# Norway Digital Banking

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More than 16,000 new businesses have been opened in Norway as of Q2 2019. More details about the country's total number of businesses, employee breakdowns, starts per year, and turnover are presented below.

• There are 421,225 businesses in Norway as of 2018.
• 16,075 new businesses have been established in Norway as of the second quarter of 2019.

• As of 2018, 280,216 businesses were owned by sole traders (have no employees).
• As of 2018, 83,203 businesses in Norway have between 1-4 employees.
• As of 2018, 27,023 businesses in Norway has between 5-9 employees.
• In 2018, 110,226 (83,203 + 27,023) businesses in Norway had less than ten employees.
• 722 businesses in Norway have 250 or more employees.
• Approximately 29,340 businesses have between 10 to 249 employees (estimated).
• Businesses with no employee - 280,216
• Businesses with less than ten employees - 110,226
• Businesses with 250 or more employees - 722
• Businesses with between 10 to 249 employees = 421,225 - 280,216 + 110,226 + 722 = 29,340

• 16,075 new businesses have been established in Norway as of second quarter of 2019, of which 6,054 were privately held and 9,658 are sole proprietorship.
• 61,533 and 58,186 new businesses were established in Norway in 2018 and 2017, respectively.
• Over 60,000 new businesses were established in 2016.

• 55.66% of the total businesses in Norway have an annual turnover of less than €50 million (estimated)
• 179,475 businesses have less than €0.90 million (\$1 million)
• 39,700 businesses have between €0.9 million to €4.5 million (\$1 million to \$5 million)
• 7,591 businesses have between €4.5 million to €9 million (\$5 million to \$10 million)
• 7,698 businesses have €9 million to €45 million (\$10 million to \$50 million)
• TOTAL = 179,475 + 39,700 + 7,591 + 7,698 = 234,464
• Proportion of businesses with less than €50 million = 234,464/421,225*100 = 55.66%

### RESEARCH STRATEGY

After a thorough and wide-reaching search through the Norwegian National Statistics and OCED databases as well as media sources (e.g., Forbes) and business directories (e.g., Hoover and Crunchbase), your research team could not find the requested information preexisting except for the number of new businesses started annually, number of sole traders, and the number of businesses with more than 250 employees. We were, however, able to find data points used in triangulating the results to other parts of the requested information as shown above.
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## Norway: Challenger Digital Banks

The three top challenger digital banks that offer banking services to businesses in Norway are Aprila Bank, N26, and Revolut.

### 1. Name: Aprila Bank

• Website: https://www.aprila.no
• Description: "A highly automated niche bank focusing on intuitive on-the-spot financing solutions for small and medium-sized enterprises through employing modern technology, data-driven credit risk management and an innovative distribution model."
• "Aprila's products and services integrate the customer's accounting system for tailoring with real-time credit scoring.
• It's ambition is to remove financial stumbling blocks that prevent healthy businesses from succeeding."
• The company was founded in 2016 in Norway.

### 3. Revolut

• Description: "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 companies' website, Revolut is operational in Norway.
• Revolut is registered in England and Wales.

### Research Strategy:

We started the research with directly searching for any industry reports and market studies on the Norway challenger banks for businesses market. The idea here was to find any report specific to Norway 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 marketnand global market and none of the reports provided any specific challenger banks from Norway. Further, we came across a list published by Pagan Research which mentioned that Aprila is a challenger bank based in Norway that provides its services to businesses. However, the description provided in the list did not provide any information on the company’s market penetration or leadership position.

Further, we started to search for pre-compiled lists of all the challenger banks in Norway. 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 top in Norway.
We came across numerous lists published by Corporate Finance Institute and Wall Street Mojo that only provided information on top banks in Norway. However, both the lists only mentioned traditional banks and none of the lists provided any names of challenger banks in Norway.
We then started searching for leading challenger banks in Europe. The idea here was to find any names of challenger banks based in Norway. We came across numerous lists published by VentureRadar, Mobile only Banks and Fintech Futures. However, none of the lists provided any names of companies headquartered in Norway apart from Aprila which was identified earlier. Most of the challenger banks found using this strategy primarily focused only on consumer banking such as Sbanken, Ferratum Money and Instabank.
We also searched through various media articles and press releases to find any information related to challenger banks for businesses in Norway. We came across various articles published by Lifein Norway, Computer Weekly and Hernaes however, these articles only provided similar information which was found already and none of the articles provided any information on top challenger banks for businesses in Norway.
We then started to search for information on Aprila’s competitors published by leading company databases such as Bloomberg, Hoovers, Crunchbase, CB Insights and Manta. However, most of the profiles found such as CBInsights and ZoomInfo only provided names of Aprila’s European competitors and none of the companies were based in Norway.

