The number of FinTechs has been on the rise since. The European Fintech sector is the most valuable startup tech sector in Europe with an accumulated valuation of 123 billion € and it receives around 20% of all venture capital in Europe. The highest valuation of the FinTechs can be found among the neo banks. The largest European neo banks already have millions of customers and are now on entering the U.S. Market.
But what has happened since 2008 that enabled the quick development of new entrants into the European banking industry?
According to Davis, new regulations in the EU have created more competition by making it easier for new banks or payment institutions to obtain licences, enabling the customer to easily switch between providers and standardising systems and communication. In general, making it easier to get a product to the market.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Neo banking and Regulation in Europe
- Competition drives innovation
- Neo banks - the new innovative players
- The new innovative banks
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the emergence of neo banks in the European banking industry and analyzes the role of regulation in enabling this rapid growth. It delves into the competitive landscape and explores the factors contributing to the rise of these innovative players.
- The impact of regulation on the European banking industry
- The role of competition in driving innovation in the financial sector
- The emergence and characteristics of neo banks as innovative players
- The impact of neo banks on the traditional banking landscape
- The implications of these developments for the future of the European banking industry
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the context of the European FinTech sector, highlighting its significant growth and the prominent role of neo banks. It poses the question of what factors have enabled this rapid development.
- Neo banking and Regulation in Europe: This chapter discusses the impact of EU regulation on the emergence of neo banks. It focuses on the Payment Services Directive (PSD) and its updated version PSD II, analyzing their role in creating a competitive landscape and fostering innovation.
- Competition drives innovation: This chapter explores the link between competition and innovation in the banking sector. It examines how regulations like PSD II have created a more competitive market, leading to the development of new products and services by both traditional banks and neo banks.
- Neo banks - the new innovative players: This chapter analyzes the characteristics and key strategies of neo banks. It discusses their unique business models, their focus on technology and digital solutions, and their ability to attract customers with tailored products and services.
- The new innovative banks: This chapter delves into specific examples of successful neo banks in Europe. It examines their impact on the market, their strategies for growth, and their contribution to the overall innovation within the banking industry.
Schlüsselwörter (Keywords)
This paper focuses on the key themes of neo banks, regulation, innovation, competition, and the European banking industry. It examines the impact of regulatory frameworks, such as PSD II and MiFID II, on the development of new financial technologies and the emergence of innovative players like neo banks.
- Citation du texte
- Moritz Mey (Auteur), 2020, Innovation in the European Banking industry. Regulation enables innovative banking services, Munich, GRIN Verlag, https://www.grin.com/document/974456
