Five Threats To Retail Banks

Recently Deloitte published Banking Disrupted: How technology is threatening the traditional European retail banking model. The report highlights the major challenges the industry will face in the coming years and focuses on what the future has in store for Europe's retail banks. We think that five major threats will play a big part in shaping the industry.

1. Securities markets are expanding – in the past, banks have enjoyed unrivalled access to cheap funding via customer deposits. But as European banks shrink their risk-weighted assets and their lending capacity remains constrained, companies will raise more money via capital markets, much as they already do in the US. And households are redeploying savings to market-based investments.