As a last resort, we started to search through all the European companies to find any company that have established operations in Norway as well. After an exhaustive search through all the companies found earlier, we were able to find only two additional companies namely N26 and Revolut that provided services to business and are operational in Norway.
Thereby, using the above mentioned strategies, we were able to identify three companies in total namely Aprila, N26 and Revolut that provided services to businesses in Norway. However, due to unavailability of any existing market study and the companies being relatively new in Norway, no information could be found on the companies’ market penetration in Norway. For instance, Aprila was only founded in 2016 and N26 entered Norway market only in 2018.
Kindly note that since the RC mentions this for the summary for companies that “This may be directly quoted from the website, just be sure to quote/cite appropriately”, We have provided the description of companies as found on the company websites using appropriate quotation.

### WHAT INFORMATION WAS AVAILABLE

Names of three challenger banks providing services to businesses in Norway.

### WHAT INFORMATION WAS NOT AVAILABLE

Any companies apart from Aprila that are based in Norway. Any information on market penetration for the companies identified.

### WHY INFORMATION WHICH WAS NOT AVAILABLE PRE-COMPILED, COULDN'T BE TRIANGULATED?

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 Norway. It could also be possible that since most of the companies identified have entered the Norway market recently, limited information is available on their market penetration in Norway.
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Insufficient information exists to determine how widely used Google Pay is in Norway. Some relevant findings and the strategies employed in an attempt to triangulate an answer are included below.

• Google Pay was launched in Norway in October 2018.
• In Norway, payment via Google Pay can be made at all physical outlets that accept contactless payment as well as online outlets such as Google Play and YouTube Premium.
• Google Pay is supported by the following five banks in Norway: Nordea, Sparebanken Sør, Storebrand Bank, Revolut, and Monobank.
• Another bank, Sbanken Bank, announced they were in negotiations with Google and planned to launch Google Pay in the first quarter of 2019.
• Some competitors of Google Pay in Norway are Apple Pay, mCash, MobilePay, Paypal Mobile, and Vipps.
• Mobile wallet payments have reached a usage rate of 42% in Norway, which is higher than any other European nation.
• Cards dominate the payments landscape in Norway with 51.3% of the market and €5.6 billion in transactions.
• Seven percent of Norway's population use the payment app Vipps is used by 7%, and the app has a brand recognition of around 95%.

### RESEARCH STRATEGY

Ultimately, your research team found that information on Google Pay Statistics in Norway is not available. In an attempt to identify how widely used Google Pay is in Norway, we employed four research strategies.
For our first strategy, we examined digital payment reports in Norway. We looked for information from major firms like Deloitte and JP Morgan among others. We employed this strategy to see if any of these companies have conducted research on the digital payment market in Norway or have gathered statistics on the usage of mobile payments like Google Pay and others. We thought that these companies would have conducted research on such topics and may have published stats in their reports. However, this strategy did not work as these businesses had not published information on Google Pay usage. Instead, we did find information on the rise of mobile wallets in Norway and the growth of payment apps.
We then looked for information published by Google or its parent company, Alphabet, in annual reports, press releases, or executive statements. Our idea behind this strategy was that the company may have released reports on the success of the payment system in Norway as companies often release information in the annual reports or press releases. However, this strategy did not work as no information had been published for Norway specifically. Instead, we found information about the app, its benefits, and general statistics on its performance.
My second strategy was to use tools that provide app analysis like SensorTower, Apptrace, Datanyze, or Apptopia. Our goal was to use these tools to find data on the number of users, payments made, and other relevant statistics, as these tools provide analysis of various apps. These tools provide intelligence insights with vital data-driven competitive insights on the global app economy and may have published information for Norway. Unfortunately, this strategy did not work because no information was available specifically for Norway, although some tools like SensorTower had published global information.
Our third strategy was to search for information in financial publications and media publications in Norway focused on the payment systems in the country. We aimed to see if any news agencies had published reports about the payment systems in Norway with user stats. We thought this strategy may work as media companies publish information about different industries along with statistics from their own or third party research institutions. We looked for information on sites like Norway Post, Norway Today, thelocal.no, and dinside.no. Ultimately, this strategy did not work as no quantitative information was available. Instead, we found information about when Google Pay was introduced in Norway and other details included in the key findings above.
Our fourth strategy was to look for paywalled reports on the mobile wallet payment systems in Norway on market research sites like Research and Markets and IBISWorld, among others. With this strategy, we were able to find information on Norway's mobile wallet payment systems, which had information for Google Pay. Our goal was to provide any paywalled reports which would have been helpful to the client.
Ultimately the information could not be triangulated because there are no reports, articles, or publications available that provide statistics on Google Pay usage in Norway. One reason for this lack could be that Google Pay was only introduced in October 2018 in Norway.

