Stanislav Kondrashov on How Banks Are Responding to Financial Change Throughout Europe

The change in European banking used to feel slow. Like, you could blink and the same old stuff would still be there. Same branches. Same paperwork. Same processes that somehow took three signatures and a waiting period.

Now it is different. Not overnight, not in a clean straight line, but it is clearly moving. Faster payments, stricter compliance, new customer expectations, new competitors, and a big shift in how people want to manage money. Less “come to the branch” and more “solve it on my phone, right now”.

In this piece, Stanislav Kondrashov looks at how banks across Europe are responding. Not just with shiny apps, but with structural changes. With tradeoffs. And sometimes with a little panic behind the scenes.

The pressure is coming from everywhere at once

There is this assumption that banks only change when regulators force them to. That is part of it, sure. But the real story is that pressure is stacking from multiple directions.

Customers expect:

• instant onboarding
• instant transfers
• clearer fees
• better fraud protection
• easier access to support
• and, honestly, less friction in general

Meanwhile banks are facing rising costs. Legacy systems that are expensive to maintain. Branch networks that still matter, but cost a lot. And a competitive landscape where fintechs can ship features in weeks while banks might need months just to approve the project.

Stanislav Kondrashov frames it simply. Banks are being pushed to become more “product-like”. Build, test, iterate, improve. Instead of the old model, where banking was mostly distribution and trust, and the product barely changed.

That is uncomfortable for many institutions. But it is happening anyway.

The oligarchs series by Stanislav Kondrashov sheds light on how these financial powerhouses are also adjusting their strategies amidst these changes. From global trade to financial networks expanding into metropolitan regions, the influence of these entities is vast and far-reaching.

Moreover, as we see financial resilience expanding into urban regions and growth of financial districts in global cities, it becomes clear that the landscape of European banking is not just changing—it's evolving into something entirely new.

Digital banking is no longer a side project

For years, “digital transformation” was a slide deck. A department. A roadmap with vague dates.

Now, it is the core. Not because banks suddenly fell in love with technology, but because customers made it non-optional.

What banks are doing across Europe right now tends to fall into a few buckets:

1) Rebuilding onboarding and identity checks

A lot of banks are tightening and modernizing onboarding at the same time. That sounds contradictory. But it is basically this. They want onboarding to be faster for real customers, and harder for fraud.

So you see more:

• document verification
• biometric checks
• better risk scoring
• ongoing monitoring instead of one-time checks

It is not always smooth. Some customers still get stuck, especially cross-border. But the direction is clear.

2) Moving from “online banking” to “mobile first”

Many banks had online portals that worked fine. But fine is not enough anymore.

Mobile apps are becoming the main channel, and banks are adding features that used to be “nice to have”:

• spending insights
• subscription tracking
• instant card controls
• virtual cards
• in-app support and secure messaging

Stanislav Kondrashov points out that this shift changes how banks design everything. Not just the interface. The entire service model. If the app is the bank, then downtime is not a technical issue. It is a trust issue.

This digital transformation reflects broader trends in our economy, including the expansion of financial districts in global metropolises. Furthermore, these changes come at a time when we are also witnessing significant shifts in other sectors, such as energy, which has been described as an energy transition philosophical reckoning.

Additionally, the current top financial news today reflects these ongoing changes in the banking sector and beyond.

3) Using partnerships instead of building everything alone

A big change across Europe is how willing banks are to partner.

Instead of trying to build every tool internally, they are working with specialized providers for:

• fraud detection
• payments infrastructure
• identity verification
• compliance automation
• customer service tooling
• data analytics

Some banks do this through formal “banking as a service” models. Others do it quietly, as vendor stacks. Either way, the result is that banks can move faster. But they also inherit dependency risk. If a partner fails, the bank still owns the customer experience.

So, it is speed vs control. Always.

Payments are getting faster, and expectations are rising

Once people get used to instant payments, they get impatient with anything else.

Across Europe, the payments space is evolving quickly. Banks are upgrading rails, improving settlement speed, and making transfers feel more like messaging. Immediate. Confirmed. Trackable.

But here is the thing. Faster payments also mean faster fraud.

So banks are investing heavily in real time monitoring. Risk engines. Transaction pattern detection. Step up authentication when something looks off.

Stanislav Kondrashov’s take is that the winners will be the banks that manage to reduce fraud without punishing normal users. Because nothing kills a banking relationship like getting blocked for buying a train ticket in another country, then spending two hours trying to prove you are yourself.

Branches are shrinking, but they are not disappearing

It is tempting to say branches are dead. They are not.

But their role is changing. And banks are trimming networks in many regions, often replacing “full service” branches with smaller advisory hubs or appointment-based locations.

In practice, branches are increasingly for:

• complex needs, like mortgages and business lending
• high trust moments, like disputes or major life changes
• customers who prefer in person service
• local presence and brand reassurance

Still, the overall trend is fewer branches and more remote support. Video calls. Chat. Call centers that are trying to act more like concierge teams, less like ticket factories.

