Due to the invasion of IT companies in the financial sector, banks may lose up to 60% of profits

    Over the next decade, banks may lose up to 60% of profits on certain services. This assumption was made by specialists at the McKinsey consulting company . Technology companies are increasingly competing with banks. This leads to lower prices for financial services and profit margins of credit institutions.

    Competition with new financial technologies will lead to a 60% drop in bank profits from consumer lending, and revenue by 40%, according to McKinsey. This includes, for example, card loans and car loans, but does not include mortgage lending.

    In areas such as payment processing, lending to small and medium-sized businesses, wealth management and mortgage lending, a decrease in profits of 10-35% is expected in the next decade, they write"Vedomosti" with reference to the Financial Times.

    “In our opinion, [technology] will have the most significant impact on profits, since technology companies provide financial services at minimal cost, and this will result in lower prices for customers,” said McKinsey spokesman Philip Herle. Such companies do not want to receive bank status, as this entails additional costs.

    One of the most famous non-bank payment technologies is PayPal . And recently, Apple Pay systems have entered this market., Samsung Pay, Android Pay. Apple Pay has earned in the U.S. since October 2014. It allows you to use smartphones iPhone 6 and iPhone 6 Plus as a digital wallet when paying for purchases and services. Apple partners in this project are more than 220 thousand enterprises.

    Google in early September launched the Android Pay payment system in the United States. With it, you can pay for goods and services in more than a million American stores, as well as in a thousand mobile applications. In February this year, a 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 higher than expected: payments of $ 30 million were made in a month.

    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 the estimates of Euroset analysts, more than 250,000 people use the near-field contactless technology (NFC) in the phone every month in Russia.

    Megamind wrote that regulators in China and other countries are considering introducing tighter regulation on technology companies providing financial services. Head of HSBC Bank Board of Directors Douglas Flint doubts that technology companies will be able to guarantee the safe use of personal data when providing financial services.

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