Liu Minxia

    mllmx@msn.com

    MORE than half of senior retail bankers admitted that non-traditional financial services providers are posing a threat to traditional banks, while only one-third of them believe this presents partnership opportunities, a latest research report by PwC showed.

    The report, the result of a survey of 560 financial services executives from leading financial institutions in 17 countries, also showed that more than two-thirds believe it is important to consider how global trends [such as economic growth, and technological changes] will impact the banking industry in 2020.

    Based on conservative estimates, the global banking industry could see an incremental uplift of 200 billion yuan (US$33 billion) in profit by 2020.

    “There are several challenges facing retail banks in China,” said James Chang, PwC China financial service consulting managing partner. “Retail banks customers’ behavior is continually evolving and becoming more mature, but less loyal. It hinders retail banks from making more profits from a high potential customer base.”

    PwC has identified six priorities, including developing a customer-centric business model, and simplifying business and operating models, to ensure traditional banks are well-positioned to succeed in the future.