Why are banks so competitive?

Banks are highly competitive due to the low differentiation of many financial products and services, leading them to vie for customers primarily through pricing, fees, and interest rates. Additionally, advancements in technology and the rise of fintech have intensified competition by enabling new entrants to offer innovative solutions and better customer experiences. The quest for market share and profitability drives banks to continuously enhance their offerings and customer service. Regulatory pressures and consumer expectations further compel banks to innovate and remain competitive in the financial landscape.