Page 53 - FintechAtlas2019

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
53
In recent years, the region has seen massive digitalisation efforts by both leading Western banks and local players
(as well as through partnerships with dynamic providers). Moreover, challenger banks active in Western Europe are also increasingly active in the CEE markets. On top of this, 2020 should see a sharp rise in demand for digital banking services that will boost digital markets across the region (keyword corona crisis). Both traditional lenders and fintechs should be able to benefit from this. In the long term, this should be seen as positive, even if business opportunities
in the area of digital banking are likely to suffer in the short term from the deepest economic slump in the region since the global financial crisis. At all events, 2020 will test the robustness of the business models and digital services of fintechs and leading digital banks across the region.
In principle, we continue to regard the CEE markets as attractive for fintechs and for partnerships between fintechs and the (Western European) banks that are established in
the region. The market shares of 50 to 90% still enjoyed
by these Western European banks in CE/SEE facilitate the scaling of solutions (also across borders), while some leading Western CEE banks are also active in the more sophisticated EE markets and, especially, in Russia. The potential customer base for these Western CEE banks includes, in particular, the 35 to 40% of bank customers who are particularly digitally active (i.e. clearly preferring the digital channel with their bank). And in the current crisis period, not only non-lending products but also the traditional and/or state-subsidised credit products offered by established banks should also become more relevant.
CE
Digital usage penetration (2020e)*
SEE EE
Digital usage penetration (2017)*
Conventional banking penetration (2020e)*
Conventional banking penetration (2017)*
* Digital penetration: used the internet to pay bills, to shop online; sent/received digital payments (% of population 15+); conventional penetration: account, debit card ownership (% of population 15+); source: World Bank, RBI/Raiffeisen RESEARCH