The findings: McKinsey’s “State of Retail Banking” report reveals consistent growth across the industry in recent years. But challenges like rising operational costs, interest rate shifts, and regulatory pressures against fees will force down financial institutions’ (FIs’) margins.
Here are some key report takeaways:
Focus on building relationships: The average US consumer has 5.3 bank accounts, per Javelin Strategy & Research. And more than 40% of Gen Zers with ties to a FI have switched banks over the past year, though most don’t end up closing their old account, per PYMNTS Intelligence To combat this trend and improve primacy, McKinsey recommends that FIs: