Overcoming the Top 5 Challenges for Nordic Banks in 2025: How NextGen Nordics Can Pave the Way

As Nordic banks strive to remain competitive and future-proof their operations, the upcoming NextGen Nordics event on April 29, 2025, at Münchenbryggeriet in Stockholm, Sweden, presents a timely opportunity to address key industry challenges. This article highlights the top five challenges facing Nordic banks and how the discussions at NextGen Nordics can help develop effective solutions.

1. Adapting to Regulatory Changes

The regulatory landscape poses significant challenges for Nordic banks, particularly with the implementation of the Digital Operational Resilience Act (DORA). This act focuses on ensuring that financial institutions can effectively withstand and respond to cyber disruptions, emphasizing the need for strong operational resilience.

During NextGen Nordics, a panel discussion titled “How can banks fortify their operational resilience in the face of DORA and its growing demands?” will provide valuable insights into strategies for compliance and best practices. Experts will share tools to help Nordic banks enhance their resilience against cyber threats and operational interruptions.

2. Managing the Shift to Instant Payments

The transition to real-time payments introduces new challenges for Nordic banks, including issues related to scalability, security, and fraud prevention. A critical component of this shift is the Verification of Payee (VoP) regulation, which ensures payments are directed to the correct recipient.

The session titled “Preparing for the Instant Payment Regulation’s Verification of Payee (VoP)” will equip banks with essential knowledge and tools to tackle these challenges. Discussion will focus on the technological and operational measures necessary for VoP compliance and the broader implications for instant payment systems.

3. Navigating the Rise of Central Bank Digital Currencies (CBDCs)

Central Bank Digital Currencies (CBDCs) promise to enhance payment systems and improve monetary policies but also pose risks of disintermediation for traditional banking systems. Nordic banks must carefully assess the benefits and potential threats associated with CBDCs.

The panel titled “Do the benefits of Central Bank Digital Currencies (CBDC) outweigh the potential risk of disintermediation?” will delve into this complex topic. Attendees will explore the economic and operational implications of CBDCs, helping banks to weigh the risks and rewards while adapting to this new technology.

4. Addressing the Growing Risk of Fraud

As the adoption of faster payment systems accelerates, the incidence of real-time fraud is on the rise. Detecting and preventing fraud in instantaneous transactions has become a significant challenge, particularly as fraud tactics evolve.

The session “Faster payments, faster fraud – how are financial institutions addressing the rising risk of fraud in real-time transactions?” will confront this issue directly. Industry experts will share insights into effective fraud detection mechanisms and security protocols to combat the increasing threat of fraud in the era of instant payments.

5. Leveraging Open Finance

The emergence of open finance brings new opportunities along with risks related to data privacy and security. The session titled “Can the Nordics lead the open finance revolution?” will examine how Nordic banks can utilize open finance to maintain competitiveness while navigating the complexities of data sharing and customer privacy.

As Nordic banks continue to innovate and adapt to a rapidly changing landscape, 2025 promises to be a transformative year for the sector. With challenges such as regulatory compliance, fraud prevention, and the opportunities presented by AI and open finance, NextGen Nordics serves as an invaluable platform for discussion and problem-solving.

By participating in the various panels and sessions, financial institutions will gain crucial insights to navigate the future of banking and uphold their leadership in the global financial ecosystem. Register now to secure your spot! Representatives from banks can attend for free, while tickets are available for software, IT, and consultancy providers to financial institutions. Don’t miss this essential event to stay ahead in the competitive banking landscape!