Challenger banks, new payments systems, and digital technology; as well as proposed market infrastructure in Europe are disrupting the market.
A looming question for managers at large financial institutions is where is the next disruptor or challenger brand going to come from? With change and digital innovation everywhere, firms are faced with the constant challenge of where to invest attention, time and resources. In the wake of the financial crisis many retail banks are still focused on remediation and reputation building, the new arrivals are perceived as a breath of fresh air, free from scandal (for now) and simpler to use. These innovations have therefore been consumer-led and are largely still unregulated, but for how long?
Consumer led change is not the only big play in the arena. In Europe, the beginnings of a new capital markets formation are beginning to take shape under Capital Markets Union (CMU). The financial crisis showed that Europe’s small and medium-sized companies (SMEs) rely heavily on banks for funding and that too little focus was on funding from capital markets. CMU is the European Commission’s response to the problem. The Commission’s main focus is to improve access to finance for businesses, particularly SME’s, and aims to achieve this goal by reducing the fragmentation that currently exists in financial markets.
The articles on this page focus on the ever-changing dynamics that are shaping and re-shaping the financial services industry.