Penneo is a SaaS provider originally established to support primarily the auditing industry with digital document signatures thereby replacing pen and paper with a digital solution. In October 2020, Penneo added onboarding and know-your-customer (KYC) & AML compliance to its product offering via the acquisition of CLA Reply thereby expanding its offering to facilitate upselling to existing clients and to cater for adjacent industries governed by AML regulation such as financial institutions. Penneo is present in Denmark, Sweden, Norway, Finland, Belgium and Germany.
Penneo will benefit from increasing adoption of IT automation technologies as well as continued digitalisation in the public and private sectors. Future regulatory initiatives concerning digitisation and data privacy are expected to strengthen Penneo’s position and improve its value proposition as the incentives for investing in solutions like Penneo’s continue to rise. Continued or increased focus on the climate impact of document-heavy industries’ paper waste will also benefit Penneo.
The market for Penneo’s solutions is highly competitive and some competitors have more financial strength and greater broader global distribution while their technical and marketing resources may put them in a better position to respond more swiftly and effectively to new opportunities and technologies. Larger players may begin to offer or further develop their solutions targeted at the auditing vertical potentially forcing Penneo into a price war. Lower levels of digitisation and national adoption rates of eIDs outside the Nordics may make expansion outside the Nordics more difficult.