McKinsey warns banks face wipeout in some financial services

"The digital revolution sweeping through the banking sector is set to wipe out almost two-thirds of earnings on some financial products as new technology companies drive down prices and erode lenders’ profit margins. This is one of the main predictions by the consultancy McKinsey in its global banking annual review, portraying banks as facing “a high-stakes struggle” to defend their business model against digital disruption. McKinsey said technological competition would reduce profits from non-mortgage retail lending, such as credit cards and car loans, by 60 per cent and revenues by 40 per cent over the next decade." To read the full article, click the (VIEW LINK)