Stockholm Develops as Hub for Fintech Innovation

by Jörgen Eriksson on June 25, 2015

imageIn a new report written by Stockholm School of Economics researchers Robin Teigland and Claire Ingram, the authors shows that investments in innovative Swedish financial technology companies increased sharply last year.

Fintech is transforming the global financial industry at a rapid speed and there is a strong interest from investors in the sector. The growing sector has attracted investments at an estimated USD 12.2 billion globally in 2014 as well as interest in a number of regional hubs, being Silicon Valley, New York, London, Stockholm, and Australia.

Stockholm is one of Europe’s largest hubs for the financial technology sector according to the report. We are not surprised. Ever since disruptive innovation through financial software technology was pioneered in Sweden by companies such as Front Capital Systems, Trema Treasure Management, Interbizz and ORC, the sector has been strong.

The pioneering companies nurtured a cluster of talented financial engineers, software developers and sales executives that has brought the innovations to the global financial industry. When I worked in Trema Treasury Management in the 1990s, we added a large number of the global Fortune 500 companies to our  client list. In those days fintech was very much about the institutional side of the financial industry.

In Trema, we developed the software that runs the European Central Bank, large trading departments and major asset management operations of banks like SEB and Citibank and such as ADIA Investment Authority. Today such backbone software is mainstream. Today new Fintech from Stockholm is more about retail solutions, with companies like Klarna, izettle and Trustly.

A recent report commissioned by Nasdaq OMX in Stockholm and the Stockholm Chamber of Commerce titled “Growth Stockholm: The Financial Ecosystem as a Growth Engine” highlights how the Finance Sector contributes 5 percent of Sweden’s GDP and two percent of its employment but is the fourth largest sector in terms of value in the Swedish economy. Topped by only the Retail, Construction and Business Services sectors, the Swedish Finance and Insurance sector was valued at SEK 147 billion in 2013.

About Jörgen Eriksson :

Jörgen Eriksson is the founder of Bearing and is the Chairman of the firm since it was created. He has successfully expanded Bearing into covering projects on four continents. He is also Adjunct Professor of Innovation Management at the International University of Monaco and at Universitat Politècnica de Catalunya in Barcelona and he is an active member of the Founders Alliance organisation.

Working with consulting engagements across Bearings practices, he has over the past fifteen years participated in and supervised a large number of client projects, from innovation system development and place development and branding, to merger and acquisition assignments and leading edge research and business development activities for key clients.

His new book, Branding for Hooligans, will be published in 2015. It is about how innovation and branding are key survival factors in our modern times of hyper competitive markets.

Prior to Bearing, he was Director of Europe, Middle East, and Africa for Trema Treasury Management, a technology and consulting services provider, supplying financial software solutions for the global financial industry, Clients included The European Central Bank, Citibank, SEB, South African reserve Bank, Deutsche Bank, Abu Dhabi Investment Authority (ADIA), as well as many other large financial institutions and Fortune 500 companies.

Early in his career Eriksson was educated at the Stockholm School of Economics, where he studied economics, financial economics and philosophy. He then worked in Scandinavian investment banks and also for the Swedish Institute of National Defense Research.

You can contact Jörgen on e-mail jorgen.eriksson@bearing-consulting.com, connect on LinkedIn on http://fr.linkedin.com/pub/jörgen-eriksson/0/38/8a0/ and follow him on twitter on joreri508.

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