Despite major efforts by the European Union to create a single financial marketplace in Western Europe, there is still a long way to go before financial institutions are able to operate in a single marketplace. According to a new study by technology consultant IDC, the continuing differences are affecting business strategies.
“Currently, only a few financial services companies can be defined as truly European players, and even they have a quite fragmented presence in each country as they try to adapt to the different customer requirements and business rules,” explains Mirko Corbetta, research analyst with IDC’s European Vertical Markets expertise center.
As a consequence, IT vendors have to understand the structural differences between the financial sectors in different markets. IDC says its “demographic indicators” can help them better understand financial services sector evolution in each country and go-to-market strategies that best suit the target market; find new business opportunities linked to the peculiarities of a specific national financial services market; leverage the competencies developed in one financial services market to offer new services in a country where financial institutions are at a different stage of evolution; and understand which financial segments are going to be more integrated, and where Europe-wide competition is more likely.
The study, Western European Financial Services Sector: Demographic Indicators (July 2003), analyzes the banking and insurance market structure in Western Europe and market activity over the last few years, examining the dynamics and cross-border integration levels in major European countries. It includes market data on France, Germany, Italy, Spain, Sweden, and the U.K.