Cybersecurity
Banks Face Losing $150 Billion to Startups, Oliver Wyman Says
- Three year dividend freeze could pay for technology investment
- Cost saving from upgrades may total $340 billion, report says
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The world’s largest banks and insurers could lose as much as $150 billion of revenue to financial-technology startups, in a shift that could force lenders to freeze dividend payments for up to three years, according to Oliver Wyman.
The cost of upgrading IT systems to adapt to growing competition could exceed $4 billion at each bank, compared with the $1.7 billion average dividend payout of the 100 largest lenders, according to a report by the consulting firm. Potential cost savings from such investment across the industry could total $340 billion.