Although open banking is now officially underway in the EU, its impact will be limited in the short term. Mainstream banks will adopt a cautious approach at first, focusing on compliance rather than taking advantage of the new opportunities. Consumer take-up will be gradual, limited by lack of awareness and resistance to sharing data.

Regulators around the world are implementing new strategies to cater to the changing financial services landscape – particularly the growing influence of fintechs. Authorities will increasingly employ sandboxes and streamline their licensing procedures in order to create a more favorable environment for fintechs, while still maintaining sufficient safeguards.  

Banks will progress with AI implementations in 2018, with back-office integrations such as anti-money laundering and fraud detection proving the most fruitful in terms of increasing efficiency and cutting operating costs.
Providers will continue to cut branches, with networks in Spain and France having the most overcapacity. Surviving branches will be refocused on high-value interactions, such as the provision of advice. Nevertheless, branches will remain a key acquisition channel for the foreseeable future.