Market Trends of Challenger Banks in Europe
This section covers the major market trends shaping the Challenger Banks in Europe Market according to our research experts:
Challenger Banks are Gaining Traction in Europe
Challenger banks are innovating their ways to reach customers. For instance, in 2018, an overhaul of the Payments Services Directive (PSD2) required banks to open their payments infrastructure and customer data assets allowing third parties to use them to develop payments and information services for consumers essentially PSD2 dissolved banks' monopoly on consumers financial data. This helped many players like N24, and Revolut to provide expanded service offerings and gain a customer base. Also, large banks entered partnerships with fintech players. These types of factors give challenger banks an advantage over other traditional banks to increase it's customer base.
Challenger Banks Offer Attractive Returns for Savers in Europe
Challenger Banks in Europe have this major proposition of better products at cheaper costs. Using the rapid technological adoption of customers and legacy systems of large players being insufficient to cater to their growing needs as an opportunity, new banks have come up with attractive products offered through online platforms at cheaper costs. The average interest rates offered for savings account holders of leading large banks in Europe are less as compared with challenger banks. The challenger Banks have done this by raising funds in recent year.
