Denmark's banks, insurers, and pension funds could significantly reduce their reliance on major US technology companies within five years, according to the Dutch Central Bank (DNB).
DNB board member Steven Maijoor said that achieving this goal would require financial institutions to invest more, collaborate better, and adapt regulations for processes such as public procurement, broadcaster NOS reported on Tuesday.
The central bank has previously urged institutions to reduce dependence on US tech companies for systems, data storage, and digital security.
Maijoor stressed that the need has only increased this year due to a "harsh political and macroeconomic climate" globally.
"A year ago, we wouldn't have imagined that a NATO member state would threaten to invade another and threaten other member states with high trade tariffs if they didn't support this," Maijoor said, referring to US President Donald Trump's interest in Denmark's Arctic territory of Greenland.
He acknowledged that European alternatives for digital services provided by companies like Microsoft, Amazon, and IBM are limited.
"You'll retain some degree of dependency in the medium term. But it's possible to make significant strides in five years to achieve that independence in critical processes for banks, insurers, and pension funds," Maijoor said.
He added that current rules for contracts and procurement may unintentionally favor non-European companies. "Sovereignty plays no role. That, of course, also makes it very difficult for European providers to develop and grow."
Last week, Rabobank, ING, and ABN Amro told NOS that they are exploring European alternatives to US tech giants with other major European banks.
DNB said it would support such initiatives, including through regulatory adjustments and flexible contracts that would allow financial institutions to switch more easily if European options become available.
