The interest rate turnaround in recent years has enabled many banks to achieve record profits. In Europe, however, rates have fallen significantly from their peak — with further cuts expected. At the same time, European governments are responding to a weakening economy and geopolitical uncertainty with expansive fiscal policies.
Project
We provided strategic advice to a global corporate and retail bank on the divestment of several subsidiaries in other European countries. We provided comprehensive support in each of the projects, from technical due diligence and migration to exit.
In this highly dynamic environment, banks face profound changes. Falling interest rates are putting pressure on margins, while government spending programs are creating new market conditions. Stronger European integration could accelerate the long-anticipated consolidation of the banking sector — driven by economies of scale and efficiency gains. While the momentum for new regulations has slowed, Europe remains a leader in implementing ESG principles.
Technological change is forcing banks into an IT-driven transformation. Legacy systems, ongoing digitalization, and demographic shifts require the modernization of core banking platforms to remain competitive in the digital age. Institutions that lead in adopting artificial intelligence will be able to significantly reduce their cost-to-income ratios. At the same time, AI introduces new risks — especially in cybersecurity — demanding stronger protective measures.
We support banks in successfully navigating these fundamental shifts — strategically, technologically, and operationally.