Traditional banks on exhalation due to the expansion of unpublished

Traditional European banks are overwhelming times in the context of further expansion of unpublished, according to a report of the Strategic Consultation Department at the Global Accounting Company PWC.

Analysts cite two major challenges, an increasingly weaker incentive than higher interest rates and a more pronounced pressure of rivals that are exclusively digital such as neoban, modern alternatives to classic banks that usually do not have physical branches.

The study focused solely on banking business with citizens.

In 2024, the profit of European banks increased by an additional four percent, mainly due to higher interest rates. However, at the same time, their costs increased, by three percent, so analysts say that the momentum guided by interest is nearing its end.

Digital competitors without physical branches, meanwhile, continue to spread.

Some unpublished and financial and technological companies have become big international players. One of the examples is the Swedish company Klarna, which has a license to provide banking services and now serve 93 million users in 26 countries.

Strategy & expects that the biggest non -kiss will continue to grow and increase pressure on classic banks.

Still, traditional banks remain more profitable, an analysis showed. Last year, the most successful neoban earned 208 euros per client, compared to 668 euros per client in German banks in a segment of business with citizens.