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## Apple Pay Statistics: Norway

Apple Pay is not as a popular in Norway as other mobile payment apps, but there are 45,268 Apple Pay users in the country, primarily aged 15 to 24, with a total of 1,026,561 transactions performed this year, which values at €46,709,954. Currently, only Nordea and Santander Bank offer Apple Pay in Norway, and there are very few stores accepting Apple Pay.

### OVERVIEW

• Norway is one of the first countries to modernize their payment system and ranks top in payment system efficiency on an international level.
• Apple Pay is relatively new in Norway and has not been seen as an active competitor for the already established mobile pay wallet options currently available in the country.
• Norway's own mobile payment options are accepted more widely in stores, for person-to-person transactions and other forms of mobile payments.

### INSIGHTS

• There are 45,268 Apple Pay users, primarily aged 15 to 24, in Norway. (Please see calculations below.)
• There are 1,026,561 Apple Pay transactions performed in Norway this year. (Please see calculations below.)
• This year, the total value of Apple Payments in Norway is €46,709,954. (Please see calculations below.)
• Currently, only Nordea and Santander Bank offer Apple Pay in Norway.
• There are very few stores accepting Apple Pay in Norway.

### RESEARCH STRATEGY

There are 5,282,223 people in Norway. Apple Pay is popular with consumers age 15 and older. The population percentage of people aged 16 to 24 is 13.1%, aged 25 to 69 is 57.7%, over the age of 70 is 10.4%, and over the age of 80 is 4.5%, so:
• 16 to 24 age group: 13.1% X 5,282,223 = 691,971 consumers
• 25 to 69 age group: 57.7% X 5,282,223 = 3,047,842 consumers
• Over 70: 10.4% X 5,282,223 = 549,351 consumers
• Over 80: 4.5% X 5,282,223 = 237,700 consumers
• Total: 691,971 + 3,047,842 + 549,351 + 237,700 = 4,526,864 potential Apple Pay market

Thus, the total population of the potential Apple Pay market in Norway is 4,526,864. Of this figure, Apple Pay only accounts for 1% of the mobile transaction data, so:
• 1% X 4,526,864 = 45,268 Apple Pay users in Norway
In 2017, there were 90 million mobile payments made. We were unable to find the exact CAGR of the number of mobile transactions specifically for Norway through credible sources and therefore expanded on the criteria and found the European CAGR of transactions to apply to this triangulation. This showed that mobile payments transactions were expected to increase by 6.8% in 2018 and 2019, so:
• 90,000,000 X (6.8% ÷ 100 + 1) ^2 = 102,656,160 mobile payments made in 2019

Of these payments made, Apple Pay accounted for 1% of them, so:
• 1% X 102,656,160 = 1,026,561

Therefore, there are 1,026,561 Apple Pay transactions made in Norway in 2019.

In 2017, the value of mobile payments in Norway as a whole was NOK 40 billion, and the average value of payment made was NOK 450. This increased at 8.1% CAGR for the years 2018 and 2019. We also converted NOK to EUR, so:
• NOK 40,000,000,000 X .1 = 3,997,220,000 euros
• 3,997,220,000 X (8.1% / 100 + 1) ^2 = 4,670,995,400 euros

Of this figure, Apple Pay accounts for 1%, so:
• 1% X 4,670,995,400 = €46,709,954

Thus, the value of Apple Payments in Norway this year is €46,709,954.
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## Digital Banking: Norway

Norway is a mature market for digital banking services. Norwegian consumers have positively embraced the use of digital banking to do transactions such as bill payments, updating account details and applying for new products. Majority of Norwegian consumers access digital banking via mobile by using smartphones through downloadable apps.

### OVERVIEW OF DIGITAL BANKING

• According to Finance Norway report, more and more people in Norway, are now using banking services online, consequently reducing the number of branches over the years.
• Norwegian households have embraced positively mobile payment solutions which are becoming increasingly popular in the country.
• Norwegian banks have indicated integrating digital banking in their systems has given them large productivity gains and reduced costs.
• According to Deloitte Report, Norway is a mature market for digital banking services. This has been made possible by the fact that Norway is ranked among 'Top 10' with the highest internet penetration.
• Norwegian customers have embraced positively digital banking and are avid users of online and mobile banking services to do transactions such as bill payments, updating account details and applying for new products.
• Nearly, 97% of Norwegian customers use digital channels thereby consolidating solid foot print for digital banking.
• Report from Deloitte indicate that branch density in Norway have greatly declined dropping from 11.7 branches in 2008 to 6.2 in 2016, in the era of digital banking services.
• Digital banking has offered Norwegian consumers better experiences saving them from the long tiresome waiting lines to get banking services.

