In recent years, “third players” whose main business was not the financial sector, both internationally and domestically, have entered the product and service sectors, which were the exclusive prerogative of banks seeking to capture a significant market share. For their part, banks are expanding or planning to expand, in anticipation of an institutional framework, in operations and services that are not strictly banking.

How did we celebrate the new year, where are we today? In what market sectors at the international level are third-party players gaining market share in the broader financial sector? What are the banks planning?

In recent years, there has been a trend, mainly from large technology companies (Amazon, Google, Apple, etc.), as well as from several fintech companies, to expand their activities by providing banking products. They mainly focus on products that customers prefer to use through digital channels, namely payment and credit solutions, creating e-wallets for their customers, thereby threatening the operation and profitability of banks. Nikos Christodoulou reports to K.Managing Partner of Deloitte Advisory Services.

The big advantage of these companies is that the users are in a friendly environment that appreciates every customer, making them feel unique through a great experience. This trend, according to Deloitte research, is more pronounced among the younger generation who no longer consider it necessary to work with a bank to perform their daily tasks, and especially among generation Z and millennials at a rate of more than 60% and 75%. % respectively are likely to use Fintechs for this purpose. Markets such as the United States of America, as well as European Union countries such as Portugal and Spain, are showing a significant increase in the availability of such products, a phenomenon that has been dynamic in the Greek market in recent years. Deloitte’s Digital Banking Maturity 2022 study reveals that digital champions in banking are currently investing in providing services and products that go beyond traditional banking practices. From simple ticketing and rewards programs that provide discounts on products and services, to e-commerce and the purchase of luxury items such as jewelry and watches, as well as various products and services in the automotive and real estate sectors. A key feature of banking expansion in this direction is the creation of ecosystems by banks, a trend that is constantly increasing where fertile ground is created by the rules imposed by the local authorities of each country. In the European Union, Poland, Italy, Belgium and Portugal together have over 25% of registered ecosystems and are the same countries that show the greatest diversity of non-banking services. In addition, it seems that the creation of ecosystems is also a kind of protection against the threat of fintechs, although there are opinions that this trend may turn out to be a Trojan horse for the banking system.

But apart from ecosystems and the range of products and services provided by banks and third parties, market shares will be determined by the quality of service provided by human resources.

As Eurobank Deputy Managing Director Stavros Ioannou pointed out, everything ultimately depends on the person and how he handles situations, with clients and how he uses data. Everything can be copied in a short period of time, except for the quality of the people that each organization has, says Mr. Ioannou, emphasizing the importance of quality service in general.