Market Size of Challenger Banks in Europe
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 10.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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European Challenger Banks Market Analysis
The Challenger Banks Market is poised to grow at a CAGR of 10% during the forecast period. The Europe Banking Industry is similar to the US banking landscape. The Europe banking sector is dominated by large players. However, it also showcases characteristics of a market ripe for disruption through a combination of economic, regulatory & secular trends. Following the crisis, large institutions damaged their reputations and created an environment for disruptors that are supported by innovative technology and can offer competitive banking and lending services. Covid-19 had a negative impact on challenger banks. The use of challenger banks fell by around 90%. However, the pandemic has forced more people than ever to start using digital banking applications. This strengthens the future of tech-oriented challenger banks.
The origins of Challenger Banks in the UK date back to the most recent crisis, during which large institutions engaged in questionable practices and undertook risks through complex business activities, difficult to comprehend for both regulators and consumers. UK has also led the charge across EU FinTech, as it is home to the most extensive network of established Challenger Banks in Europe. The UK has one of the most established and concentrated banking industries in Europe, with large financial institutions controlling significant market share and the market is supported by traditionally high regulatory barriers to entry.
