Today’s banking environment is very different from what it was even a decade ago. Traditional, longstanding financial institutions operate within a landscape which now includes a rising class of online-first, challenger banks. The new entrants are growing rapidly, fueled by the rise of digital and cloud infrastructure, and their ability to provide innovative online solutions that prioritize efficiency for their demanding clients. This trend points to a future where the profit margins of traditional banking models can be attacked by specialist digital Challengers, EMIs (Electronic Money Institutions), fintechs and big tech players, who are leveraging the help of elastic, componentized cloud-native solutions that enable scale and operational efficiency. To keep pace with these tech-forward entrants, a growing number of traditional banks are looking to embrace the cloud, to help them become more flexible, agile and capable of constant innovation.
According to last year’s Global System for Mobile Communications (GSMA) Report – The Mobile Economy 2019, between 2018 and 2025 the number of unique mobile subscribers across Europe will rise from 467m to 481m people. Nearly 80% of mobile subscribers also subscribe to mobile internet and this is forecast to reach 5.8 bn people by 2025. By 2023, mobile’s contribution to the European economy is estimated to reach €720bn as countries benefit more and more from the increased uptake of mobile services and the associated improvements in productivity and efficiency. This is especially important now that banks’ performance in the digital space is measured against every online experience, not just their direct competitors. The far-reaching adoption of smart devices in Europe goes hand in hand with the public demand for digital banking services. This is pushing financial services in Europe to move away from branch only services. This was most recently demonstrated by the global pandemic of COVID-19, which led customers to stay away from branches as part of the global lockdowns.
The far-reaching adoption of smart devices in Europe goes hand in hand with the public demand for digital banking services. This is pushing financial services in Europe to move away from branch only services. Most recently emphasized by the global health crisis COVID-19, which led customers to stay away from branches as part of the lockdowns all around the world.