We need your answers in order to transpose PSD2 quickly and efficiently; we also need your active involvement in order to build the best possible RegTech. 2  2. What are the challenges for the French financial industry? Innovation does not just concern new entrants, of course. For banks as well as insurers, the digital revolution is disrupting traditional customer relationship models. One figure is particularly revealing: the level of footfall in high street bank branches. In 2007, 62% of French people visited their branch several times a month. In 2016, the figure had fallen to just a third of that: 20% – and to as low as 13% for the 18-34 age group.1 Customer journeys are becoming increasingly digitalised: France currently has the highest rate of usage among large European countries for internet banking services (69% of customers).2 But, beyond customer relationships, financial companies need to take a more comprehensive approach if they are to succeed in the digital transition - placing innovation at the heart of their strategic management, as well as rethinking their business models. These are difficult choices that naturally need to be taken by the companies themselves; the answers are not easy or uniform, but I would like to share with you a few avenues for thought.
For all actors in the financial industry, including for the Banque de France and the ACPR, the digital revolution is creating challenges but also incredible opportunities that are just waiting to be seized, whether by FinTechs themselves, by the entire financial system – banks and insurers – or by the French and European economy as a whole. 1  1. What are the challenges for FinTechs? It’s hard to imagine how we would get by today without cash-gifting sites to fund events, aggregators to draw together our different bank accounts, or peer-to-peer payments to split restaurant bills or rents for flat-shares. Steve Jobs coined the well-known mantra: “simplicity is the ultimate sophistication”, and I think all of these innovations have managed to offer a simple, often cheaper solution to new user habits and needs. They combine cutting-edge technology with user-friendly interfaces. And, in many cases, they’ve been developed by nimble start-ups that are in tune with the market and have the freedom to think outside the box. Today, France is Europe’s second biggest crowd-funding market, after Great Britain, and one of the most dynamic markets in Europe for payment innovations. Today, what I want to say is this: we are learning from you. Through your technology, you too can contribute towards making the financial system more secure.