Embedded finance is experiencing significant growth in Europe—revenues there could surpass €100 billion by 2030. Partner Albion Murati and coauthors note that mobile became the dominant retail banking channel in the past 15 years, and the number of bank branches per capita fell 40 percent in that time. From 2019 to 2023, mobile gained ground in banking, with an increase in interactions per customer of 127 percent.
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A group of charts show the changes in customer interactions with banks over time in Europe. The bar chart shows the number of cash withdrawals per person and bank branches per 100,000 adults. The line chart shows the annual count of customer interactions per customer, broken down by channel type. The bar chart shows that cash withdrawals per person decreased from ~27 in 2008 to 24 in 2019, and bank branches per 100,000 adults decreased from about 36 in 2008 to 22 in 2019. According to the line chart, the number of interactions per customer through mobile devices increased from 77 in 2019 to 175 in 2023, an increase of 127%, while interactions per customer through call centers, branches, ATMs, and the internet decreased by 25%, 60%, 28%, and 33%, respectively, from 2019 to 2023.
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To read the article, see “Embedded finance: How banks and customer platforms are converging,” July 15, 2024.