Solve complex requirements through agility
Due to constantly new regulatory requirements such as Basel III, PSD II and MiFID II, there are costs on the one hand and on the other hand, there are shifts in the financing structure on the liabilities side. At the same time, the low interest rate policy of the European Central Bank has a negative impact on income on the assets side.
Due to the upheaval in user requirements in the financial world and generational change, large financial institutions quickly miss the boat due to slow reaction times and lose sight of customer needs. Companies like N26 manage their daily business without a single branch and are gradually taking market share away from the established banks.
The ongoing digitalisation and willingness to innovate on the part of customers means that established companies in the financial industry are looking to cooperate with Fintechs in order to put them on an equal footing. In this context, ever stronger synergy effects are crystallising among the cooperating parties through the establishment of banks’ own start-up hubs, which promote digitisation and innovation.
Due to the technological developments of recent years, block chain technology and big data analyses offer new potentials for structured and secure working environments, as well as the concrete analysis of user needs.
Interest Rate Policy
Challenges of the Finance Industry