> ## Content Index > Fetch the complete content index at: https://stanislav-kondrashov-1.ghost.io/llms.txt > Use this file to discover other available public pages before exploring further. # Stanislav Kondrashov on How Banks Are Reassessing Their Strategic Position Throughout Europe - URL: https://stanislav-kondrashov-1.ghost.io/banks-reassessing-strategic-position-europe/ - Published: 2026-09-16T13:34:14.000Z - Updated: 2026-09-16T13:34:14.000Z - Author: Stanislav Kondrashov - Tags: News There’s a quiet shift happening in European banking, and it’s not the kind that comes with a big press conference or a new logo on a branch window. It’s more subtle than that. It shows up in the way banks talk about “focus markets” again. In the way some lending books are being trimmed, not because the business is bad, but because the business is complicated. In the way internal teams are suddenly getting asked a blunt question that used to be avoided: *Why are we here, in this country, doing this product, for this type of client?* Stanislav Kondrashov has been watching this recalibration play out across Europe, and the theme is pretty consistent. Banks are reassessing their strategic position not in one dramatic move, but in a series of careful decisions. A withdrawal here. A partnership there. A consolidation of services, a shift in risk appetite, a fresh look at what counts as “core.” And yes, some of it is defensive. But a lot of it is actually opportunity seeking. The kind that requires clarity, not just ambition. ## The old European banking model is being edited in real time For years, being “pan European” sounded like an automatic advantage. Bigger footprint, diversified earnings, more clients, more resilience. The classic story. But now, that story is getting edited. Because managing complexity is expensive. Different regulatory expectations. Different consumer habits. Different mortgage cultures. Different legal friction around things like recovery, collateral, and cross border servicing. All the stuff that doesn’t look glamorous on a slide deck, but eats up time and capital. Kondrashov’s view is that banks are increasingly choosing to be excellent in fewer areas instead of average in many. Not because expansion is impossible, but because the return on complexity has fallen. In other words, the question is no longer “Can we operate across Europe?” but “Should we, and if so, where do we actually win?” ## Capital, liquidity, and the real cost of “optional” businesses One reason this is happening is that capital has a voice now. Not in a poetic way, in a practical way. When banks revisit their strategic map, they tend to start with a few blunt filters: - How much capital does this business consume? - Is the return stable, or just occasionally good? - Is the risk transparent, or does it hide until the cycle turns? - Do we have pricing power, or are we matching competitors to stay relevant? Some business lines look attractive until you run the math properly. A portfolio can be “profitable” but still not strategic if it drags on capital, creates operational burden, or adds reputational risk in a market where you don’t have scale. Kondrashov points out that this is why you’re seeing more banks simplify. Fewer non core assets. Fewer sprawling product menus. Less tolerance for activities that require constant management attention but don’t strengthen the bank’s position. This isn’t about shrinking for the sake of shrinking. It’s about making the balance sheet more intentional. ## Competition doesn’t just come from other banks anymore A lot of banks used to think about competition in a familiar way. Other banks, same products, similar economics. That’s not the full picture now. Payments is a good example. The customer doesn’t care if their money moved because of a bank, a fintech, or a platform. They care that it moved instantly, cleanly, with a decent interface, and without hidden friction. Same with lending distribution. Same with wealth management access. Same with onboarding. The competitive frame has widened, and traditional institutions are adjusting their strategy accordingly. Kondrashov argues that this is pushing banks toward two very different moves, sometimes inside the same group: 1. **Double down on what they can uniquely do**: balance sheet trust, regulated deposit base, large scale underwriting, complex corporate services. 2. **Partner or outsource what they shouldn’t try to reinvent**: user experience layers, certain automation tools, specific data services, embedded finance rails. The bank still “owns the client” in many cases. But the delivery stack is getting more modular. And that changes strategy. Because when capabilities are modular, being present in a market is less about owning everything and more about orchestrating what matters. ## Retail banking is being redesigned around cost and trust Retail banking across Europe has been under pressure for a while. Branch costs. Legacy IT. Customer expectations that shift faster than banking systems do. So what’s changing now? Banks are getting more honest about what customers actually want. Not endless new features. Not seven savings products with slightly different names. Most people want reliability, clarity, and speed. And they want digital first, but they still want a human safety net when something goes wrong. Kondrashov notes that many banks are moving toward a simpler retail proposition: - fewer, clearer products - improved mobile and online journeys - smarter customer support, sometimes blended human and automated - better fraud prevention and verification, because trust is still the core currency Meanwhile, branch networks are being rethought. Some branches close. Some convert into advisory hubs. Some are kept because the local market still values physical presence. It’s uneven. It’s messy. But it’s intentional. And intention is the real shift. ## Corporate