Report: Digitization Threatens Global Banks with Low Profits
European banks are at risk of losing a significant portion of their profits with digital disruption cutting their profits in half by 2020, according to a report from McKinsey. The report, A Brave New World for Global Banking, states that major developed markets in Europe and the United Kingdom have $35 billion, or 31 percent, of profits at risk. It adds that more severe digital disruption could further cut banks’ profits from $110 billion today to $50 billion in the next three years and slice returns on equity (ROEs) in half from one to two percent in the same timeframe. However, the study....
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