McKinsey says banks have to step up digital efforts to stay relevant

New York

BANKS must increase efforts to offer digital services and automate back-office functions to improve returns, satisfy regulators and ward off new competitors, according to McKinsey & Co.

Some banks need to think of themselves as data companies and may need to spin off back-office units that perform tasks such as collateral management and price verification, the New York-based consulting firm said in an annual review of the banking industry. The move toward digitisation "accelerated markedly" in the past year, McKinsey said.