A study conducted by MasterCard shows that over 91% of Polish respondents make online payments at least once a month (the European average is 85%). "
    • "Moreover, Deloitte’s CEE Fintech report values the Polish fintech market at almost €860 million. Both of these stats put Poland in the leader’s seat in this part of Europe."
    Quotes
    • "Poland is among the countries that can be called leaders in digital banking, according to research conducted by consulting firm Deloitte and presented at a Tuesday press conference."
    • "Deloitte's Daniel Majewski added that among the Polish banks deserving the title of digital leader are (in alphabetical order) ING, mBank and Bank Millenium."
    Quotes
    • "In 2018, 44 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 57 percent."
    Quotes
    • "All major Polish banks offer online services, from balance-cheque functions to cash transfers and deposits."
    • "Popularity of online and mobile banking continues to grow, causing bank networks to shrink rapidly."
    Quotes
    • "As a result, about 15,5 million Poles uses banking services online at least once a month, according to Polish Bank Association. The use of mobile banking technologies is widely spread too."
    Quotes
    • "At the end of 2017, 35.5 million clients had access to online banking services, a 7% increase in comparison to the fourth quarter of 2016. "
    Quotes
    • "This means, that more than a third of the customers (38 per cent) using online banking access their banking services using a smartphone. "
    Quotes
    • "In Poland, as much as 60% of smartphone owners have already used mobile banking, which is the third highest in Europe."
    From Part 11
    From Part 12
    From Part 13
    From Part 15
    Quotes
    • "En ny rapport visar nu att den svenska banksektorn även ligger långt efter sina europeiska konkurrenter när det kommer till att erbjuda digitala tjänster"
    Quotes
    • "Sweden is among the world's leading countries in the diffusion and use of digital technology across industries."
    Quotes
    • "Financial technology (Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services. ​​​At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones. Fintech, the word, is a combination of "financial technology". "
    Quotes
    • "Klarna is now one of Europe’s largest banks and is providing payment solutions for 60 million consumers across 130,000 merchants in 14 countries. Klarna offers direct payments, pay after delivery options and instalment plans in a smooth one-click purchase experience that lets consumers pay when and how they prefer to."
    Quotes
    • "iZettle is an E-money Institution and is under the supervision of the Swedish Financial Supervisory Authority."
    From Part 16
    Quotes
    • "According to research by Accenture, there are around 100 companies innovating the Polish FinTech. Together, all major worldwide sectors are represented as electronic payments, loans, credits, financial platforms, cryptocurrencies, transactions, data analysis (credit scoring), machine learning and crowdfunding."
    • "An electronic survey conducted by Fintech Poland Foundation and Obserwatorium.biz showed that major domains where Polish FinTech companies operate are financial platforms and electronic payments. - Many others declare they operate in areas such as data analysis & machine learning, payment processing, crowdfunding & P2P."
    • "In the interviews conducted by the foundation, representatives of both banking and FinTech industries concluded that the prioritised specializations for the Polish FinTech industry should be payments processing and services concentrated around loan and credit brokers."
    • "Annual events like Wolves Summit, ImpactFintech, Fintech Congress, Cashless Congress, Digital Banking and Payments Summit bring startups, funds and corporations into the same space to cross paths and ideas - says Michal Sobczyk, External Relations Manager at ImpactCEE."
    • "Poland is the biggest FinTech market in Central and Eastern Europe, with an estimated value of €856 million. Warsaw, home to nearly 45% of startups in the country is also a hub of financial technology in the region. The Global Financial Centres Index (GFCI) ranks capital of Poland as the 12th most competitive major Financial Centre in CEE, and 45th in the world. "
    Quotes
    • "Fintech 2.0: Meet the brands democratising payments and investments The rise of digital banking and persistent fears post-financial crisis have opened the door for a host of new brands shaking up the world of payments and investments."
    • "Just as trust in traditional banking has broken down, the fintech revolution has revved up several gears as consumers embrace the chance to manage money at their fingertips."
    From Part 22
    Quotes
    • "With a growing investor interest in the potential of technologies such as Artificial Intelligence (AI), Blockchain, Internet of Things (IoT) expected to impact the financial services sector, the FinTech space is dominating the tech sector globally. Sweden saw the space attract the largest portion within tech investments during 2017. "
    Quotes
    • "Klarna, the Swedish payments company with a “shop now, pay later” model, has become the largest private fintech firm in Europe after a fresh round of investor funding increased its value to $5.5bn (£4.5bn)."
    From Part 23
    Quotes
    • "Poland is the biggest FinTech market in Central and Eastern Europe, with an estimated value of €856 million."
    Quotes
    • "For the time being, Poland doesn’t mean much on the fintech map of the world. According to a report prepared by Deloitte, Warsaw — the only Polish city that matters as a fintech hub — is not included among the top cities in the category of the so-called new hubs, i.e. those located in developing markets. "