In recent years, the Swedish fintech industry has faced significant headwinds, including high inflation and a more reticent capital market. However, 2024 saw signs of recovery, with improved access to capital and increased recruitment activity.

A 2024 survey conducted by the Swedish Fintech Association (SweFintech) found that 48% of the 58 fintech companies polled successfully raised capital in 2024, a modest but meaningful increase from 45% in 2023.

The perception of capital scarcity also declined. In 2024, 23% reported difficulty in raising funds, a dramatic improvement from 59% the year before.

In addition to access to capital, the labor market also improved in 2024. 62% of the surveyed fintech companies hired new employees last year, marking a 9 point increase from 2023. 74% will need to hire more employees in 2025, a slight increase of 3 points from the previous year. This underscores growing market demand and business confidence.

Talent demand

SweFintech member company Blaq, which specializes in financial recruitment, noted a shift in recruitment policies, with companies focusing more governance and control roles rather than visionary competencies such as business development.

In particular, the implementation of new legislation provided an uptick for compliance functions, particularly in relation to the EU’s Digital Operational Resilience Act (DORA). DORA, which entered into application on January 17, 2025, imposes stringent cybersecurity requirements for EU banks, their suppliers and third-party partners, aiming to ensure that financial institutions can withstand, respond to, and recover from technological disruptions.

Management skills was also in demand, especially CEOs and CFOs with experience of streamlining and transitioning businesses. Finally, demand for technical expertise increased, especially in the domain of artificial intelligence (AI) which has become an increasingly important component both in business models and as a daily tool.

Regulation remains a burden despite efforts

2024 also brought a number of regulatory improvements. Sweden’s financial supervisory authority, Finansinspektionen (FI), made efforts to engage with the industry, carrying out various surveys to understand the use of emerging technologies like AI and open financial services in the country.

Additionally, the government tasked a number of agencies with starting regulatory simplification work for innovative companies, including FI. Though FI has begun this work and held dialogue meetings with industry associations regarding guidance needs, no concrete proposals have been made yet.

Despite these initiatives, regulation remains a signifiant burden for Swedish fintech companies. In 2024, 67% of respondents reported that regulations concerning anti-money laundering and combating the financing of terrorism (AML/CTF) had a significant impact on their operations. However, this marks a 15 point decline from 2023, suggesting an easing of pressure.

By contrast, concerns over IT and information security increased by 6 points. This is in part due to the entry into force of DORA. Furthermore, General Data Protection Regulation (GDPR) remained a key challenge, with 59% of companies reporting a major impact on operations, and 78% believing that the regulatory burden from the regulation is heavy.

Other challenges and recommendations

In addition to regulation, access to critical financial services remains a key challenge for fintech companies. In 2024, 31% of companies said they had been affected by de-risking. Though this represents a slight decline compared to 39% in 2023, that rate is still high and represents a significant increase from 18% in 2023.

Of the companies affected by de-risking, a third said they had a request to open an account refused, 24% were given a limited range of services, and just under a fifth were off-boarded by their bank.

This year, SweFintech continues to advocate for the introduction of a regulatory sandbox to support fintech innovation and provide clearer guidance. On this topic, industry interest is high, with 67% of respondents stating that they would consider participating in a sandbox and 76% believing that it is a guidance method that regulators should consider.

The organization also advocates for the creation of a national register of debt and credit information. In autumn 2024, the government adopted some inquiry recommendations, including lowering the interest rate ceiling to 20%. However, it chose not to move forward with establishing a national debt and credit register. SweFintech criticizes this decision, arguing that such a register, along with the new lower interest rate, would be effective in reducing over-indebtedness.

Nordic fintech trends in 2025

The Nordic region is undergoing a profound fintech transformation in 2025, with key trends shaping the industry including corporate-led digital innovation, sustainable fintech and digital payments.

PostNord is currently expanding its blockchain-based logistics platform into a full-scale digital payment and identity solution for e-commerce. Meanwhile, Ikea is testing embedded finance within smart home systems, while retailers including H&M and Coop are planning fintech ventures, focusing on loyalty tokens and automated supplier financing platforms.

In the fintech sector, sustainability is taking center stage, with notable developments across green lending, carbon footprint tracking, environmental, social and governance (ESG) investment, as well as climate risk tools for small and medium-sized enterprises (SMEs).

Finally, digital payments initiatives are being carried on. In Sweden, for example, the central bank is exploring the introduction of the e-krona, a digital complement to cash. Pilot projects were conducted last year, examining aspects like offline functionality and user experience.

Featured image credit: edited from freepik