Banks may lose billions of dollars in fee-based revenues, study says

11.03.2020 - Davydova Maria
Banks may lose billions of dollars in fee-based revenues, study says

Accenture Plc released its study on Wednesday revealing that major banks across the globe are in danger of losing billions of dollars of fee-based retail revenue coming from the intensified regulatory pressure and tougher competition as new entities offer no-fee services.

The study also noted that bank revenues across 12 markets around the globe in the form of overdraft fees or other charges for services will crumble by 5% in the next 3 to 5 years.

Banked on quantitative analysis of banks’ revenue pools in 12 countries including the U.S., U.K., Australia, and Hong Kong, the study surveyed almost 15,000 bank customers from those countries.

“These players are acting as a catalyst to force the industry to change. Banks will not be able to be as reliant on non-transparent fee-based revenues as they have been doing in the past,” Alan McIntyre, global head of Accenture, said.

The research also warned that bank revenues may decline since bank regulators are now mandating simple free structures to protect customers.

Moreover, the study advised that banks should start integrating artificial intelligence and predictive analytics to gain more trust from customers and boost revenue growth.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from Umarkets.com or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue
×

Help with deposit?