Scrappy fintech firms and neobanks took the lead in using new technologies to provide better customer experiences, reach underserved markets. Now Europe’s traditional banks are fighting back.
- New research from Economist Impact finds that European banks are more likely than other regions to expect neobanks to be their biggest competitors in the next five years – 35% in Europe compared to 25% globally.
- However, payment players (36%) and technology providers (36%) continue to be top of mind, with payments being the space where European banks predict that new entrants will gain the most market share.
- European banks are emulating the way that new entrants have used technology to reach new and existing customers and support them in managing their personal finances.
- Over one in five see moving to public cloud as a strategic priority to ensure that their operations are agile and secure.