McKinsey: More than half of the world's banks cannot survive if the economy shrinks

0
8



EconomyShorten URL

Consulting firm McKinsey & Co. More than half of all banks in the world are too weak to survive if the economy shrinks.

According to Bloomberg HT, McKinsey said on Monday that the majority of banks around the world may not be economically viable because their equity profitability cannot keep pace with costs. This has forced companies to grow through technology development, transfer of operations and mergers ahead of a potential slowdown.

Kausik Rajgopal, senior partner at McKinsey, said in an interview: inanıy We believe that we are at the end of the economic cycle and that banks should take bold steps because they are not in very good shape. In the last phase of the cycle, no one can afford to lose it. ”

In the decade since the global financial crisis, the financial service sector has experienced a number of innovations. Fintech startups Apple Inc. and Google of Alphabet Inc..

According to McKinsey, banks allocate 35 percent of their information technology budgets to innovation, while fintech companies allocate more than 70 percent. Considering that regulations facilitate entry into the sector, the environment is becoming more and more convenient for new companies to receive shares from banks.

The report includes Amazon.com Inc. in the United States. and Ping An in China, technology companies seized financial service customers, and moreover, new players, such as credit cards, banks are turning to the areas where the highest returns said.



Source link
https://tr.sputniknews.com/ekonomi/201910221040449852-mckinsey-dunyadaki-bankalarin-yarisindan-fazlasi-ekonomi-kuculurse-hayatta-kalamaz/

Dmca

LEAVE A REPLY

Please enter your comment!
Please enter your name here