No matter which direction they look, incumbent banks in the European Union (EU) are under extreme pressure. If it’s not the digital-first banks and fintechs creating new consumer choices on how, where and when they bank, it’s new open-banking regulations lowering the barriers to entry. If it’s not Brexit causing mass financial confusion, it’s blockchain roiling the waves of tech disruption. And lurking in the background is the threat of incursion by the digital giants Google and Amazon.
To better understand these threats, as well as how European banks should respond, Cognizant’s Center for the Future of Work, in partnership with Longitude Research, spoke to more than 300 senior leaders from European financial services organizations. These entities included incumbent European banks (organizations established 10 or more years ago); challenger banks (established within the last 10 years) and fintech firms (businesses providing financial services using digital technology).