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Banks Must Act Now or Risk Becoming a ‘Footnote’: McKinsey

  • Half of firms are ill-prepared for a downturn, report finds
  • Upstarts spend more on innovation and target lucrative markets
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U.S. Financials Could Continue to Do Well: CLS Investments
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More than half of the world’s banks are already in a weak position before any downturn that may be coming, according to a report from consultancy McKinsey & Co.

A majority of banks globally may not be economically viable because their returns on equity aren’t keeping pace with costs, McKinsey said in its annual review of the industry released Monday. It urged firms to take steps such as developing technology, farming out operations and bulking up through mergers ahead of a potential economic slowdown.