McKinsey Analysts Call Pandemic 'End of an Era' for Banks

Traditional banks have generally weathered the crisis well, but investor interest is increasingly shifting in favor of fintech companies. Since the beginning of the pandemic, players without a banking license accounted for 52% of the increase in the capitalization of the financial sector,

During the pandemic - from February 2020 to October 2021 - financial companies, including participants in the payment, investment and exchange markets, ensured an increase in the market capitalization of the global financial sector by almost $1 trillion, overtaking universal banks, according to a study by McKinsey analysts, received in RBC. We are talking about players who specialize in payments, exchange transactions and securities transactions without banking licenses.

Analysts of the consulting company note that the covid-19 pandemic marked the “end of an era” for banks: after the financial crisis of 2008, which affected the banking sector specifically, the “surviving” market participants increased reserves and capital under the new regulation, were able to survive the pressure of 2020, but faced a problem — digital transformation has accelerated and strengthened the market position of payment and fintech companies. “Most retail banks that take deposits and make loans have been left out,” McKinsey said in a survey.