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Statistical dossier of the European banking sector

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The digital age has brought the financial sector kicking and screaming into the modern era. Although technology and customer participation were slow to catch on, things may finally be making headway. In December 2017, the London based NeoBank, Revolut, reportedly broke even, making it the first of its kind since challenger banks first broke onto the scene. Between 2010 and 2018, FinTech companies in Europe have seen venture capital investments of almost 92 billion U.S dollars alongside new regulations which have promised to open up competition and revolutionize the sector. With so much attention and capital being focused towards financial technology over the past years, it may come as no surprise that if we look at Europe’s brick and mortar banks in pure numbers things do not look good. The number of banks, branches and employment have all been falling as people move away from the traditional in search of something cheaper and more convenient.

As of yet, there is still a huge size difference between the high- street institutions and the digital newcomers, but for any Goliath it is always wise to look out for a David. Across the EU5 alone, 141 million individuals use online banking regularly. This report will explore key figures of the traditional banking industry, whether the banks have deleveraged since the crisis, the types of traditional banks as well as the key performance indicators (KPIs) that illustrate the true size of Europe’s largest banks. It will also look at the rise of direct banks (online only banks) as well as how some of the biggest banks are moving into an ever more digital world. The market is opening up and the game is on.

European Banking sector in numbers 2018

As of December 31, 2017, there were 6,250 banks and 182.4 thousand branches employing almost 2.74 million people across the 28 countries making up the European Union. Collectively, these banks distributed over 24.6 trillion euros in loans and took almost 22.9 trillion euros in deposits. Total assets of these banks totaled approximately 42.9 trillion and capital and reserves amounted to nearly 3.58 trillion euros.

When talking about European banking, just under 400 million individuals have a bank account, amounting to approximately 91 percent of the entire adult population as of 2017. Despite Europe’s healthy customer base, the number of bank branches and employees have seen a continuous fall over the previous years. One banking trend that has risen is the adoption of online banking by European customers which, as of 2017, sits at 61 percent.

A robust capital position for the banking sector in Europe has been strengthening since 2011. Despite the good news for Europe’s banks in terms of strength, the fall of branch banking continues to weigh heavily on the sector. It could be hypothesized that Europe’s new-found stability alongside the rise of online banking has come at the cost of employees and local branches.

A report by Statista

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