The Fight for the Customer
mckinsey_global_banking_annual_review_2015
mckinsey_global_banking_annual_review_2015
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4<br />
<strong>The</strong> <strong>Fight</strong> <strong>for</strong> <strong>the</strong> <strong>Customer</strong>: McKinsey Global Banking Annual Review 2015<br />
market), Eurozone banks could add 2.3<br />
percentage points, at most, to ROE,<br />
and U.S. banks 2 points. In nei<strong>the</strong>r<br />
case, however, will <strong>the</strong> improved ROE<br />
com<strong>for</strong>tably exceed cost of equity<br />
(COE), and banks are at risk of competing<br />
away most of <strong>the</strong> potential windfall.<br />
This report details <strong>the</strong>se findings and <strong>the</strong>ir<br />
implications <strong>for</strong> banks. <strong>The</strong> industry has a<br />
fight on its hands. To win, banks will have<br />
to beat newcomers at <strong>the</strong>ir own game,<br />
delivering intuitive and emotionally rich<br />
customer experiences, while also adding<br />
<strong>the</strong> digital skills needed to become nimble<br />
low-cost competitors. Banks need to<br />
capitalize fully on <strong>the</strong>ir biggest advantages,<br />
data and access to <strong>the</strong> customer,<br />
while also rebuilding trust. Banks that<br />
embrace <strong>the</strong> digital revolution can find<br />
success, holding off attackers with one<br />
hand and less nimble incumbents with<br />
<strong>the</strong> o<strong>the</strong>r.
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