The impact of neo-banks on the French banking sector: How has the emergence of FinTech changed the banking market in France?

Abstract

Despite the difficult years after the financial crisis of 2008, the banking sector remains important for France, and is even widely recognised in Europe, since 5 out of the top 10 European banks are French1 . It is the largest employer (366,200 employees, or 2% of private employment in 2018), and recruits 42,200 people every year. This sector also contributes to 2.1% (INSEE) of the total added value in France. In addition, the bank supports us on a daily basis, according to the Microfinance Observatory 99% of French people have a bank account. Therefore, no less than 22 billion payment transactions are carried out each year in France (ECB). However, since this same financial crisis of 2008, the banking world has not ceased to be impacted by restrictive and costly measures. This has led to a growth in the competitive field, leaving room for new players with ever easier and cheaper access to banking products for individuals.