Publication

Report: The New Banking Genome

European banks face four key threats, according to this report based on Longitude Research survey sponsored by Cognizant. Learn what to do about it. 

Snapshot Insights

Snapshot Insights,

The competitive landscape in the European banking market has changed significantly particularly because of recent regulation favouring new entrants. This means competition is at an all-time high for incumbent banks.

Is Europe Lagging Behind? Find out.

Threats EU incumbent banks may face include:

  • PSD2 regulatory change is altering the competitive dynamic in the banking market by mandating that incumbents share their customer data.
  • Fintechs and challenger banks are doubling down on targeting individual services of the banking value chain, threatening the incumbents’ position in these service lines.
  • Technological innovation, including blockchain, has the potential to rewrite how banking services are delivered, potentially removing banks’ involvement in some service areas.
  • The entry of big-hitting digital competitors, such as Google, Facebook and Amazon, could be a serious threat for incumbents.

Despite this, in our in-depth research with 300 senior banking leaders across the EU, only one-third of incumbents recognized the threat that the Revised Payment Services Directive (PSD2) poses to their business.

What to do then? Incumbents that embrace a new model of banking – one that focuses on cultural and digital transformation and a customer-first approach – can become resilient to this new threat landscape. This report, based on a Cognizant sponsored Longitude Research survey on threats facing the banking industry and how to adapt, offers a framework to build a successful future for incumbent banks.