Job Cuts Alone Won’t Be Enough to Save Big Banks, McKinsey Says
- Bank industry is ‘just not working,’ according to consultant
- Problem seen in ambition to be all things to all customers
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Firing people won’t be enough to save the world’s biggest banks from technological and regulatory changes that have reshaped the industry -- whole businesses must go, according to McKinsey & Co.
Almost every bank will have to quash aspirations to be all things to all customers so that they can eliminate fixed costs, the consulting company said Wednesday in a report titled “Time for Tough Choices and Bold Actions.” Only three to five global full-service banks will survive, McKinsey said.