### GROWTH

• Report from Econsultancy indicate as at 2014, Norway had a penetration rates of about 68% for internet usage and smartphones.
• A recent report from Fintech, indicate that Norway internet and smartphones penetration rate has steadily grown to almost 100% attributed to a robust digital infrastructure.
• Positive tastes and preferences on the part of consumers have encouraged customers to prefer digital channels over branches when applying for simple products, such as checking accounts, savings accounts, debit cards, and credit cards.

### NUMBER OF ACTIVE USERS

• According To DNB bank, which is the largest bank in Norway, it boasts having 1.3 million active users in online internet banking.

### SMALL BUSINESSES IN DIGITAL BANKING

• According to report from Finextra, digital banking revolution is SMEs has seen tremendous growth. For instance, 9 out of 10 SME customer relationships are established digitally, thus SME businesses have used the internet bank and the mobile bank more than 12.7 million times in 2016.

### ACCESS OF DIGITAL BANKING

• According to Econsultancy, Norwegian consumers have more access to digital banking through mobile and they are slowly abandoning the internet banking.
• Mobile and tablet now represents 60% of all digital login traffic.
• 43% of all digital customers use mobile and or tablet banking.
• Split across device in mobile banking: 50% iPhone users, 42% Android users, 1.2% Windows and7.8% iPad users can access.
• Norwegian consumers can access digital banking via downloadable mobile apps such as Mobile Solutions, The MobilePay (Danske Bank), Vipps (DNB) and mCASH (Sparebank 1).
• Some consumers who do not have smartphones can access digital banking via SMS services.
• Norwegian consumers access digital banking to facilitate mobile payments in different settings such paying for goods in stores, pay parking fees, as well as to make or schedule domestic and international payments.

### YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY

We began our research by looking for a general overview of digital banking in Norway by accessing business journals, press releases, media articles and credible consumer research reports from Deloitte, Econsultancy, FinExtra and other related business insights in attempt to find solid information that would address this request. From these sources, we were also able to determine positive indicators that encourage the growth of digital banking in Norway. To determine the trend in growth of digital banking in Norway, we accessed older information from Econsultancy which stated as at 2014 Norway had a penetration rates of about 68% for internet usage and smartphones but as at 2018, while Fintech indicated this value had increased to about 100% posting a positive increment in the use of digital banking.
Then, we looked for the number of businesses and active users in digital banking from other credible resources such as Fintech and Advaratings, but no statistics that gave these indicators appeared; however, Advaratings provided us with top businesses that had incorporated digital banking such as the DNB bank with approximate 1.3 million active users of online internet banking. We concluded our research by finding the ways in which Norwegian consumers access digital banking.

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## Digital Banking Trends: Norway

Research suggests that the Norwegian banking system is in a challenging position. The banks are considered late adopters of customer-centric technology and are consequently susceptible to competitors from the rest of the EU. The trends we could identify in the system, as a whole, show banks scrambling to catch up.

### OVERVIEW OF THE EU BANKING SYSTEM

• The European Commission is committed to integrating the Financial services in Europe by standardizing banking regulations across Europe. This change is pushing Norwegian banks to make significant changes in how they do business and defining some trends in the banking industry in Norway.
• Published on June 2019, this detailed description of PSD2 — the Revised Payment Service Directive from the EU — is causing the banking industry's monopoly on account information and financial services to disappear. This new regulation allows any interested company to move into the previously sacrosanct territory of the banks.

### BANKING IN NORWAY

• Banks in Norway are the victims of their success. Because they have been more profitable than other European banks, they have been operating with a sense of complacency and no sense of urgency to transform their operations digitally. They, therefore, find themselves as late adopters to the digital transformation going on in banking.
• Banks in Norway are therefore behind the curve in addressing new consumer demands. They recognize that digital disruptors are capable of attacking and siphoning off business at any place in the banking value change. In a survey, 78% of the Nordic banks stated they are "concerned or very concerned by the threat". Even with that overwhelming concern fewer than "40 % have a clear strategy and road map in place."
• One of the most critical decisions Norwegian banks need to make is their goal. Do they wish to become a utility bank with relatively static financial services and lower fees, or do they want to become an everyday bank, which has a continuously evolving service model engaging their customers with innovations? There is a market for both, although as the world becomes more digitized, the desire to use utility banking will disappear. In this turbulent time in banking in Norway, to maintain a competitive advantage, no one is publicizing their decision.
• If a bank chooses to become an everyday bank, they need to understand a customer's expectation. The bank must provide digital touchpoints and physical channels. Many banks in other European countries are far along in adopting these trends. According to Accenture, so far "Nordic banks have been poor in addressing most of the above trends and are not creating enough positive experiences for their customers."
• According to a survey of 28 countries around the world, Norway is 26 out of 28 (page 9) in customer satisfaction in their banking system.

