Exclusive extracts from this 70-page-long report:
- Who are the key players?
The European retail banking industry is fairly fragmented, with banking groups usually operating in a limited number of countries. At the end of 2017, the top 10 banking groups analysed in this report held an estimated 21% of the total assets held by European banks. Universal banking groups, which conduct highly diversified operations across retail, investment and private banking—such as HSBC, BNP, Deutsche Bank, Barclays, RBS and Société Générale—stand out among leading European players. [...]
Groups analysed in this report include: Banco Santander, HSBC, BNP Paribas, Deutsche Bank, Barclays, Société Générale, Unicredit, Intesa Sanpaolo, ING Group, and Royal Bank of Scotland.
- What are the players' strategies?
As banks' traditional business models are being disrupted by digital technologies and changing customer behaviour, while traditional banking products and services are becoming increasingly commoditised, retail banks remain under pressure to focus on key markets and core activities, while redefining their business models around digital platforms and operations. ING has been among the more successful converters of this strategy: building on its historically strong retail presence in Benelux countries, the bank has pursued rapid expansion across key European markets thanks to its all-digital, no-frills, low-cost strategy that has helped it gain new customers and save costs. […]
- What are the players' key growth and profitability drivers?
European banks' profitability levels in 2017 increased to their highest levels since the global financial crisis of 2009. Larger institutions with either a strong digital-first approach (ING) or extensive international presence and more diversified operations (Santander, HSBC) have generally reported stronger average returns in recent years, whereas banks with a strong focus on their domestic markets (Deutsche Bank, RBS, Unicredit) reported significantly lower returns. [...]