By the end of 2020, we expect a shift of four to five percentage points in the share of global payment transactions executed via cash—down from 69 percent in 2019—propelled by evolving behavior in both mature and emerging markets (Exhibit 2). “Payments and cash withdrawals,” Swiss National Bank, data.snb.ch, September 21, 2020, data.snb.ch. Industry analysis & Market Report on McKinsey & Company, Inc. is a syndicated market report, published as McKinsey & Company, Inc. - Strategy, SWOT and Corporate Finance Report. Boards and management should actively consider strategic moves now instead of the cycle forcing it on them in a downturn.”. We use cookies essential for this site to function well. McKinsey Global Institute. When business leaders talk about going digital, many are uncertain about what that means beyond buying the latest IT system. Digital upends old models. In 2019, payments revenues grew at 5 percent, roughly one time the GDP growth rate, mainly resulting from contraction in NIMs. Higher limits for contactless payments also triggered rising adoption rates across the globe, making inroads beyond debit’s typical domain of smaller-value transactions. According to new research, the banking industry is struggling as it approaches the end of the current economic cycle. McKinsey Insights, well-respected financial industry trade magazine, releases damning blockchain report: "The bottom line is that despite billions of dollars of investment, and nearly as many headlines, evidence for a practical scalable use for blockchain is thin on the ground." Please click "Accept" to help us improve its usefulness with additional cookies. Each region posted solid mid-single-digit growth in payments, led by Latin America at 6 percent. Instead, we focus primarily on the state of the payments ecosystem in 2020 and explore the actions payments providers need to take to compete effectively in the “next normal.”. Consequently, all forms of electronic peer-to-peer and consumer-to-business payments have been boosted. Economies are becoming increasingly dependent on digital technology, bringing ... 2019 State of the Industry Report on Mobile Money. 2. Between 2010 and 2019, nominal GDP has grown at roughly 5.0 percent in the geographies covered by McKinsey’s Global Payments Map, while payments revenues have grown at 7.4 percent, or 1.5 times the GDP growth rate. Long-term forecasting is unusually difficult in the current global environment, given the looming uncertainty on multiple fronts: economic recovery, interest rates, global trade, and a murky time frame for public-health breakthroughs. ATM usage fell by 47 percent in April 2020 in India, while the United Kingdom experienced 46 percent declines in ATM usage per month on average from March to July 2020. More than half the players in the global banking sector aren't generating enough returns and should quickly reinvent themselves, according to a report from consulting firm McKinsey. Amazon’s second-quarter 2020 numbers recorded 40 percent year-over-year growth, boosted in particular by the tripling of grocery sales. The first is called “market leaders,” which includes the … While all banks have common actions they can take, each bank archetype has their own specific late cycle priorities.”. Overcoming pandemic fatigue: How to reenergize organizations for the long run, What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries. A half decade of change in a few months For global payments, 2020 stands in dramatic contrast to the year before, which was a relatively stable year. The number of electronic-payment transactions continued to grow at healthy rates in 2019, just shy of 20 percent annually (at 10 percent in value conveyed). According to new research, the banking industry is struggling as it approaches the end of the current economic cycle. our use of cookies, and This is a ‘do or die’ moment. At the same time, governments have tried to protect the economy as a whole and the well-being of companies as well as citizens. Blog posts on consulting-related skills, tools, frameworks. Overall, while the global health crisis leaves banks and specialists with meaningful revenue concerns, the real challenge—as well as the real opportunity—lies in embracing the acceleration of change. 3. According to a survey of more than 2,000 executives around the world, the most likely outcome is the muted-recovery scenario (A1), a combination of virus recurrence and a muted economic recovery, with regional differences. Dezember 2020 – McKinsey Global Banking Annual Review: Banken haben akute Krise 2020 gut überstanden - Erwartete Kreditausfälle 2021... lassen Eigenkapitalrendite auf 1,5% schrumpfen - Mitte 2020 wurden drei Viertel aller Banken unter Buchwert gehandelt For instance, dining, travel, and entertainment expenditures, which often carry higher transaction fees, are unlikely to rebound in the near term. Please click "Accept" to help us improve its usefulness with additional cookies. Global revenues grew at nearly 5 percent in 2019, bringing total global payments revenue to just under $2 trillion (Exhibit 1). Still, the current global context removes many of the long-standing impediments to embracing transformation. Chapter 3: Supply-chain finance: A case of convergent evolution? 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