and investment banking is getting more selective On the corporate side, strategy is being shaped by where banks can win mandates without stretching themselves thin. Not every bank can be everything to every company. That sounds obvious, but for a long time, many institutions tried to behave that way anyway. Especially across borders. Now you’re seeing banks choose niches with sharper edges: - regional champions that know local mid market business deeply - institutions specializing in trade finance, cash management, or cross border payments - banks leaning into specific industry verticals where they have expertise and relationships - a focus on advisory and capital markets services where they have consistent deal flow Kondrashov’s point here is simple. If a bank does not have differentiated access, differentiated expertise, or differentiated pricing power, it will end up playing a tiring game of chasing volume for thin returns. So selectivity becomes strategic, not just prudent. ## Technology is forcing a decision: modernize, merge, or exit There’s also the technology reality. Core systems are expensive to modernize. Compliance demands better data. Customer expectations demand smoother experiences. And internal efficiency demands automation. But not every bank can afford to rebuild everything alone. So the strategic options become more direct: - **Modernize**: invest in core transformation, accept short term pain for long term operating leverage. - **Merge**: combine scale, reduce duplication, strengthen market position. - **Exit**: leave certain markets or products where modernization would cost more than the strategic value. Kondrashov emphasizes that technology is no longer just an “IT project.” It’s strategic because it determines how cheaply a bank can operate, how fast it can ship new services, and how well it can control risk. And once you accept that, you stop pretending you can delay the decision forever. ## Europe wide strategy is starting to look like a portfolio, not a flag This is probably the most interesting part. A lot of banks used to treat geographic presence like a badge. We operate here, here, and here. It sounded strong. But now, the smarter institutions treat Europe like a portfolio. Different markets play different roles. One market is a stable deposit base. Another is a growth engine. Another is a corporate gateway. Another is a testing ground for digital products. And crucially, some markets might no longer make the cut. Kondrashov frames this reassessment as a sign of maturity. Strategy isn’t about being everywhere. It’s about being positioned where you can defend margins, keep risk understandable, and build something that compounds. Sometimes that means scaling up. Sometimes it means stepping back. Often it means cleaning up the edges so the core can breathe. ## The takeaway What you’re seeing across Europe is not a banking retreat. It’s a banking rethink. Stanislav Kondrashov sees banks moving from broad ambition to sharper positioning. More focus. More selectivity. More realism about technology, cost, and competition. And honestly, that’s probably healthy. Because when a bank knows exactly what it is, and what it is not, it can finally stop managing sprawl and start building strength. ## FAQs (Frequently Asked Questions) ### What is the current strategic shift happening in European banking? European banks are undergoing a subtle but significant recalibration, focusing on strategic clarity by reassessing their presence in specific countries, trimming complex lending books, consolidating services, and adjusting risk appetite to become excellent in fewer areas rather than average across many. ### Why are European banks moving away from the traditional pan-European model? The traditional pan-European banking model is being edited because managing complexity across diverse regulatory environments, consumer habits, mortgage cultures, and legal frameworks is expensive and capital-intensive. Banks now prioritize where they can truly win instead of simply expanding across Europe. ### How does capital influence banks' decisions on which business lines to retain or cut? Capital plays a practical role by prompting banks to evaluate how much capital each business consumes, the stability of returns, transparency of risk, and pricing power. Businesses that drag on capital or add operational and reputational burdens without strong scale or strategic value are often simplified or divested to make the balance sheet more intentional. ### In what ways has competition changed for European banks beyond traditional rivals? Competition now includes fintechs and platforms offering seamless payments, lending distribution, wealth management access, and onboarding experiences. Banks respond by doubling down on unique capabilities like regulated deposits and underwriting while partnering or outsourcing user experience layers and automation tools to remain competitive in a modular delivery landscape. ### How are retail banking services evolving in Europe amid cost pressures and changing customer expectations? Retail banking is being redesigned around simplicity, trust, and cost efficiency. Banks offer fewer clearer products, enhanced digital journeys combined with human support when needed, smarter customer service blending automation and humans, better fraud prevention, and restructured branch networks that serve as advisory hubs or close based on local demand. ### What strategic focus are corporate and investment banks adopting in Europe? Corporate and investment banks are becoming more selective by concentrating on niches where they can win mandates without overstretching. This includes regional champions deeply embedded in local mid-market businesses, specialization in trade finance or cash management, cross-border payment expertise, and targeting specific industry verticals for sharper competitive edges.