Europe’s banks have been behind the curve when it comes to digital transformation. This lack of digital savviness has allowed fintechs to disrupt niche areas of the market and attract customers away from the large incumbent banks.
“Pre-pandemic, most large banks were significantly behind a lot of fintechs and newer entrants in the banking and financial services space,” says Manu Saxena, a partner at McKinsey who advises banks and technology providers with a focus on transactions and growth strategy. “They had legacy architecture and frankly outdated processes. A lot of banks’ innovation and technology streams were also siloed and separate from the business.”
