Denmark’s startup ecosystem is gaining attention with emerging players like Pluto.markets and Lunar leading the charge. Pluto.markets, an investment app, is making a name for itself as it attempts to disrupt the brokerage market in the Nordics, while Lunar continues to expand its banking services across the region. Both companies, despite being based in a country with a population of just under six million, are looking beyond local boundaries, aiming to capture larger market shares. This discussion between the CEOs of Pluto.markets and Lunar highlights the opportunities and challenges faced by Danish fintechs as they navigate the complex landscape of global finance.
Danish fintech companies have been compared to their German counterparts, with Pluto.markets being likened to Trade Republic and Lunar to N26. This comparison reflects their strategies and market ambitions. Historically, Denmark’s tech scene has been characterized by its focus on local markets, but the presence of companies like Lunar and Pluto.markets signifies a shift towards global outreach. This development is particularly significant given Denmark’s smaller population, which necessitates a broader perspective for scalability and success.
How Do Pluto.markets and Lunar Position Themselves?
Pluto.markets was founded in 2021 by Joakim Bruchmann and Oscar Vingtoft, with the aim of challenging traditional brokerage services. During a shared discussion, Bruchmann emphasized the unique approach of Pluto.markets compared to Lunar, stating:
“We see the Pluto, Lunar dynamic being a little bit like N26 and Trade Republic in Germany, we think there is room for both.”
Meanwhile, Lunar, with over 950,000 customers and a valuation of approximately $2.2 billion, continues to solidify its presence in the Nordics.
What Opportunities Exist for Danish Fintechs?
The opportunity for Danish fintechs lies in their ability to operate within a highly profitable banking region with limited competition. Ken Villum Klausen, CEO of Lunar, highlighted this point, stating:
“The infrastructure is almost a monopoly, so if you are able to open that and push through you can build a significantly sized business.”
This environment allows for growth and expansion, providing fintechs with a platform to build substantial businesses.
Joakim Bruchmann also addressed the importance of localization in fintech:
“The playbook with building a fintech product for the entire world doesn’t really hold anymore, like very few people have managed to pull it off, so I am a big believer in localisation if you want to capture significant wallet.”
His comments underscore the strategy of tailoring services to fit specific markets, rather than a one-size-fits-all approach.
Denmark also presents unique working conditions, which affects how companies operate. Bruchmann noted the differences in working hours compared to other European countries, pointing out:
“One of the big lessons I have had to learn as a leader is also to understand that people don’t put in the hours that I do, or that I used to do as a banker.”
This highlights a cultural aspect that may influence productivity and business operations.
Investors and entrepreneurs looking at the Danish fintech sector should consider the balance between local focus and global aspirations. Adapting to local conditions while maintaining a global outlook can be key to success. While challenges remain, such as the need for localization and understanding cultural differences in work ethics, the potential for growth in profitable, less competitive regions offers promising opportunities for these fintech companies to thrive.
