The paper discusses the changes that may occur in the medium term, according to the academic literature and market operators, as regards the business model of European banks in response to the main factors to emerge in recent years, such as low interest rates, tighter financial regulation, technological innovation, growing competition from non-banking intermediaries, and the effects of the pandemic.
In the medium term, banks' activities will still be affected by the changes that were already under way before the health emergency and by the consequences of the pandemic. To successfully compete, banks will likely try to fully exploit the benefits of digital innovation and the growth of the sustainable finance market. The possibility of banks to compete effectively on the market will also depend on their capacity to achieve economies of scale and scope.
