Challenging the Competitors in European Banking

This report from Economist Impact, commissioned by Temenos, examines the competitive landscape of the European banking sector, particularly in relation to neobanks and fintech firms. It outlines how traditional banks in Europe are responding to the rise of digital-only challengers by launching their own digital subsidiaries and investing in technology to enhance customer experience. The report highlights that European banks anticipate neobanks to be their primary competitors in the next five years, with a significant focus on the payments sector. The study also discusses the impact of open banking, which has facilitated collaboration between banks and fintechs, allowing banks to offer a wider range of services. Furthermore, the report notes that many European banks are migrating to public cloud services and investing in AI and augmented reality to remain competitive. The findings are based on a global survey of 300 banking executives and interviews with industry practitioners, providing insights into the evolving strategies within the banking industry.