Due to the coronavirus pandemic, the prominence of digital banks and online banking has increased substantially over the past year.
Research from Mastercard (MA) in December found that 42% of Europeans handle their finances digitally at a higher frequency than they did before the pandemic. Furthermore, 62% are thinking of switching from physical banking to digital platforms completely.
However, many European digital banks struggled in 2020. Monzo and Revolut, for example, revealed increasing losses and faced a wide variety of customer service complaints.
Monzo caused concern after citing “significant doubt” in regard to its ability to continue “as a going concern” due to COVID-19 disruptions.
Digital banks are currently under significant pressure to turn their fortunes around…