This study aims to evaluate the competitiveness in European banking industry. For this purpose, 5 European countries, which have the highest GDP, are considered in this study that are Germany, France, United Kingdom, Italy, and Spain. Moreover, 6 different criteria are selected based on the literature review. Fuzzy AHP method is considered to understand the significance of the dimensions and criteria. On the other side, fuzzy TOPSIS model is used to rank these 5 European countries according to competitiveness in the banking industry. The findings show that low cost is the most significant criterion for this condition. In addition to this issue, it is also concluded that Germany and France are on the first ranks regarding the competitiveness in the banking industry. Hence, it is recommended that European banks should firstly concentrate on the cost effectiveness in order to increase the competitive power. In this framework, a detailed analysis should be conducted to understand which cost types are greater in comparison with the others. Hence, it can be possible to minimize the costs of the banks so that these banks can offer lower prices to their customers. This situation has a positive impact on the competitive power of the banks.