Open Banking in Denmark

Open banking in Denmark - Nordigen

In September 2019, PSD2 went live in the EEA.The Danish financial sector is one of the most digitised in the worldand major Danish banks already offer open banking.
 

What is Open Banking and PSD2?

Open banking is banking practice that securely shares financial information such as consumer banking, transactions and other financial data to third-party financial service providers (Estevez, 2020). Sharing data is done through the use of application programming interfaces (APIs) and only with the consent of customers (The Balance, 2020). Open banking is the drive behind both innovation and competition in the financial industry (Cahill, n.d.). 

PSD2 is a European Directive that regulates electronic payment services and was implemented in all EEA countries in 2016 and went live in September 2019.
 

Open Banking in Denmark

In general, online banking has grown in popularity among all ages in Denmark over the past decade with the overall penetration rate increasing from 83% in 2011 to 95% in 2020 (Johnson, 2021). Therefore, out of all european countries, online banking is the most common in Denmark (Eurostat, 2018).

The Danish financial sector is one of the most digitised in the world with new initiatives evolving regularly. For example, an online log-in solution, NemID, was created in 2010 to help fight online crime targeting banks and its customers (Nielsen, 2020). The achievement of continuous digital development is attributable to good collaboration between the financial and public sectors (Nielsen, 2020).

Of all Danish citizens using the internet, 94% use the internet for online banking, which is 28% above the EU average (DESI, 2020, 10). Additionally, on integration of digital technologies, Denmark ranks 5th among EU countries (DESI, 2020, 10). Furthermore, Denmark ranks 3rd in the EU for digital public services (DESI, 2020, 12). 

Denmark has a total of63 banks and 7 mortgage banks, the largest of which include Danske Bank and Nordea (Nielsen, 2020). 

How Does Open Banking Work?

Open banking uses an API that allows financial institutions to exchange financial data, usually through a third party-developed application (Estevez, 2020). These applications are developed by up and coming FinTech companies with the mission to improve digital banking.

To access and use the open banking APIs in Denmark, you will need to acquire an account information service provider license, issued by the relevant authority. Furthermore, you will require a relevant certificate (QTSPs or eIDAS), compliant with PSD2 requirements. Alternatively, you can use an open banking platform, such as Nordigen.

References

the balance. (2020, October 11). What Open Banking Is and How It Will Affect You. https://www.thebalance.com/what-is-open-banking-and-how-will-it-affect-you-4173727

Cahill, H. (n.d.).InvoiceFair. The Evolution of Open Banking: Connectivity breeds digital competition. https://invoicefair.com/the-evolution-of-open-banking-connectivity-breeds-digital-competition-081118/

DESI. (2020). Denmark.Digital Economy and Society Index (DESI) 2020, 1-14.

Estevez, E. (2020, August 27).Open Banking. Investopedia. https://www.investopedia.com/terms/o/open-banking.asp

Eurostat. (2018, January 1).Internet banking on the rise. Eurostat. https://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20180115-1

Johnson, J. (2021, January 25).Internet banking usage in Denmark 2011-2020, by age group. Statista. https://www.statista.com/statistics/649887/internet-banking-usage-in-denmark-by-age-group/

Nielsen, F. D. (2020, December).Denmark’s Banking sector: Facts and Figures. EBF. https://www.ebf.eu/denmark/

PSD2. (n.d.). QuickPay. https://learn.quickpay.net/helpdesk/en/articles/psd2/


Banks

Here is a list of major banks providing Open Banking in Denmark

Providers

Here is a list of major open banking platforms in Denmark

Tink

Tink was founded in 2012, and has built one of Europe’s biggest screen-scraping / open banking platforms – they claim to have broad connectivity and services that create value out of the financial data. Tink offers their platform to banks, fintechs, and startups.


Nordigen

Nordigen is an authorised Account Information Service Provider. We provide free access to bank data and premium data insights, using regulated PSD2 connections.