The Fight for the Customer
mckinsey_global_banking_annual_review_2015
mckinsey_global_banking_annual_review_2015
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2 <strong>The</strong> <strong>Fight</strong> <strong>for</strong> <strong>the</strong> <strong>Customer</strong>: McKinsey Global Banking Annual Review 2015<br />
Executive Summary<br />
For global banking, <strong>the</strong> roller-coaster ride of <strong>the</strong> past 10<br />
years is at last coming to a halt. A new reality is taking hold.<br />
Return on equity (ROE) is stable at 9.5 percent (<strong>the</strong> third<br />
consecutive year in which returns were in line with <strong>the</strong> longterm<br />
[1980-2015] average), and profits are rising. Banks<br />
have begun to lower operating costs, and <strong>the</strong>ir risk costs<br />
have also fallen.<br />
But this pause in <strong>the</strong> action may be short-lived. <strong>The</strong>re are<br />
few loan-loss provisions left to release, and margins<br />
continue to fall across <strong>the</strong> globe. Cost-cutting is about <strong>the</strong><br />
only cylinder still firing in <strong>the</strong> profit engine. Meanwhile,<br />
banks are under attack from new technology companies<br />
and o<strong>the</strong>rs seeking to poach <strong>the</strong>ir customers. To date,<br />
banks’ losses to attackers have been little more than a