The FinTech Market
The financial sector is undergoing significant change. In particular, modernization and digital transformation is changing the way the industry interacts with its customers, and to some extent also the structure in the industry. The use of online banking is continuing to grow across markets but there is still a significant untapped potential. The average penetration rate in Europe is estimated to be around 60%, where Denmark, for example, stands at 94% (Statistica 2020).
The emerging trends in open banking and platform companies offering banking as a service, are changing the playing field and the structure of the industry, as barriers to entry are lowered. Furthermore, we see an increase
in customer expectations for digital and user-friendly solutions across the banking and insurance sector. Typical FinTech solutions include management of data from multiple systems, partners and users, while maintaining a high level of security and user-friendliness.
In 2021, the financial sector experienced a general consolidation trend with mergers and acquisitions of banks and insurance companies. Especially the mobile payment space saw further emergence of new neobanks and the accelerating growth of FinTech startups supported by successful funding rounds. Neobanks
and traditional banks showed a strong interest in banking as a service provider, with a focus on building AML solutions and to fulfil regulatory requirements including GDPR.
Our FinTech Business
With our Inspire-Build-Run model we empower our FinTech customers in their digital transformation journeys. This across a broad sector spectrum in retail banking, investment as well as life- and non-life insurance. We are specialists in developing customer facing and advisor facing solutions as well as infrastructure and eco-systems. This to advance mobile payment solutions, digitalizing transaction processes and bringing existing applications into the cloud.
In 2021, we moved further into the ne- obank and FinTech startup space. One example was the development of the digital front-end for Kompasbank, a new Danish bank focusing on small and medium enterprise. We also made Trifork Labs investments in the challenger bank Kashet, &Money (in cooperation with three major Danish banks), and founded the new startup ComplyTeq that focuses on onboarding and compliance.
A new partnership was made with Tuum, a banking as a service vendor, and we have increased our focus on advising, developing and testing new FinTech applications and service offerings with new entrants and start-ups. This has sparked interesting dialogues with potential new customers all over Europe.
In 2021, Trifork had the opportunity to partner with selected FinTech companies to build new customer-facing products and solutions. This included block-chain, open banking and voice-to-text that make life easier for the end-customer and more cost-efficient for our FinTech costumers.
With 15+ years of dedicated industry experience, we won new customers in Sweden, Switzerland and Denmark, thereby increasing our FinTech service offering and geographical footprint.
Some examples of our FinTech activities include an AI solution for a leading Swiss insurance company, enhancement and update of infrastructure at VocaLink/ Mastercard in the UK and implementation of a Google AI voice solution for a Danish bank in collaboration with Google.
Strategic Priorities
- Expand the collaboration and business in Switzerland, Denmark, Sweden, the Netherlands and the United Kingdom
- Build new partnerships around new ecosystems and 3rd party offerings
- Further leverage cross-selling, by utilizing Trifork family members capabilities with Nine, OpenCredo, Erlang Solutions & Netic
- Increase productification of services and acquire specialist product companies
- Further invest in new Fintech resources and capabilities
