Consolidation and the EU banking sector

Author: Olly Jackson | Published: 16 Jul 2018

Challenger lenders are driving consolidation in the European banking sector

Methodology
IFLR publishes its monthly poll question on iflr.com and Linkedin group page iflr.com/LinkedIn. Throughout the month, IFLR’s editorial team gather the responses and interview selected respondents. The next poll is online now

Banks are facing more challenges than ever before. The rise of digital and challenger banks, spurred on by the updated Payment Services Directive and the potential entry of big tech conglomerates into the market are causing incumbents to rethink strategies to react to the growing threats. One solution could be to merge with the competition to take on the newcomers together, and many are taking up – or at least considering – this option.

The number of banks in Europe has been steadily declining from the 8,525 EU-based credit institutions in 2008 to 6,660 in 2016. Bank mergers, such as that of Spain's Bankia and...