The McKinsey Podcast What's next for global banking?
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Feb 28, 2025 Join Klaus Dallerup, a McKinsey Senior Partner renowned for his insights on global banking trends, and Pradip Patiath, another Senior Partner specializing in digital financial services, as they explore the future of banking. They discuss the industry's recent profitability contrasted with emerging skepticism. Key topics include the productivity challenges banks face despite tech investments, the intense competition for talent, and the transformative potential of cryptocurrency. Discover strategies for navigating volatility and evolving client expectations in this dynamic landscape.
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Banking's Paradoxical Success
- Banking is the world's most profitable sector, intermediating $400+ trillion in assets.
- Despite this, skepticism exists regarding long-term value creation.
Banking's Productivity Puzzle
- Despite heavy tech investments, banking's labor productivity has declined, unlike other industries.
- This decline contrasts with productivity gains in other sectors.
The Branch's Resilience
- Predictions of the branch's demise are premature; human interaction remains important in banking.
- Branch usage varies by market and competitive dynamics; the US has been slower to adopt digital-only banking.