Revenues in fintech are projected to grow three times faster than the traditional banking sector. Here are three ways banks can prepare for their digital future.
McKinsey warned Wirecard to take immediate action on controls in their largest business more than a year ago; the consultancy...
European banking profits are at risk from digitization according to a McKinsey report; the report, "A Brave New World for Global Banking", says European banks have $35 billion, or 31%, of profit at risk from digitization; fee-based products for traditional banks versus online banks is the main factor for profit; McKinsey says banks must enhance their business models, provide competitive digital tools and data analytic platforms; also suggests that banks partner with financial companies across the industry to reduce and share innovation costs; the McKinsey report also says banks will need to streamline their information technology structures and be more proactive in their regulatory strategies. Source
A recent book by McKinsey executives details the way to do digital and AI transformation. They enable and augment an existing strategy
In its annual banking report McKinsey & Co. said there is the potential for 40 percent of revenues that could be at risk by 2025 from firms like Amazon entering the space; Asheet Mehta, one of the authors of the McKinsey report, said in an interview reported by American Banker "E-commerce and tech giants are under pressure to keep increasing revenue, and financial services is a large pool they can go after. We're starting to see that." Source.
Mckinsey has released a new report on fintech; report focuses on seven changes in fintech that could affect the industry; factors include expanding scope, increasing diversity, improving collaboration, impending consolidation, normalizing valuations, shifting regulations and emerging ecosystems. Source