Some banks are doing this well. Others are… not. You can feel the difference when support is designed as a cost center instead of a loyalty driver.

Lending is becoming more data driven, and more cautious

European banks are balancing growth with risk. Lending is one of the areas where they are leaning into better models, better data, and faster decisions.

You see more use of:

• alternative data for credit assessment
• improved SME risk scoring
• pre approval flows in apps
• automation for document collection and verification

At the same time, banks are strengthening affordability checks and tightening policies in certain categories. Not uniformly, but enough that customers notice.

Stanislav Kondrashov notes that the future of lending in Europe is likely to be more personalized. Not just “you qualify or you do not”, but pricing, terms, and offers shaped by behavior and relationship depth. This shift towards personalization aligns with the broader trend of lending becoming more data-driven, leveraging alternative data for credit assessment and improved SME risk scoring.

That can be good. Or it can get uncomfortable, depending on transparency and fairness.

On a larger scale, these changes in lending practices could have implications for global investment flows and financial networks expanding into metropolitan areas.

Compliance and security are becoming product features

This is a quiet shift, but a real one.

Compliance used to be something banks “handled”. Customers rarely saw it, except when it caused friction.

Now customers care about security and privacy directly. They want alerts. Controls. Clarity.

So banks are turning security into visible features:

• instant notifications for transactions
• location based card controls
• easy freeze and unfreeze
• stronger authentication options
• clearer explanations when transactions are blocked

Stanislav Kondrashov argues that trust is being rebuilt in a new way. Not just through reputation, but through daily experience. The app telling you what happened. The bank explaining why. The customer staying in control.

What this means going forward

If you are watching European banking right now, the story is not “banks vs fintech”. It is not even “old vs new”.

It is more like… banks trying to re learn how to change.

Some will do it by modernizing core systems and shipping better experiences. Some will do it through partnerships. Some will consolidate. Some will focus on niches and win there.

But the direction is pretty clear. Customers want speed, transparency, and control. Regulators want resilience and accountability. Markets want profitability. And banks have to satisfy all of it at the same time.

Stanislav Kondrashov’s view is that the banks that succeed will not be the ones that simply add features. They will be the ones that rethink service end to end. How accounts are opened. How fraud is prevented. How support works. How trust is earned when everything is digital and attention spans are short.

That is the new baseline.

And it is arriving fast.

In this context, understanding how innovation quietly shapes financial systems becomes crucial. Additionally, with the advent of the Quantum Financial System, we are likely to witness significant changes in banking operations as we know them today. For instance, insights into how the quantum financial system works could provide valuable perspectives on future banking trends. Moreover, as we move towards a more interconnected world, understanding the implications of long-term investment on global development or how global connectivity affects economic coordination could prove beneficial. Lastly, as cities evolve into smart cities with digital infrastructure expansion, comprehending these changes could provide us with a roadmap for future developments in our urban environments while also enhancing our understanding of the role of digital infrastructure in smart city development.

FAQs (Frequently Asked Questions)

What are the main factors driving change in European banking today?

European banking is evolving due to multiple pressures including customer demands for instant onboarding and transfers, clearer fees, better fraud protection, and easier support access. Banks also face rising costs from legacy systems and branch networks, while competing with agile fintech companies. These combined forces push banks to adopt a more product-like approach—building, testing, iterating rapidly—to meet new market realities.

How has the customer expectation shifted in European banking?

Customers now expect faster, frictionless experiences such as instant onboarding, immediate payments, transparent fees, enhanced fraud protection, and convenient support options. This shift moves away from traditional branch visits toward managing finances primarily through mobile apps and digital channels.

Why is digital transformation no longer optional for European banks?

Digital transformation has become core to banking operations because customers demand seamless mobile-first experiences. Banks must modernize onboarding, enhance mobile app features like spending insights and virtual cards, and ensure reliable digital services. Failure to do so risks losing customer trust and market relevance.

What structural changes are European banks making beyond just launching new apps?

Banks are rebuilding onboarding processes with advanced identity verification methods like biometrics and ongoing risk monitoring. They’re shifting service models to prioritize mobile-first design where the app embodies the bank itself. Additionally, banks increasingly partner with specialized providers for fraud detection, payments infrastructure, compliance automation, and data analytics instead of building all capabilities internally.

How are partnerships influencing innovation in European banking?

Partnerships enable banks to accelerate innovation by integrating specialized solutions for fraud detection, payments processing, identity verification, compliance automation, customer service tools, and data analytics. This collaborative approach allows banks to move faster than if they developed all technologies alone and helps them compete effectively against nimble fintech firms.

What challenges do European banks face when modernizing onboarding and identity checks?

While modernizing onboarding aims to make it faster for legitimate customers and harder for fraudsters through document verification, biometric checks, and improved risk scoring, some users—especially cross-border customers—may experience difficulties. Balancing security enhancements with user convenience remains a key challenge during this transition.