Over the past five years, companies in Stockholm received 18 percent of venture capital inflows to European FinTech companies, according to a fresh report from the Stockholm School of Economics (SSE). That establishes Stockholm as Europe’s No. 2 FinTech city, after London.
“I believe that this sector is growing so fast because we have a strong history in FinTech,” said Robin Teigland, Associate Professor at SSE and one of the authors of the report, in an interview with the Swedish Radio. “We have a lot of expertise in Sweden.”
Stockholm’s position as a FinTech hub is the result of more than 30 years’ experience integrating IT with marketing and new product development operations. The report cites Stockholm as a dynamic hub for innovative payment, funding, banking, and transaction technologies. The city plays a significant role in this activity as it is an internationally recognized innovation engine and prominent technology hub that performs well beyond its size.
“Outside of Sweden Stockholm is a well-known hub for extremely sharp financial technology, and I am often asked how this city came to be such a magnet,” says Veronica Augustsson, CEO of Cinnober. “I think the community of high-tech early adopters, our Swedish leadership style and our specific engineering culture are some of the reasons behind the FinTech success. And we at Cinnober are more than happy to contribute to this!”
Stockholm stands for one-third of the Swedish economy and its business community is home to many national and multinational headquarters. The financial sector plays a fundamental role in this ecosystem and creates conditions for growth. It is the fourth largest sector by value in the Swedish economy. Stockholm is ranked as the leading Nordic financial center, with strengths in such areas as innovation and technology, and with the headquarters of four major Nordic banks and the largest stock exchange.
The SSE reportwas authored by Nicholas Wesley-James, Claire Ingram, Carl Källstrand and Robin Teigland.
Summary of the report: Stockholm – Europe’s No.2 FinTech city