U.S. Banks Hold Tech Lead Over EuropeU.S. Banks Hold Tech Lead Over Europe
Earlier investments in fintech are paying off.
Automation at U.S. banks is helping them outpace their European counterparts, Finastra CEO Simon Paris told CNBC. He leads a firm that works with 45 of the world's top 50 banks and has a revenue of more than $2 billion, according to the report.
The investments in automation mean better productivity and a more positive customer experience, said Paris. "You really see that [U.S. banks are] getting improvements from those technology investments they made a few years ago,” he added. “You see a big difference between the U.S. banks and the European banks, and I think that’s part of the reason why U.S. banks are at twice the level of return on equity over the Europeans."
The comments come even as European-based fintech startup N26 is readying itself for a U.S. entrance. The firm is valued at $2.7 billion and just secured $300 million in additional funding. "While European banks may be seen as slow in adopting new technology," reported CNBC, "fintech firms in the region are seeing heavy investment."
