According to McKinsey’s Global Banking Annual Review, financial institutions have just 18–24 months to position themselves for long-term success in the post-recovery period. In particular, the Review suggests that financial institutions take immediate action to: (1) emulate tech giants by making products that are embedded in the daily lives of customers, (2) reduce a reliance on balance-sheet-driven revenue by focusing on value-added services that generate greater customer involvement and sustainable fees and (3) be more innovative and agile in new product design and deployment. While taking such measures won’t be cheap (e.g. JPMorgan Chase has a USD 12 billion annual tech budget), there are effective ways to accomplish these same goals, including partnering with other financial institutions and building strategic partnerships with fintechs and software vendors.
Dive deeper into McKinsey’s Global Banking Annual Review here.