Due to the invasion of IT-companies in the financial sector, banks can lose up to 60% of profits
Over the next decade, banks may lose up to 60% of profits on some services. This assumption was made by experts of the consulting company McKinsey . Technology companies are increasingly competing with banks. This leads to lower prices for financial services and profit standards for credit institutions.
Competition with new financial technologies will lead to a drop in bank profits from consumer lending by 60%, and revenues by 40%, estimated at McKinsey. This includes, for example, card loans and car loans, but mortgage loans are not included.
In such areas as payment processing, SME lending, wealth management, and mortgage lending, profits are expected to decline by 10–35% over the next decade, Vedomosti reports, citing the Financial Times.
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“In our opinion, the most significant influence [technologies] will have on profits, because technology companies can provide financial services with minimal costs, and for customers this will result in lower prices,” said McKinsey representative Philip Hurle. Such companies do not want to receive the status of a bank, as this is associated with additional costs.
One of the most famous non-bank payment technologies is PayPal . Recently, Apple Pay , Samsung Pay, Android Pay have entered this market. Apple Pay has earned in the USA since October 2014. It allows you to use the iPhone 6 and iPhone 6 Plus smartphones as a digital wallet when paying for purchases and services. Apple partners in this project are more than 220 thousand enterprises.
In early September, Google launched the Android Pay payment system in the USA. With it, you can pay for goods and services in more than one million US stores, as well as in thousands of mobile applications. In February of this year, the South Korean company introduced its own mobile payment platform, Samsung Pay. It was launched in Korea in August and, according to the company, the results were above expectations: for the month payments were made for $ 30 million.
According to the forecast of the research company Forrester Research Inc., the volume of the mobile payments market in 2015 will be about $ 67 billion, and by 2019 it will grow to $ 142 billion. According to estimates of Euroset analysts, over 250,000 people use Russia’s monthly contactless communication technology (NFC) on the phone every month.
Megamind wrote that regulators in China and other countries are considering introducing stricter regulations for technology companies that provide financial services. The head of the board of directors of HSBC, Douglas Flint, doubts that, when providing financial services, technology companies will be able to guarantee the safe use of personal data of citizens.
Competition with new financial technologies will lead to a drop in bank profits from consumer lending by 60%, and revenues by 40%, estimated at McKinsey. This includes, for example, card loans and car loans, but mortgage loans are not included.
In such areas as payment processing, SME lending, wealth management, and mortgage lending, profits are expected to decline by 10–35% over the next decade, Vedomosti reports, citing the Financial Times.
')
“In our opinion, the most significant influence [technologies] will have on profits, because technology companies can provide financial services with minimal costs, and for customers this will result in lower prices,” said McKinsey representative Philip Hurle. Such companies do not want to receive the status of a bank, as this is associated with additional costs.
One of the most famous non-bank payment technologies is PayPal . Recently, Apple Pay , Samsung Pay, Android Pay have entered this market. Apple Pay has earned in the USA since October 2014. It allows you to use the iPhone 6 and iPhone 6 Plus smartphones as a digital wallet when paying for purchases and services. Apple partners in this project are more than 220 thousand enterprises.
In early September, Google launched the Android Pay payment system in the USA. With it, you can pay for goods and services in more than one million US stores, as well as in thousands of mobile applications. In February of this year, the South Korean company introduced its own mobile payment platform, Samsung Pay. It was launched in Korea in August and, according to the company, the results were above expectations: for the month payments were made for $ 30 million.
According to the forecast of the research company Forrester Research Inc., the volume of the mobile payments market in 2015 will be about $ 67 billion, and by 2019 it will grow to $ 142 billion. According to estimates of Euroset analysts, over 250,000 people use Russia’s monthly contactless communication technology (NFC) on the phone every month.
Megamind wrote that regulators in China and other countries are considering introducing stricter regulations for technology companies that provide financial services. The head of the board of directors of HSBC, Douglas Flint, doubts that, when providing financial services, technology companies will be able to guarantee the safe use of personal data of citizens.
Source: https://habr.com/ru/post/294972/
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