The Norwegian fintech industry is growing and maturing rapidly. Since 2016 the number of fintechs in Norway has grown from less than 30 companies to more than 180 companies as of 2023.
The growth of the fintech sector in Norway has been accelerated by a highly digitalized banking and public sector, the maturing of enabling technologies like AI, machine learning, blockchain etc., combined with new regulations in the financial sector. EU’s PSD2 regulation, for example, has paved the way for new players in the field. As one of the most active early stage investors and startup accelerators in Norway throughout the last 6 years, TheFactory Accelerator & VC continuously monitors the Norwegian fintech landscape and publish the Norwegian Fintech Map on a quarterly basis. TheFactory has seen the emergence of many new fintechs as well as fintech-focused accelerator programs and clusters in Norway.
So far, the Norwegian fintech sector comprises many small startups and early stage companies.
Investments in Norwegian Fintech almost doubled in 2021, both in terms of invested capital and the number of financing rounds. NOK 2.1 billion was invested in Norwegian fintech in 2021, up from 950 MNOK in 2020.
One sign that the industry is maturing is that Norwegian fintechs now have established their own industry organization Fintech Norway, which works to improve the industry’s framework conditions. Compared with its Nordic neighbors, like Sweden and Denmark, Norway does not have any fintech unicorns yet, but several companies are accelerating fast.
In the payment segment Vipps is by far the leading Norwegian fintech in terms of traction and market penetration. Vipps offers seamless P2P payments, invoice management and settlements, and e-commerce solutions. In a short period of time, Vipps built a user base of +4 million Norwegian users. In Q4 of 2022, the Vipps merger with MobilePay from Denmark was approved by the EU commission, and post merger the new Vipps Mobile Pay now have 11+ million users, thereby becoming the largest mobile wallet and payment solution provider in the Nordics.
Norwegian fintechs like Vipps, Signicat, Two, Meawallet, Firi, Exabel, Zwipe, to name a few, have made their marks in the international markets, but the majority of Norwegian fintech companies are still in the early stages of development and scaling.
Of its Nordic neighbors, Finland is probably most comparable to Norway in terms of number of fintech companies and investments. Denmark has in the last few years become a fast growing fintech nation, with successes like Lunar, Pleo and aiia (acquired by Mastercard). Sweden reigns supreme with international successes and unicorn companies such as Klarna and Zettle (acuired by PayPal), and Tink (acquired by Visa). Sweden has a highly developed venture capital industry and attracts substantial international capital.
Differences aside, the Nordic countries combined comprise one of the most digitally advanced and innovative fintech regions globally. The fintech hubs of the region collaborate closely and contribute to a flourishing ecosystem. TheFactory has, as one of the founders of the Nordic Fintech Alliance, worked closely with Copenhagen Fintech Lab (DK), Helsinki Fintech Farm (FI), NCE Finance Innovation (NO), Findec (SE), and Fintech Cluster (IS), to create cross-border opportunities for fintech startups and scale-ups. This alliance will work to promote the Nordic fintech industry towards a global industry in order to create global opportunities and alliances for the startups born in the Nordic region. To get a glimpse of the Nordic fintech action, be sure to visit Nordic Fintech Week, Sthlm Fintech Week, Norwegian Fintech Festival and Oslo Innovation Week.
Curious to learn more about the Norwegian startup and fintech scene?
Download TheFactory´s magazine StartupBeat #3 — Fintech up North or visit www.thefactory.no to learn more about our programs and portfolio.