In defining their strategy for each customer segment and step in the payments value chain, banks can choose to lead, accelerate, follow, or reduce their payments footprint, depending on their wider aspirations and starting point. These included increasing competition (especially from tech companies and fintechs), the rise of technologies that could allow other payments providers to come between banks and their customer relationships, the lack of flexibility in banks’ operating models, the constrained revenue environment, rising customer expectations, and the complex regulatory outlook. Financial Services Our Insights; How We Help Clients; Our People ; Contact Us; Healthcare Systems & Services ... McKinsey Global Institute Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Reducing the payments footprint can be achieved through the use of partners for selected activities and applications. Executives also identified gaps in the capabilities and practices needed to grow their payments business, especially in technology, organisational agility, and monetisation models. To discuss the Outlook’s predictions and their potential impact on the financial services industry in 2018, Deloitte partners David Strachan, Andrew Bulley, Cindy Chan and Tom Spellman were joined by Alastair Barbour of RSA Insurance, Mark Wharton of Morgan Stanley and Stephen Sanders of JP Morgan. Select topics and stay current with our latest insights. Thomas Egner is the Secretary General of the Euro Banking Association, Annick Moes is Head of Communications for the EBA, and Daniel Szmuker is a Director of EBA. June 2019 . 2019 Banking and Capital Markets Outlook: Reimagining transformation 1 Calmer waters A decade after the financial crisis, the banking industry is on firmer ground The global banking system is not only bigger and more profitable but also more resilient than at any time in 2 the last 10 years (figure 1). Financial Services. 2. Leading requires banks to set ambitious goals, capitalise on strong capabilities, and invest at scale in payments as a means of competitive differentiation. Financial Services Our Insights; How We Help Clients; Our People; Contact Us ; Healthcare Systems & Services ... as multiple factors—including capital-market depth, the growth outlook, asset mixes, margin trends, regulation, and risk—should all be taken into account. Coleads McKinsey’s global banking and securities practice and leads high-impact digital transformations, helping companies improve performance,... Matthieu Lemerle Senior Partner, London. Higher standards of client service were already taking hold as a point of differentiation in the wealth management business, but the Department of Labor Fiduciary Rule seems to have further accelerated and codified this trend in the United States. McKinsey: What’s your outlook for India? McKinsey Quarterly. The attention to equities today is limited even with the reduction in interest rates. As technological advances, evolving customer behaviour, new market dynamics, and changing regulatory agendas converge with the after effects of the pandemic, the early 2020s may become an inflection point for payments. Learn more about our retail-banking services. 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