Major external factors have shaken up the bank/insurance sector over the last three decades, with margins squeezed due to growing competition and strengthened regulation (Basel agreements).
The incumbents have done well to resist the online banks, by digitising, reorganising their branch networks and buying up Fintechs in high-value segments. On the other hand, the GAFAMs represent a factor of uncertainty, given their financial power, ability to innovate and brand equity.
As for the behaviour of the younger generations, despite being digital natives they still demand real interaction. Will they still want to come to branches and forge a direct relationship with their advisors? Under what circumstances?
The issue of young people also arises among employees in the finance sector, with its very high turnover of banking staff. Companies that take care of their employer brand will develop a competitive advantage and reduce losses from vacancies, recruitment processes, recruit training and adaptation time.
Evelyne Rousselet
Senior lecturer, head of the finance department at Gustave Eiffel University
Key figures
- €8,671 billion in assets held by banks, €3,018 billion held by insurance companies.
- 1st: France’s place in the European insurance market.
- 5 French banks among the 10 largest in the euro zone.
Sources : France 2020 data French Prudential Supervision and Resolution Authority, French Banking Federation
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