If you would like information about this content we will be happy to work with you. McKinsey’s global banking annual report highlights industry struggle. SOURCE: SNL; McKinsey Panorama NOTE: Constant FX used to remove FX volatility in results. McKinsey’s Global Banking Annual Review. Even before the crisis, leading banks in developed markets had achieved 25 percent less branch use per customer than their peers by migrating payments, transfers, and cash transactions to self-service and digital channels. Pełna cyfryzacja może przynieść bankom nawet 350 miliardów dolarów w ciągu kolejnych 3-5 lat – wynika z dorocznego raportu McKinsey & Company. But just as counter-cyclicality has gained prominence on regulators’ agendas, banks also need to renew their focus on risk management, especially the new risks of an increasingly digital world. For best viewing, download an optimized version, Global Banking Annual Review 2020: A test of resilience: Banking through the crisis, and beyond, the full report on which this article is based (PDF–6MB). With an average C/A ratio that is 70 bps higher than peers in more challenged markets (where challenged banks as a group have pulled the cost lever harder than other archetypes), followers have the potential to improve productivity significantly.
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It’s crucial for banks to play a role in climate finance—it’s the logical outcome of their commitments to the Paris Agreement, and it fulfills a critical part of their contract with society. And there is a new heavyweight competitor in town. It is early days, but much of the global economy may eventually be reshaped by ecosystems. One way that banks are doing that is by building a climate-finance business to provide capital to companies to either strengthen their resilience to long-term climate hazards or decarbonize their activities. Press enter to select and open the results on a new page. Now they need equal determination to deal with what comes next by preserving capital and rebuilding profits. Branch networks have expanded and shrunk over the years, but the COVID-19 crisis demands that banks move beyond the heuristics that have prompted shifts in recent years. In 2017, the location of a banks’ operations accounts for just 39 percent of the difference (Exhibit 3). Already we are seeing early success stories from around the world, as banks start to develop platform capabilities. Combining the universal and archetypal levers results in the degrees of freedom available to each bank archetype. As part of this work, banks will need to retrain some branch bankers, in part by conceiving flexible roles that mix on-site and remote work, such as the customer-experience officer. We'll email you when new articles are published on this topic. The trade-off between rebuilding capital and paying dividends will be stark, and deteriorating ratings of borrowers will lead to inflation of risk-weighted assets, which will tighten the squeeze. A decade after the financial crisis, the global banking industry is on firmer ground. Unleash their potential. • 'Return on Tangible Equity' has fallen from 17.7% in 2013 to 2.3% in 2018. Banks’ position in this system is under threat. Unleash their potential. Management consulting firm McKinsey & Company has published a global banking review and found that a majority of banks worldwide With the remainder, they can get trained on new skills to become contact-center agents. It found that 15 percent of branches could be closed while still maintaining a high bar on serving all customers, retaining 97 percent of network revenue, and raising annual profits by $150 million. A full-scale digital transformation is essential, not only for the economic benefits but also because it will earn banks the right to participate in the next phase of digital banking. . The focus now needs to shift toward increasing their share of wallet among current customers by extending their proposition beyond traditional banking products. Not only do they have exceptional data that they exploit with remarkable effectiveness but also, more worrisome for banks, they are often more central in the customer journeys that include big financial decisions. McKinsey’s latest research on the global banking industry leads to a number of additional key findings: With most retail businesses (except investing) already fully explored, at least for now, fintechs are moving into commercial and corporate banking. Leading broker dealers also feature in this group. Learn about
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