5 FinTech companies transforming the financial space in Denmark

By Megha Bhattacharya

The Danish FinTech sector has experienced significant growth, facilitated by a highly educated and digitally literate population, specific government policies aimed at promoting financial innovation, and the development of Copenhagen FinTech as an international fintech hub since 2016. The largest group of FinTech businesses in Denmark operates within the sector of digital payment solutions with mobile payments currently at the forefront.

Check out these 5 significant FinTech companies in Denmark –

1. Lunar

Lunar, the Nordic challenger bank has raised €40 million in Series C funding from existing investors. The injection of capital follows a €20 million Series B disclosed in April this year.

Recently, FinTech Lunar selected FIS‘ cloud-based treasury and risk management solution with an aim to gain support in liquidity optimisation, risk management and expansion. Lunar selected FIS’ private cloud-based Ambit Quantum for simplifying hedge accounting, regulatory compliance etc. The FinTech will implement the solution on the private cloud under a managed services contract.

Established in 2015 in Denmark, Lunar is a FinTech that aims to provide a 100% digital banking experience through its banking app. In 2018 Lunar Way received the two PSD2-licenses – AISP and PISP and in 2019 the Nordic FinTech received a European banking license from the Danish FSA.

2. Nordic API Gateway

Nordic API Gateway is a Nordics open banking platform provider. Through one API, it aims to simplify access to aggregated financial data with the extensive coverage of both personal and business bank accounts in the Nordics.

Nordic API Gateway, recently, rolled out a new platform – Aiia in a bid to make innovations for businesses affordable without the need for acquiring and maintaining an AISP or PISP license. The FinTech states that businesses will be able to benefit from the PSD2 enabled access to account to account payments alongside access to financial data.

The FinTech empowers a wide selection of companies, including Danske Bank, DNB, Jyske Bank, OP Financial Group, and Pleo, among others, and plans to announce upcoming partnerships with new tier 1 banks in the region soon.

3. Pleo

Established in 2015 in Copenhagen, Pleo is a smart company card solution that aims to decentralize company spending, reduce administrative complexity, simplify bookkeeping and eliminate expense reports.

Recently, Pleo announced the launch of Pocket, a new solution to track money owed between a company and its employees. The new feature will be added within the Pleo app and aims to support businesses in managing their out-of-pocket expenses. Pleo stated that Pocket covers mileage claims and tracks the expenses paid with ATM cash as well as the use of company cards for personal purchases.

FinTech Pleo also partnered with accounting software firm Aqilla to provide smart credit cards alongside an automated expense solution at a discounted rate. Aqilla users will get a pre-authorised card to remove the need for upfront spending, alongside automated expense reports, significantly simplifying bookkeeping.

4. Cardlay

Established in 2016 in Copenhagen, Cardlay allows issuing Banks and card issuers to capitalize digitally on existing portfolios. It offers payment card functionalities and added value within cards, transactions, travel expense management, mileage, and VAT reclaim with a single software platform to issue, load, and manage cards and expenses.

The FinTech has entered into a partnership with Mastercard Europe in a bid to make its white-label expense management solution and automatic VAT reclaim available on Mastercard’s European issuing banks’ network. The partnership is expected to facilitate the expansion of Cardlay’s solution across Europe.

Cardlay’s Card Management platform is an interface that issues, loads and manages corporate cards and virtual cards in real-time. The platform also offers an expense management solution, capturing data and allowing the digital upload of receipts, while also enabling expenses to flow directly into Cardlay’s VATTAX solution, which processes cross-border VAT reclaim for clients.

5. Nets

Nets is one of the largest payment cards, payment solutions and payment exchange information companies in Northern Europe.

Payment processor Nets recently announced a partnership with open banking platform Fabrick for facilitating the development of products, services and new ecosystem business opportunities in the Instant Payments space. The companies aim to create new solutions for delivering revenue streams for their new and existing clients.

Nets also said that the Luxembourg-based Yoba Smart Money has selected its payment and liquidity solution for SMEs. Nets will be providing a full-scale solution that incorporates a corporate credit and debit card solution. Yoba aims to offer SMEs a smarter way to pay their business costs through the convenience and speed of a credit card along with the provision of on-demand liquidity and cost management tools.

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