Expansion in European banking

Consumers are benefiting from the greatest expansion ever of the European retail banking sector. Cross-border mergers, acquisitions, alliances and new start-ups have become the industry norm, said market researcher Datamonitor.

The introduction of the euro and a need to cut operational costs are behind this trend.

Competition in national markets has driven banks to look abroad and cut costs through association with foreign banks. The Internet is the main vehicle of expansion as it allows a low-cost alternative to a physical presence abroad.