European Banking Trend Radar
Why is trend monitoring essential for banks?
The financial industry is at a pivotal moment: global shifts, technological innovation, and economic dynamics are creating new opportunities for banks to secure their future. At the same time, this environment demands a high degree of adaptability. Those who want to thrive amid growing uncertainty and profound transformation must identify trends early and leverage them strategically. In the European banking sector – facing structural challenges – systematic trend monitoring is becoming a critical success factor. Discover the key trends and drivers shaping the European banking market in our “European Banking Trend Radar”.
See here our next Banking Trend Webcasts
Read here the German Version
To remain competitive, unlock new revenue streams, and increase operational efficiency, banks must identify relevant trends early and systematically integrate them intotheir strategic agenda.
Targeted monitoring of developments helps anticipate innovations and better understand customer needs.
According to MaRisk AT 4.2 (1), banks are also required to monitor and consider external influencing factors such as market developments, competitive landscape, regulatory framework, environmental changes, and the transition to a sustainable economy when defining and adjusting their business strategy.1
To support banks in mastering this complex challenge, Deloitte has developed the “European Banking Trend Radar.” This is a structured approach for systematically identifying, assessing, and monitoring relevant trends in the banking sector. The Banking Trend Radar provides decision-makers with a solid foundation for setting strategic priorities, meeting regulatory requirements, and strengthening their long-term position in the global competition for market share.
The pace of change: Why does trend monitoring matter today more than ever?
Recent global developments clearly show how rapidly technology, customer behavior and needs, as well as economic and political conditions can change. Banks are under increasing pressure to adapt quickly and flexibly to new realities.
In recent years, customer expectations have been shaped by:
- the growing crypto business
- advances in GenAI technology
- a heightened awareness of corporate responsibility (ESG)
- complex regulatory changes
Given these diverse influences, a forward-looking and structured approach to trend monitoring is essential. Trend monitoring becomes a strategic compass for banks—helping them identify opportunities early, anticipate risks, and allocate resources to the critical topics of the future. This is a fundamental prerequisite for achieving sustainable growth and long-term success.
Systematic trend monitoring
Back in 2021, Deloitte established a structured process for observing and evaluating trends in banking. Since then, we have continuously monitored all relevant developments shaping the banking market—with the goal of providing guidance to market participants and supporting strategic decision-making.
The process consists of three methodologically connected steps:
1. Trend identification
Detecting relevant trends using Deloitte’s internal AI tools and a broad network of experts
2. Trend evaluation
Assessing identified trends by an interdisciplinary group of specialists based on impact and expected market penetration
3. Trend Radar visualization
Presenting trends across three action dimensions:
- Watch
- Prepare
- Act
This process not only ensures a comprehensive and ongoing overview of current market dynamics. It also serves as a roadmap for banks to define strategic priorities – laying the foundation for proactive and effective action in global competition.
Trend categorization
The identified trends are divided into macro trends (long-term developments) and micro trends (short-term developments and concrete use cases that illustrate the macro trend). These are further grouped into six key areas:
Change drivers in the banking market
1. Customers
Changing expectations and behaviors shaped by social and technological developments
2. ESG (Environmental, Social, Governance)
Increasing demands from investors and regulators for sustainable practices – non-compliance poses reputational risks
3. Regulation and politics
Continuous adaptation to new regulations often presents strategic challenges for banks.
4. Economy and financial markets
Economic and financial market factors determine economic performance and directly impact businesses.
5. Technology
GenAI, Blockchain, and Cybersecurity are transforming digital infrastructure and require new architectural concepts.
6. Corporate organization
Structural adjustments, data-driven decisions, and digital customer experiences are becoming mandatory.
Illustrative Representation of the European Banking Trend Radar
“Have we sparked your interest? Let’s talk. With the Deloitte European Banking Trend Radar, we can also analyse how individual trends or macro trends might impact your bank’s business model. We would be delighted to work with you to conduct tailored analyses for your organization.”
Archive
Publication: Technology and Company Organisation Perspectives
The digital transformation of banking is far from over. New technologies continue to unlock innovation potential. Digital payments are more popular than ever and evolving at a rapid pace. At the same time, cloud adoption is driving a major transformation of banks’ digital processes. Organizational structures must also adapt to this technological progress. The growing threat of cyberattacks calls for a new, holistic approach to security. Changes at the organizational level are equally necessary – to deliver an improved banking experience for customers and to benefit from a banking ecosystem strategy. You’ll find a detailed analysis of all technology and organizational trends in this edition.
Edition #3: Technology and Company Organisation Perspectives
Publication: Trends in ESG, Regulatory & Political, and Economics & Financial Markets Perspectives
The “green pressure” on banks is growing. Investors and regulators increasingly expect banks to contribute to a more sustainable society. To expose or prevent non-sustainable practices, new rules are continuously being developed and implemented. This evolving regulatory environment is reshaping the industry and presenting banks with new challenges. At the same time, the market landscape is changing through the implementation of the Capital Markets Union, intensified location-based competition, and the rise of digital currencies. Discover which additional trends will drive significant change in the near future in the second edition of the European Banking Trend Radar.
Edition #2 ESG, Regulatory & Political, and Economics & Financial Markets Perspectives
Publication: The Client Perspective
Changing customer needs is undoubtedly one of the most important drivers of change in banking. That is why the first edition of our European Banking Trend Radar article series focuses on the customer perspective. Banks are increasingly confronted with evolving customer expectations and behaviors, shaped by societal change. In addition, consumer preferences for everyday banking are shifting due to growing digital and technological affinity. This creates new standards for financial service providers – because customer centricity can be a key differentiator in a competitive market. Banks should therefore do everything they can to deliver the best possible customer experience.
1German Federal Financial Supervisory Authority (BaFin, 2023): BaFin-Circular 06/2023 (BA) – Minimum Requirements for Risk Management (MaRisk).
