The Nordic banking sector, recognized for its advanced digital environment and dedication to financial innovation, faces a range of new challenges in 2025. These challenges stem primarily from rapid technological advancements, strict regulatory frameworks, and the evolving expectations of consumers.
As Nordic banks strive to remain competitive and future-proof their operations, events like NextGen Nordics on April 29, 2025, at Münchenbryggeriet in Stockholm provide timely opportunities to address these issues. Here’s a closer look at the top five challenges and how discussions at NextGen Nordics can help forge solutions.
1. Adapting to Regulatory Changes
The regulatory landscape presents one of the most pressing concerns for Nordic banks, especially with the rollout of the Digital Operational Resilience Act (DORA) and the mounting pressure for compliance with EU regulations. DORA focuses on ensuring that financial institutions can withstand and respond effectively to cyber disruptions, emphasizing 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 explore strategies for navigating these regulatory challenges. Experts will share best practices for compliance and tools that can help Nordic banks bolster their resilience against cyber threats and operational disruptions.
2. Managing the Shift to Instant Payments
As the transition to real-time payments accelerates, Nordic banks encounter challenges related to scalability, security, and fraud prevention. The Verification of Payee (VoP) regulation, which seeks to ensure that payments are directed to the correct recipient, plays a key role in this shift.
The session on “Preparing for the Instant Payment Regulation’s Verification of Payee (VoP)” will provide banks with the tools and knowledge necessary to address these challenges. As the regulation gains importance, this discussion will focus on the technological and operational steps required for VoP compliance, alongside the broader implications for instant payment systems.
3. Navigating the Rise of Central Bank Digital Currencies (CBDCs)
While CBDCs have the potential to enhance payment systems and improve monetary policies, they also pose risks of disintermediating traditional banking systems. Nordic banks must carefully assess the benefits and potential threats that CBDCs present.
The panel on “Do the benefits of Central Bank Digital Currencies (CBDC) outweigh the potential risk of disintermediation?” will investigate this complex topic. By discussing the economic and operational impacts of CBDCs, the session will assist banks in weighing risks and rewards, identifying how they can adapt to or take advantage of CBDC technology.
4. Addressing the Growing Risk of Fraud
As faster payment systems gain traction, banks are witnessing an uptick in real-time fraud. Detecting and preventing fraud in real-time transactions has become a significant challenge for financial institutions, especially as fraud tactics evolve.
The panel on “Faster payments, faster fraud – how are financial institutions addressing the rising risk of fraud in real-time transactions?” will tackle this issue directly. Industry experts will offer insights on how banks can enhance fraud detection mechanisms and strengthen security protocols to combat the increasing threat of fraud in the instant payments era.
5. Leveraging Open Finance
The emergence of open finance presents new opportunities but also raises concerns regarding data privacy and security. The session titled “Can the Nordics lead the open finance revolution?” will explore how Nordic banks can capitalize on open finance to remain 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 evident that 2025 will be a crucial 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 a valuable platform for discussion and problem-solving.
By participating in the various panels and sessions, financial institutions will gain the insights needed to navigate the future of banking and maintain their leadership within the global financial ecosystem. Register now to secure your spot! Bank representatives can attend for free, while 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.