long range planning Long Range Planning 34 (2001) 179-207 www.lrpjournal.com The Changing Landscape of the European Financial Services Sector Bert Flier, Frans A.J. van den Bosch, Henk W. Volberda, Carlo A. Carnevale, Neil Tomkin, Leif Melin, Bertrand V. Que ´lin and Mark P. Kriger The European financial services sector is confronted with major forces that have changed its competitive dynamics and the strategic context. Firstly, we investigate the pace of the diffusion of two forces for strategic renewal (technological innovations and regulatory changes); secondly, we assess similarities in the pace of diffusion across countries; and thirdly, we assess the impact of these developments on the European financial landscape, focusing on five EU countries from 1990 to 1999. Preliminary findings suggest that country-specific patterns of diffusion have decreased substantially, indicating the emergence of industry-generic patterns of diffusion, while the speed of diffusion is increasing within the sector. This will give rise to a hyper-competitive landscape in the beginning of this century. Understanding the emergence of such landscapes creates important managerial challenges for the strategic renewal journeys of both incumbent firms and new entrants, in the financial services sector and in sectors confronted with similar developments.  c 2001 Elsevier Science Ltd. All rights reserved. Introduction The European financial services landscape is changing dramati- cally. Are most of these changes country-specific or is a common European pattern emerging? How do the forces of changing regulations and technological development influence the rate of emergence of new landscapes? What are the consequences of these changes for strategic renewal? Taking an outside-in per- spective, the answers to these sorts of questions may help man- 0024-6301/01/$ - see front matter  c 2001 Published by Elsevier Science Ltd. All rights reserved. PII:S0024-6301(01)00029-2 Bert Flier is a Research Associate at the Rotterdam School of Management, Erasmus University Rotterdam. Department of Strategic Management and Business Environment, Rotterdam School of Management, Erasmus University Rotterdam, PO Box