Growing a National Fintech Cluster from Bergen

Having founded Monobank – a digital consumer bank that was eventually acquired and merged with BRAbank and later on Lea bank, he brings over two decades of experience in finance, technology, and entrepreneurship.

Gjendem sat down with Invest in Bergen to talk about his new role at NCE Finance Innovation and his view of fintech in Bergen.

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Invest in Bergen: “You have been involved with a number of banks and fintech firms throughout your career. What are the biggest strengths you bring to your new position as CEO for NCE Finance Innovation?”

Bent Gjendem: “I believe it’s three things.
1) I have experience in financial services. To be specific, digital financial services. I worked at S’banken for a number of years in different positions. I was also a consultant for Deloitte and other organisations. So, I know a lot about financial services as an industry, as well as from the tech side of it.
2) I was a founder and co-founder on a number of occasions. Most notably with Monobank, now known as Lea Bank, which I pretty much started from scratch. In roughly 3-4 years, the company went from zero to NOK 4 billion in lending capital and to operating in seven countries with a staff of around 50 people. That was quite a ride!
3) My experience in establishing the cluster and being involved in that process as a board member.”

IiB: “Having been involved with the cluster’s inception in 2017, how has the cluster evolved over the years? Moreover, do you believe that the cluster has created real value for both Bergen’s fintech community and the country as a whole?

BG: “I think it has. The cluster went from its humble beginnings in Bergen to holding “Norwegian Centre for Expertise”- status from Innovation Norway in a record-breaking time. Now with nearly 100 members spread across the country, we’ve created a lot of value and see the start of the cluster as a big success. Bear in mind that we’re only five years old, and two of those were during a global pandemic. Yet, we’re still going stronger than ever.

IiB: “You’re a graduate of the Norwegian School of Economics (NHH), located here in Bergen. According to their most recent Labour Market Survey, over 90% of graduates were hired, some even before graduating. In your opinion, what does that say about the region’s skilled labour force in the finance and fintech sectors?”

BG: “I think the competence in the region is quite well-developed, especially when it comes to candidates from NHH. It’s a bit of a well-kept secret that we have a lot of competent tech people in the banking and insurance area as well. We also have a great deal of competence in consulting firms. So, I would say that there are a lot of people in Bergen with competence in the fintech arena.”

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IiB: “Among its many functions, the cluster works as both a hub and an incubator. Do you believe that these things have enabled the cluster to promote innovation and creativity among its members?”

BG: “We feel that the hub here is a great place for innovation. When we first started, both the hub and the incubator, I was curious to see whether we would be able to get enough new companies, but it started out with a bang. We’ve had success stories like Tjommi and Horde graduating from our incubator, and a bustling community in the fintech hub. That being said, we are always interested in speaking to new potential startups for the incubator, and for members to be a part of our fintech community and hub at Media City Bergen.

IiB: “In an article published by NCE Finance Innovation, you mentioned how the cluster has been exploring several key areas, such as embedded finance, anti-money laundering and sustainability. Moving forward, what initiatives will the cluster begin to contribute to these key areas?”

BG: “We have resource groups full of people with key expertise, who come together to discuss these areas. They work to establish projects that can make concrete contributions to banks and insurance companies in the region.
One example I can give is a project group involved in fraud detection related to automobile insurance. This can reach up to NOK 3 billion annually, but only a small percentage of that is detected, which is roughly NOK 100 million. So, they’ve compiled all the relevant data into a database, applied machine learning and created algorithms to try and identify fraud in these car insurance cases. The project has gone through various phases and many hurdles, but at the end of the day, it shows that collaboration between competitors can solve complex societal issues when given the opportunity to do so.
We also have a resource group here on sustainability. There’s a lot of buzz when it comes to sustainability, but a lot of banks and financial institutions don’t know how to incorporate it. They know that it’s important but have plenty of questions on how to get started. This group addresses key elements, such as taxonomy and sustainable finance.

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IiB: “In your view, how do Bergen-based and Norwegian fintechs compare with the rest of the world?”

BG: “If you were to look at Bergen in comparison to London, for example, we could probably create companies and solutions here in Bergen at 1/5 or even 1/10 of the cost it would take to build them in a place like London. My experience in talking with bankers and investors in London is that they love Norwegian initiatives because they know they’re very efficient. They love that we’re good at building products that work.”

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