31% of European Banking Profits at Risk from Digitization

European banking profits are at risk from digitization according to a McKinsey report; the report, “A Brave New World for Global Banking”, says European banks have $35 billion, or 31%, of profit at risk from digitization; fee-based products for traditional banks versus online banks is the main factor for profit; McKinsey says banks must enhance their business models, provide competitive digital tools and data analytic platforms; also suggests that banks partner with financial companies across the industry to reduce and share innovation costs; the McKinsey report also says banks will need to streamline their information technology structures and be more proactive in their regulatory strategies.  Source