### IMPACT OF PSD2 ON NORWEGIAN BANKS

• PSD2 requires that banks give third party providers of financial services access their customers' information. What this means is that Facebook or Google or any other company could be used to do your banking, pay your bills and analyze your spending, while the bank still has the money in your current bank account. This model puts a layer between the bank and their customer, which may or may not cost customers more and may or may not improve their service.
• The impact on banks, however, is tremendous. Banks have traditionally protected their data assiduously and are known as having the most robust cyber-security of any industry. This regulation forces them to give third party providers an Open API into their infrastructure and data, which is going to force significant expenditures in fintech, in a country that is already behind on their technology.
• Banks are now no longer competing among themselves, but among any organization that chooses to offer financial services. There are two kinds of service providers outline by the EU. The first, AISP, is an Account Information Service Provider offer access to account information. Such a service could use AI to analyze the customer's spending habits or pull data from several banks into a single view. PISP (Payment Initiation Service Provider) services provide the ability to pay bills and transfer money.
• Interestingly these regulations allow third-party providers to operate in all the countries of the EU as long as they are licensed in their home country. Therefore, even though banks need to get a license in each country they operate, third-party providers do not need to do so. Customers will now be able to purchase different financial services in different countries and manage them all through an AISP. The net result is that banks in Norway are now also competing with banks in other countries in the EU, who are far ahead of them on the technology adoption curve.
• All of these factors explain why the four major trends in Norwegian Banks seen by the analysts are "experimenting with their APIs, collaborating with fintechs (financial technology companies), focusing on customer centricity and setting up innovation labs. "

### Research Strategy

We began by searching for a list of commercial banks in Norway. Once we had that list, we looked at each bank's website to see if they were highlighting any offerings or changes to their commercial banking services. We found one bank with a mobile app for managing directors of corporate accounts., but that did not seem to be a new offering. We also looked for digital-only banks, but the ones we found only offered services to individuals, not businesses.

Realizing we would need to expand our search, we looked for information on digital disruptions to commercial banking in Norway. There we found several reports from large consulting companies such as Cap Gemini and Accenture about significant trends in banking in Norway.

We then expanded our search to press releases, business publications and other media to determine if any Norwegian banks had made any announcements about changes to their commercial services. We found no information in that area either.

From there, we then expanded our search even further to look for banking information in the EU. It was there we found the reason for the disruptions in the Norwegian banking system. From that information, we realized that the trends in banking were not being made public, but were happening behind the scenes and were not being advertised to the public as yet.

We were, therefore, unable to complete the request to find a specific bank that was at the forefront of a trend.
However, using the analysis from the major consulting firms and the detailed information from the news on the European Union mandated changes to banking regulations, we have been able to provide an overview of the changes coming in European banking, the reasons for them and the impact these changes are having on Norwegian banks.

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## Co-working Space: Norway

Three major co-working space providers with three or more locations in Norway were identified. They include Regus, Spaces and Oslo International Hub. While many other co-working spaces exist in Norway, none have three or more locations in the country.

### Co-Working Providers

• There are three major co-working space providers with more than three locations in Norway. The three providers are Spaces, Regus and Oslo International Hub.
• Spaces has co-working locations in over 250 cities worldwide, including five currently open in Norway and a sixth scheduled to open in December 2019.
• Regus has 21 co-working locations in Norway, most of which are in Oslo.
• Oslo International Hub has three locations in Norway, two in Oslo and one in Hovik.

### Research Strategy

In order to identify the number of major co-working providers with more than three locations in Norway, your research team started by searching co-working space listing websites, such as Coworker, for co-working locations in Norway. We then reviewed websites of these spaces to identify whether they had more than one location in Norway. This strategy led to the identification of the three co-working spaces named above. To ensure we had identified all co-working spaces that met the criteria, we then searched for lists of co-working chains in Europe and the Nordic region. We searched the websites of these chains to determine whether any had at least three locations in Norway. In addition to the chains we had already identified, we found other international chains that have locations in Norway, such as Impact Hub, but they did not have at least three locations in the country, so were excluded. Finally, we looked for news stories related to co-working in Norway to identify whether specific companies were mentioned. Many of the companies we had previously researched were mentioned in the articles found, but no new companies were identified. Therefore, we concluded that the three companies listed above are the only three companies with more than three co-working spaces in Norway.
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## Digital Banking By Industry: Norway

SpareBank 1 is a Norwegian bank that is working on creating an online service that will allow clients of multiple banks to manage their funds and process payments on a single online banking app.

