Banks to go soul searching for new ways of banking
WHEN Aretha Franklin belts out "chain, chain, chain, chain of fools" in her classic song Chain of Fools, some listeners heard it as "change change change, change is good". With the new year just around the corner, it seems timely to indulge in this unintended optimism and ask what lies ahead for the banking industry.
A question mark hangs over the way in which business models in banking would shift to account for the ongoing digital disruption. McKinsey's 2017 banking report has dour predictions of return on equity (ROE) in the banking industry hitting 5.2 per cent by 2025, if banks sit on their hands.
Three paths
The consultancy pointed to three main paths ahead for banks to take. The first two are more traditional in nature: a bank can make more economical …
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Hong Kong regulator to probe PwC auditing role over Evergrande
US: S&P, Dow open flat as Middle East jitters ease, Netflix weighs on Nasdaq
DBS puts 46 retail units, HDB shops on market for S$210 million
China to facilitate Hong Kong IPOs and expand Stock Connect
Global equity funds see surge in outflows as rate cut hopes fade
Gazelle Ventures makes cash offer for No Signboard shares at S$0.0021 apiece