The emerging challenge for European retail banks
European banks face significant risks in the retail payments market, as emerging fintech players and regulatory reforms pose new challenges. In this report, we explore the main scenarios which are likely to emerge and the strategies banks could follow to respond to market changes.
New financial technology, or “fintech” players have entered the payments market, with the aim of offering a simpler user experience.
In contrast, banks have lagged behind, accounting for just 19 per cent of the $10 billion spent on fintech last year. They now have important questions to answer about how much they should invest in payments innovation, and whether they should enter partnerships with rivals or non-bank challengers.
Through a series of interviews with 24 industry experts, our Payments Disrupted report predicts a radical change in the status quo.