### Industries — Norway

• The top 10 industries in Norway by annual revenue are Mining, Construction, Oil & Gas, Retail, Transport, Tech, Information and Communication, Insurance, Business Services, and Culture, and Entertainment and Leisure.
• The top 10 industries in Norway by number of employees are Healthcare, Retail, Construction, Mining, Consultation, Business Services, Tech, Culture, Hospitality, and Communication.
• The top 8 industries in Norway by GDP contribution are Oil & Gas, Retail, Mining, Construction, Insurance, Tech, Communications, and Transportation.
• SpareBank 1 is a Norwegian bank that is working on creating an online service that will allow clients of multiple banks to manage their funds and process payments on a single online banking app.

### RESEARCH STRATEGY

We started our search by looking into local business publications and reports about industries that are increasingly using banks that are 100% online such as cloud-based banks. Finansnorge.no, finansit.no, e24.no., and businessinsider.com are some of the sources we looked into. Nothing relevant turned up. We also examined Google Scholar but we were met with extraneous data.

Next, we started looking for the key players in the cloud-based business banking in Norway and searched their business reports determining if they are seeing a growth in users from a particular industry. The idea behind this strategy was to see if we could use the industries' biggest companies as the most demanding in the past years as a proxy to answer the query. To find the top companies in the industry, we searched for lists of top companies by revenue or a comparable metric. This strategy failed because we were unable to locate banks that operate solely online. Our search determined that Norwegian digital banks are usually working as part of a traditional bank are formed by another traditional bank or by coalition of multiple traditional, brick-and-mortar banks.

Finally, we decided to determine the biggest industries in the country of Norway and search industry reports in order to locate relevant insights regarding the demand for digital business banking services such as wireless asset transfers. The idea behind this strategy was that the biggest industries likely will have demand for digital business banking services rather than traditional and this might be emphasized in recent industry analyses. To determine the biggest industries in Norway, we used a source which lists the biggest industries based on the number of employees. Following this, we searched for reports pertaining to each of the industry. Experian.no, estudie.no, and virke.no. were looked into. Then, we scanned each of the industry analyses for insights or mentions of growing demand for digital banking services. Recent industry reports focused only on things such as growth in demand for renewable energy sources or increase in costs associated with business transition to online services.
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## Registering a New Company: Norway

Overall, the process of registering a business in Norway from the original application to being officially registered will generally take 5-7 weeks. A large part of this estimated time is due to the process of establishing a business bank account which might take four weeks. However, the actual registration, especially when done through Altinn (an internet portal), generally takes 13 days.

### OVERVIEW

• According to this report, everyone who wants to conduct business in Norway must register to Brønnøysund Register Center, to receive their "Norwegian ID number, called an 'organisation number' or org.no," which is required of companies for business transactions when using invoices, contracts, and in all communications with government agencies.
• Brønnøysund Register Center is a governing body responsible for developing, operating, and streamlining businesses, including business company registration. This agency is responsible for the administration of Altinn.
• Altinn is the digital technology platform used by Norway's government bodies for its digital services. While Altinn is co-operation of multiple government bodies, however, the Brønnøysund Register Center is the one who manages and develops the technical solution "on behalf of the co-operation."
• Altinn serves as the internet portal between Noway government and private individuals and businesses.

### COMPANY REGISTRATION PROCESS

• According to this article, there are many types of business forms in Norway, such as sole trader (sole proprietorship), private limited liability company, general partnership, and joint-stock company (public corporations). However, the most common business form used by small and medium businesses in the country is the private limited liability company (Aksjeloven).
• Additionally, limited company business formation is ideal for entities that work as a subsidiary or branch from companies originated outside Norway or foreign companies.
• A private limited liability company is required to put up minimum share capital of NOK 30,000 (US\$3,342). Thus, early in the business registration process, a company must open a bank account where the capital share must be deposited.
• The process of opening a business bank account in Norway usually takes up to four weeks due to the many numerous steps involved in verifying one's intentions to do business in the country.
• Registration of a business may be done through different channels such as a "web-based filling system, in person or through the post."
• For web-based or online channel, businesses are registered to Brønnøysund Register Center through the Altinn portal. Here is the link to the form for registering a new entity or company in Norway.
• According to Brønnøysund, the processing of company registration may vary on a day-to-day basis, but generally, for limited company applications, it takes 13 days. While sole proprietorships take nine days, and larger organizations, 25 days.
• Note that applications submitted through mail or post will take a longer time compared to applying directly to the portal.

### CONCLUSION

• Overall, the process of registering a business in Norway from the original application to being officially registered will generally take 5-7 weeks. This estimated time is because opening a business bank account takes longer than the actual registration of the company.
• The procedure for establishing a business bank account usually takes four weeks, while the actual registration of the company to Brønnøysund Register Center will take 13 days.

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10

## FinTech Companies: Norway

Ten Norwegian FinTech companies that operate in Norway and received series A, B, C or D funding in 2018 or 2019 include Signicat, Zwipe, Auka, Spiff, Exabl, Payr, Aera, Boost.ai, Novelda AS, and Quantofolio.

