The future of banking: A $20 trillion opportunity

Until recently, big banks drove profits and growth by applying synergies, economies of scale, and access to huge pools of capital. This massive industry already manages an estimated $370 trillion in w… See more


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Is the future of banks a $20 trillion breakup opportunity?

Now comes a new whitepaper from McKinsey & Co., “The Future of Banks: A $20 Trillion Breakup Opportunity.” It takes a sobering view of the banking industry and calls for a “daunting reorganization, or breakup” of the Too Big to Fail banks if they are to withstand new challenges from fintech and Big Tech. ...

Will Banks become bigger and more profitable in the next era?

We believe that banks that successfully manage the transition will become bigger and more profitable, with a potential value creation opportunity of up to $20 trillion. In the next era, banks can realign to compete in new arenas, organized around distinct customer needs. ...

What is the future of banking?

According to McKinsey, the future of banking will be contested by banks and nonbanks in five cross-industry competitive arenas: everyday banking, investment advisory, complex financing, mass wholesale intermediation, and banking as a service (BaaS). ...

Should banks break up to create new opportunities?

Breaking up could provide banks with a huge opportunity: higher margins, new revenue streams, and loftier valuations. Ambitious banks can break free from stagnant valuations, thrive, and grow if they are willing to embrace the platforms of the future and make a few strategic, informed big bets. Why break up? ...

Why should you invest in the future of big banks?

The future of banking presents a significant opportunity for those who act quickly. Until recently, big banks drove profits and growth by applying synergies, economies of scale, and access to huge pools of capital. This massive industry already manages an estimated $370 trillion in worldwide assets, and its growth is accelerating. ...

How will banks compete in the next era?

In the next era, banks can realign to compete in new arenas organized around distinct customer needs. These arenas will expand far beyond the current definition of financial services and will also be hotly contested by a wide range of tech giants, tech start-ups, and other nonbanks. ...

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