The Nordic banking sector, known for its advanced digital landscape and commitment to financial innovation, is experiencing a wave of new challenges in 2025. These challenges are largely driven by rapid technological advancements, stringent regulations, and the evolving demands of consumers.
As Nordic banks work to stay competitive and future-proof their operations, events like NextGen Nordics on 29 April 2025 at Münchenbryggeriet, Stockholm, Sweden offer a timely opportunity to tackle these issues. Here's a closer look at the top five challenges and how the discussions at NextGen Nordics can help shape solutions.
1. Adapting to regulatory changes
The regulatory environment is one of the most pressing concerns for Nordic banks, particularly with the implementation of the Digital Operational Resilience Act (DORA) and the increasing pressure for compliance with EU regulations. DORA, which aims to ensure that financial institutions can withstand and respond to cyber disruptions, places a significant emphasis on operational resilience.
At NextGen Nordics, the panel session on ‘How can banks fortify their operational resilience in the face of DORA and its growing demands?’ will dive into strategies for meeting these regulatory challenges. Experts will provide insights into the best practices for compliance and the tools that can help Nordic banks enhance their resilience against cyber threats and operational disruptions.
2. Managing the shift to instant payments
With the shift toward real-time payments, Nordic banks face new challenges related to scalability, security, and fraud prevention. The Verification of Payee (VoP) regulation, which aims to ensure that payments are made to the correct recipient, is a significant part of this shift.
The session on ‘Preparing for the Instant Payment Regulation’s Verification of Payee (VoP)’ will equip banks with the tools and knowledge to meet these challenges. As the regulation grows in importance, this discussion will focus on the technological and operational steps required to ensure VoP compliance while also addressing the broader implications for instant payment systems.
3. Navigating the rise of central bank digital currencies (CBDCs)
While CBDCs promise to enhance payment systems and improve monetary policies, they also introduce the risk of disintermediating traditional banking systems. Nordic banks must evaluate the benefits and potential threats posed by CBDCs.
The panel on ‘Do the benefits of Central Bank Digital Currencies (CBDC) outweigh the potential risk of disintermediation?’ will explore this complex issue. By discussing the economic and operational implications of CBDCs, this session will help banks weigh the risks and rewards, and identify how they can adapt to or leverage CBDC technology.
4. Addressing the growing risk of fraud
As the adoption of faster payment systems accelerates, banks are seeing a rise in real-time fraud. The ability to detect and prevent fraud in real-time transactions has become a significant challenge for financial institutions, especially as fraud tactics become more sophisticated
The panel on ‘Faster payments, faster fraud – how are financial institutions addressing the rising risk of fraud in real-time transactions?’ will address this challenge head-on. Industry experts will share their insights on how banks can implement better fraud detection mechanisms and strengthen their security protocols to combat the rising tide of fraud in the era of instant payments.
5. Leveraging open finance
The rise of open finance presents new opportunities but also risks related to data privacy and security. The session on "Can the Nordics lead the open finance revolution?" will explore how Nordic banks can leverage open finance to stay competitive, while navigating the complexities of data sharing, security, and customer privacy.
As Nordic banks continue to innovate and adapt to the changing landscape, it is clear that 2025 will be a pivotal year for the sector. With challenges ranging from regulatory compliance and fraud prevention to the opportunities presented by AI and open finance, NextGen Nordics offers an invaluable platform for discussion and problem-solving.
By attending the various panels and sessions, financial institutions will gain the insights they need to navigate the future of banking and continue their leadership in the global financial ecosystem. Register now to secure your spot! Bank representatives can attend for free, and tickets are available for software, IT, and consultancy providers to financial institutions. This is a must-attend event – don’t miss your chance to stay ahead of the curve.