### 1. Signicat

• Signicat is a digital identity service provider (DISP) company based in Trondheim, Norway. It is considered to be one of the leading providers of e-ID and e-signature solutions on the European market.
• The company raised €1.6 million in series B funding in 2018.

### 2. Zwipe

• Zwipe is a fintech company based in Oslo, Norway that makes biometrics easy by "developing and commercializing award-winning biometric authentication solutions for three key areas: payment, access control, and ID."
• Zwipe’s technology is focused on working with customers’ existing infrastructure and systems and requires no external databases.
• Zwipe received €2.3 million in series B funding in 2018.

### 3. Auka

• Auka is a Norway-based fintech company that has been operating since 2010. It is headquartered in Oslo.
• The company provides a mobile payment app Settle and has a mission to make it easier for commerce and individuals to pay and get paid all over Europe.
• As part of series A, Auka raised NOK 15 million in 2018.

### 4. Spiff

• Spiff is a fintech company with headquarters in Oslo, Norway. The company is focused on developing a social savings app with the basic mission of helping people save money.
• Spiff raised NOK 3.4 million as part of series A funding in 2018.

### 5. Exabel

• Exabel is a fintech company in Norway that develops state-of-the-art AI technology which is accessible to investors worldwide.
• The company has so far developed Exabel Intelligent Monitoring, a completely automatic monitoring tool for finance companies.
• Exabel raised \$4.7 million as part of series A funding in 2018.

### 6. Payr

• Payr is the "next generation mobile banking and product comparison app" company based in Oslo, Norway.
• The company offers a finance wellness app that helps users live more fulfilling lives.
• Payr raised NOK 6.9 million as part of series A funding in 2019.

### 7. Aera

• Aera is a fintech company that functions as a payment and identification joint venture by the largest retailers in Oslo, Norway. The fintech company provides a unified payment and identification platform for retailers.
• Aera raised \$80 million as part of series C funding in 2019.

### 8. Boost.ai

• Boost AI is a fintech company that is developing an AI system for enterprises in Stavabger, Norway and around Europe.
• Boost AI provides solutions to "Scandinavian banking, finance, retail, transportation, government and insurance — solutions that makes headlines while Boost AI grows at a record rate."
• The company raised \$50 million in 2018 and 2019 as part of series A and B funding.

### 9. Novelda AS

• Novelda AS is a Norwegian fintech company specializing in developing security solutions for the financial sector in Scandinavia.
• The company develops XeThru Sensor Technology that detects "presence, distance, proximity, gestures and can also see through different materials."
• Novelda AS raised \$15 million as part of series C funding in 2019.

