More nimble, higher-tech rivals are making the economics of garden-variety retail banking “unsustainable” for traditional financial services companies, driving them to focus on specialized digital services for more profitable customers, according to a new study from the consulting firm McKinsey & Co.
McKinsey’s financial services practice found that banks in 2020 spent an average of $550 per U.S. consumer account on everything from customer service to IT systems. That cost is far higher than the $190 in average revenue generated by routine services such as opening new accounts and applying for credit cards or personal loans.
