Money Makers Mentor

Consolidation Looms Over Europe’s Digital Banks After a Tumultuous 2020

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…

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