BNR official warns giant companies will enter the banking market

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Banks need to revise their attitudes towards the customers and to strengthen their online presence, as competition will get fiercer in the next few years, once the giant companies enter this market, a move that will produce real earthquakes, says Eugen Rădulescu, Director of the Financial Stability Department with the National Bank of Romania (BNR).

“We have a growing non-banking competition. The business plans of financial institutions need to take this into account. Cost efficiencies need to be improved, because there is great pressure on profitability. Strategies need to be reviewed not only for products and services, but also for interaction with the customers, with a particular emphasis on the online environment where steps have been done, but it seems there is still room,” Rădulescu said during the Financial Market Forum on Wednesday.

He stressed that competition will not only come from inside the financial system but also from outside, from new fintech companies and from other companies that have not been connected so far with this kind of activity, ziare.com informs.

“I do not want to point to names, because I do not want to carry out free propaganda, but we have global giant companies who are preparing to enter the banking market and, from the information I have, will come with products that will create real earthquakes. The financial system must get ready for it,” Radulescu warned.

 

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