Innovation in the European Banking industry. Regulation enables innovative banking services

Research Paper (undergraduate) from the year 2020 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, Hong Kong Baptist Universitiy, language: English, abstract: The number of FinTechs has been on the rise since. The European Fintech sector is the most valuable startup tech sector in Europe with an accumulated valuation of 123 billion ¿ and it receives around 20% of all venture capital in Europe. The highest valuation of the FinTechs can be found among the neo banks. The largest European neo banks already have millions of customers and are now on entering the U.S. Market. But what has happened since 2008 that enabled the quick development of new entrants into the European banking industry? According to Davis, new regulations in the EU have created more competition by making it easier for new banks or payment institutions to obtain licences, enabling the customer to easily switch between providers and standardising systems and communication. In general, making it easier to get a product to the market.