PA financial services expert, Frode Lervik, is quoted in an article in PaymentsCompliance discussing the move by more than 100 Norwegian banks to team up to ward off fears that regulatory reforms could threaten their position in the market.
The article outlines how having previously been part of the DNB Group, Vipps has now been spun-off as a legal entity. DNB holds approximately 52 per cent of the company, while SpareBank 1 alliance holds 25 per cent. Rune Bjerke, group chief executive of DNB and incoming chairman of the board of Vipps, said the alliance will better equip the banks “to win the race against Nordic and international market participants” ahead of impending regulatory changes.
Frode says he is not concerned the move could prove anti-competitive, especially as technology giants and other rivals start to roll out payment services. But he added that the deal is pending regulatory approval so it remains to be seen whether financial regulators agree.
He says: “I think Vipps will be looking to strengthen customer offerings – I don’t think they’ll be winning by playing a protective game. It is not a long-term sustainable solution to try and shut out other players.”