McKinsey: Banks Must Embrace Digital Lending to Grow ROE

“A sea change in banking industry economics is gathering strength,” reports McKinsey in their recent banking report “The Fight for the Customer.”  They report improvements in the economy have allowed many banks to catch their breath, but “banks are on a treadmill: as margins decline, they compensate by improving operational efficiency." (see the chart below).  

“As digital grows, the fight to hold on to customer relationships will be a high stakes struggle…with consumer and SME (small to medium enterprise) lending. Banks that embrace the digital revolution can find success." (our emphasis added)

Short Term ROE Maintenance With Margin Losses 

Offset By Efficiency Improvements Is Not Sustainable

We could not have said it better.  That is why we are providing digital consumer and SME lending technology for your bank with your underwriting, your brand and under your control.  To begin embracing the digital lending revolution, click here.