Nice analysis! Whilst Europe’s bank owned acquirers still have a reasonable share of the volumes, there is an opportunity to better integrate acquiring into their customer facing propositions.
Often the collaboration between the internal parts of a bank are quite limited as acquiring has historically been seen as less glamorous than other elements of banking especially if a bank has a large corporate or IB arm. However acquiring offers steady recurring revenues and if there is no delayed shipment or delay in provisioning services then there is no RWA allocation.
In short banks have a good opportunity to maintain market share but they will need to consider integration of their offerings more as neo-banks are definitely thinking in this way and younger consumers and business owners don’t mind so much whether they use a Revolut or a Barclays.
Nice analysis! Whilst Europe’s bank owned acquirers still have a reasonable share of the volumes, there is an opportunity to better integrate acquiring into their customer facing propositions.
Often the collaboration between the internal parts of a bank are quite limited as acquiring has historically been seen as less glamorous than other elements of banking especially if a bank has a large corporate or IB arm. However acquiring offers steady recurring revenues and if there is no delayed shipment or delay in provisioning services then there is no RWA allocation.
In short banks have a good opportunity to maintain market share but they will need to consider integration of their offerings more as neo-banks are definitely thinking in this way and younger consumers and business owners don’t mind so much whether they use a Revolut or a Barclays.