### 10. Quantoflio

• Quantfolio is a fintech company based in Oslo, Norway, that has produced a machine learning software which specializes in selecting the best savings products by using a quantitative approach.
• The company serves banks and wealth managers with a digital presence.
• Quantfolio raised an undisclosed amount from Tieto as part of series A funding in 2019.
Sources
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##### Quotes
• "Statistics Norway is the national statistical institute of Norway and the main producer of official statistics. We are responsible for collecting, producing and communicating statistics related to the economy, population and society at national, regional and local levels."
##### 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
• "Atom Bank, WeBank (Tencent Holdings Limited), N26, Starling Bank and Tandem Bank are key Neo and Challenger Bank service providers in Global Neo and Challenger Bank market. Other prominent players in the market include Movencorp, Simple Finance Technology, Fidor Group, etc."
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• "A highly automated niche bank focusing on intuitive on-the-spot financing solutions for small and medium-sized enterprises through employing modern technology, data-driven credit risk management and an innovative distribution model. "
• "Aprila 's products and services integrate the customer's accounting system for tailoring with real-time credit scoring. It's ambition is to remove financial stumbling blocks that prevent healthy businesses from succeeding."
• "Year Founded: 2016"
##### Quotes
• "We started Aprila to help small businesses. It is high time that banks' handling of small businesses is challenged. Today's banking services are both complicated, cumbersome and little available. This means that many are held back by a toolbox built for large companies. "
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• "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."
##### Quotes
• "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."
##### Quotes
• "Revolut Ltd is a company registered in England and Wales (No. 08804411)"
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• "More digital banking has given the banking sector large productivity gains and hence lower costs."
• "There were 943 branches by the end of 2017, and the average number of inhabitants per bank branch was about 5,600. As more and more people are using banking services online, the number of branches has decreased significantly over several years. Mobile payment solutions have been well received by Norwegian households and are becoming increasingly popular. More digital banking has given the banking sector large productivity gains and hence lower costs. In 2017, the cost-income ratio in Norwegian banks was on average 47.5%. The ratio increased somewhat in 2017, due to changes in the pension system and the introduction of a new tax on financial services."
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• "Norway is a mature market for digital banking services. It ranks in the world’s top 10 countries with the highest internet penetration (with 99 percent of its population using the internet in 2017).1 Norwegian customers in our survey are avid users of online and mobile banking services for both transactional and informational services, such as bill payments (97 percent of the Norwegian customers surveyed used digital channels) or updating account details (96 percent of the Norwegian customers surveyed used digital channels). They also clearly prefer to use digital channels when applying for new products (figure 2)."
• "Norwegian banks appear to have capitalized on these developments. DNB Bank, for instance, digitized its mortgage application platform in 2017.2 Customers can now apply for mortgages on their mobile apps. The bank is now planning to streamline the loan process for its commercial clients."
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• "Getting an appointment at a Norwegian bank can be a tiresome experience. As Ferratum Bank is a fully digital service there's no waiting in lines. Instead you have access to your money via a smartphone app (iOS and Android) wherever and whenever you need it."
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• "Norway is a digital savvy market and has one of the highest smartphone penetration rates in the world "
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• "9 out of 10 SME customer relationships are established digitally. SME customers used the Internet bank and the mobile bank more than 12.7 million times in 2016"
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• "Mobile Solutions is the ultimate on-demand mobile banking service. View account balances and recent transaction history, make or schedule transfers, pay bills and other people, change or reset passwords, and even deposit checks right from your smartphone with the free Norway Savings Mobile Solutions app—all on the go. Best of all, Mobile Solutions is safe and secure."
##### Quotes
• "Enter the startups. In the UK, the main contenders are Tide (focused solely on SMEs, small or medium-sized companies) and Starling (which has retail accounts as well). In France, the big player is Qonto. In Germany, there’s Penta and Hufsy (which is actually based in Denmark). In Norway, Aprila. For “micro-businesses” of 1-10 people, there’s Holvi in Finland, Coconut, Anna and CountingUp in the UK, and Shine in France."
• "Most of the business bank startups are growing super fast:"
##### Quotes
• "Kjedenes løsning med bestilling på nett og henting i butikk vil ikke redusere kostnadene, men tvert om kreve økt betjening"
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• "If you are a customer of both SpareBank 1 banks and Sbanken, you can now see accounts from both banks in SpareBank 1's online and mobile bank - and vice versa. You can also collect accounts from other SpareBank 1 banks from before"
• "- The vast majority of Norwegians are customers of at least two banks. Now we want to make it easier for people to get an overview of their finances, regardless of how many customer relationships they have, and where, says Thomas Allan Nygaard, product owner for digital banking at SpareBank 1. "
• "In the first version of the solution you will be able to see available accounts, balance and transactions. Eventually it will also be possible to make payments across."
• "- This will be useful, for example, for families where members are customers of different banks. With access to everything in one solution, it becomes much easier to share and keep track of the family's overall finances, says Nygaard."
##### Quotes
• "The most popular business form, generally registered by small and medium businesses, is the private limited liability company (Aksjeloven). The incorporation of an A.S requires a minimum share capital of NOK 30,000 (approximately EUR 4,000). "
• "As mentioned above, this business form is of high importance to small and medium sized companies operating on the Norwegian market, but is also the main type of legal entity that is employed when operating through a subsidiary in Norway."
• " In the beginning of the process of company formation in Norway, the founders must open a bank account and deposit the company’s capital. The bank will issue a deed of deposit and the balance sheet must be examined by an outside auditor. This auditor will issue a statement confirming the opening balance and the company's acceptance of the auditor appointment."
• "As a general rule, the procedure of company registration in Norway takes between 5 to 7 weeks, depending on the business form chosen for registration. As mentioned in this article, the company has to establish a corporate bank account for the newly founded business, a procedure which can take approximately 4 weeks."
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• "Everyone that conducts business in Norway must register with the centralised Registry at Brønnøysund. The business will receive a Norwegian ID number, called an ‘organisation number’ or ‘org.no.’ This number is required for contracts, invoices and any communication with authorities and governmental organisations."
• "When setting up in Norway, every new company must have a bank account. To open a business bank account, there is a KYC process and many steps needed to verify your businesses intentions. This process can take up to a month so it is pertinent to plan for this challenge."
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• "We note that submissions by mail may have a significantly longer processing time than is apparent from the overview above."
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• "The Brønnøysund Register Center develops and operates digital services that streamline, coordinate and simplify dialogue with the public for individuals and businesses. We operate many of the country's most important registries and have the administrative responsibility for Altinn."
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• "Altinn is an internet portal for digital dialogue between businesses, private individuals and public agencies. Altinn is also a technical platform that government bodies can use to develop digital services."
• "Altinn is developed, operated and managed by the Altinn co-operation, that consists of multiple government bodies. The Brønnøysund Register Center manages the technical solution on behalf of the co-operation, and decides how it should be developed."