National financial systems face various challenges that globalization presents them and that, in turn, generates great business opportunities.
Although the idea of creating cross-border financial institutions, through mergers that allow cost savings and therefore improved profits (given the dificulty of improving income in the current situation of low interest rates), continues to be one of the objectives, the current system within the European Union through Directives that must be implemented in each member country slows down, when it does not prevent, this possibility.
Faced with this dilemma, the digitization of institutions can be the solution since it can allow a German client, for instance, to apply for a loan or make a deposit with a Spanish institution, without having to be physically in Spain. Although this clashes now with the “nationalist” mentality that still prevails in the different countries and even with the existing regulation in the different countries.
This last aspect, the online options offered by each institution, would be a differentiation and therefore a competitive advantage, to which future customers already closely linked to the “new technologies” will put in value.
