European banks call neobanks their biggest competitors in the next five years. FinTech Insider writes about this with a link to the Economist Impact study.
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The survey shows that European banks are fighting competition from platform players, non-banking institutions and payment providers by actively investing in fintech startups and their own digital banks.
It turned out that about half of European banks (43%) are investing in fintech -startups, and a third (36%) are creating their own digital bank or fintech company from scratch.
European banks are migrating core banking systems to the public cloud and SaaS in greater numbers than their counterparts in other regions. A fifth (21%) of European banks view cloud technology as a strategic priority, ensuring the flexibility and security of their operations to compete with nimble competitors.
AI is also a key part of their technology investment strategy, in particular , to improve customer experience and support digital marketing. Three-quarters (75%) of European bankers believe that generative AI will have a significant impact on the banking sector.
The report shows that European banks tend to view neobanks as their companies' biggest competitors in the next five years, compared to other regions . However, payment market players and technology providers continue to remain in the spotlight, as European banks predict that new players will gain the largest market share in the payments sector.
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