London-based fintech firm Nucoro believes Sweden is set to see huge growth in its digital wealth management sector, citing three key factors driving the development.
The first is a rapidly growing population of mass affluent and high net worth individuals, Nucoro says, with a significant percentage of Sweden’s workforce employed in the technology and the telecommunications sectors, and the country’s huge and growing focus on fintech.
The firm writes that analysis of industry data reveals that 7 per cent of people in work in Sweden earn over USD90,000 a year or SEK906,000. It’s analysis also reveals a growing pool of wealthy people in Sweden, many of whom Nucoro believes are increasingly open to using digital wealth management services.
There were around 200,500 millionaires in Sweden in 2018, and this is set to rise to 245,000 (an increase of 22 per cent) by 2023. In terms of those Swedes worth USD30 million or more, there were around 3,820 with this level of wealth in 2018, and this is expected to rise to 4,700 – an increase of some 25 per cent – by 2023.
In terms of HNWs and the technology and telecommunications sector, Nucoro reveals that around 16 per cent of Sweden’s wealth is derived from the technology and telecommunications sectors. This is one of the highest percentages of any country, and it means that many Swedes are comfortable using digital wealth management services.
Sweden was one of the earliest adopters of technology in financial services, and this is reflected in its fintech sector, which attracted a record investment last year, Nucoro. Sweden’s fintech sector saw investment of EUR778 million in 2019, the seventh largest amount of any country in the world, and in Europe only the UK and Germany received more.
Stockholm has one of the most thriving fintech scenes in Europe. It has 114 banks and nearly 400 fintech companies. Some 18 per cent of the Swedish capital’s citizens are employed in the tech sector, and the most common job in Stockholm is a programmer.
Nikolai Hack, COO Nucoro says: “Sweden is an incredibly attractive market for the digital wealth management sector. Over the next few years, we expect to see a rapidly increasing number of services in this area being launched to cater for a growing pool of people who are comfortable using digital platforms to manage their investments and wealth.
“We are keen to work with both traditional and non-traditional financial services companies in Sweden to help them develop propositions in this area.”