McKinsey Financial Services

As financial institutions assess the viability of tokenization, market share gains may go to the pioneers.   Discover key strategies for scaling up successfully as the industry brings financial assets on-chain: https://lnkd.in/garHachf #Tokenization #DigitalAssets #Blockchain #McKinseyInsights #Innovation #FutureOfFinance

Embedded finance is becoming a meaningful way of distributing financial services and is set to displace as much as 30 percent of revenues from traditional bank channels. In our latest article, McKinsey authors Albion Murati, Oskar Skau, and Arvid De Geer detail the drivers of growth and offer ways to deliver lasting, value-positive embedded finance solutions. Get the details by reading “Embedded finance: How banks and customer platforms are converging” https://lnkd.in/euza_8FG #mckinsey #embeddedfinance #banking #technology #financialservices

Thanks to all our guest speakers and the 70+ CXO attendees who joined us in London this week for our 27th Asset Management CEO summit. We hosted a panel on the industry dynamics in 2024 and debated the strategic imperatives for success. Some takeaways from this gathering of industry leaders:   -With a second year of declining profit margins and increasing costs, the industry’s economics remain challenged, despite recovering AuM and net flows -Although some trends persist, new dynamics have formed and the macroeconomic environment has shifted significantly - There are fundamental shifts disrupting the asset management industry and strategic imperatives for succeeding in this transition #AssetManagement #CEO #Mckinsey #Profitmargins #Trends #summit

“𝘍𝘶ß𝘣𝘢𝘭𝘭 𝘪𝘴𝘵 𝘥𝘪𝘦 𝘴𝘤𝘩ö𝘯𝘴𝘵𝘦 𝘕𝘦𝘣𝘦𝘯𝘴𝘢𝘤𝘩𝘦 𝘥𝘦𝘳 𝘞𝘦𝘭𝘵” At today’s EURO FINANCE Summit of dfv Euro Finance Group GmbH in Frankfurt there seemed to be a football analogy for every argument on the state of banking in Germany!   I thoroughly enjoyed the wide-ranging discussion with senior banking leaders, spanning from regulation to competition, consolidation, digitalization, and talent attraction.    Here are just some of the insights I took away from the exchange: #SustainableProfitability: Banks are much more profitable today than they were a few years ago while - in total - still not earning their cost of capital. They must continue to expand fee income – especially in context of stagnating interest rates - and continue to push for sustained profitability. #ClimateTargets: The transformation to sustainability and competitiveness for Germany and Europe is a huge challenge. Financial resources on this scale can only be provided to a limited extent by the state; a large part must come from private investors. We need to turn savers into investors, as was said on the panel multiple times. #NewCompetitors: Banks are in a stronger position in competition with new players. Yet, big tech continues to pose huge competitive stress. Consolidation was discussed as one potential angle, yet not as a solution to all problems. #Technology: After years of cost cutting, technology investments are back in focus, which is essential to remain competitive (very clear empirical evidence that successful banks invest a larger share of their earnings in technology). #Talent: Talent is again a key topic for all banks. Focusing not only on attracting new talent, but also on developing and retaining existing employees given the upcoming wave in retirements.   Many thanks to Lutz Diederichs, CEO Germany, BNP Paribas; Bettina Orlopp, Deputy CEO & Chief Financial Officer, Commerzbank AG; Cornelius Riese, CEO, DZ BANK AG; Stefan B. Wintels, CEO, KfW; for the excellent exchange and Andreas G. Scholz and team for the organization.   #FEFS #FEFS24 #Banking #McKinsey  

McKinsey was the knowledge partner at last week’s American Banker DIGITAL BANKING conference, and we were thrilled to share and take in so much information about scaling AI and related technological transformation. Read our live take on the event here: For banks to demonstrate value from tech and AI, they will need to reach beyond the CIO’s office: https://lnkd.in/ebEY6PN5 #mckinsey #banking #AI #technology

Germany has reached the round of 16 at #EURO2024 at the top of Group A - a fantastic result that few would have expected just a couple of months ago. At the same time, the match against Switzerland had its fair share of difficult moments. One could say something similar about Germany's banks in 2024. Expectations are high (banks are playing a key role in transforming our economy), they deliver results (record profits), yet challenges remain (in terms of profitability, competition, digitalization, talent and sustainability).   I am looking joining senior banking leaders on stage at next week’s Frankfurt EURO FINANCE Summit 2024 to discuss this (that is the banks, not football). We will look at banks’ contribution to transformational challenges of Germany and Europe, and we will discuss how banks can continue their recent run of success.   We are excited about our panel: 👉 Lutz Diederichs, CEO Germany, BNP Paribas 👉 Bettina Orlopp, Deputy CEO & Chief Financial Officer, Commerzbank AG 👉 Cornelius Riese, CEO, DZ BANK AG 👉 Stefan B. Wintels, CEO, KfW   Some of the things we will be diving into:  #SustainableProfitability: How can the German banking sector earn its cost of capital in the long term? #Climatetargets: What role do banks play in financing the transformation how can they benefit more? #NewCompetitors: How can the universal bank hold its own against specialists and tech companies? #Technology: Are German banks investing enough in technology? #Talent: How do banks need to reposition themselves in the competition for talent?   Very much looking forward to meeting many familiar faces in Frankfurt next week!   #FEFS #FEFS24 #Banking #McKinsey

We were thrilled to collaborate with American Banker as their knowledge partner at this month’s DIGITAL BANKING conference. The event welcomed leaders from major financial services institutions and explored critical insights on rewiring organizations for digital and AI, scaling GenAI, innovations around the future of banking, and more. Read our take on highlights and takeaways from the event by Ido Segev and Vik Sohoni in American Banker: https://lnkd.in/etbeV5XP #McKinsey #DigBanking #neverjusttech #McKinseyInsights

Private capital firms and insurance companies are increasingly intertwined. Insurers are gaining access to new investment capabilities and capital partners. Private capital firms are getting access to ‘permanent’ capital while receiving recurring management fees, the potential for accelerated earnings growth and increased valuations. This partnership has resulted in over $31B of net new private capital injection into life and annuities worldwide since 2014. Click here to read the full article: https://lnkd.in/e5SacqAH #insuranceindustry #lifeinsurance

See our observations on the ITC DIA Europe conference in Amsterdam last week. Senior partners Piero Gancia and Simon Kaesler report on their key takeaways from the event, including the promise of generative AI. Read here: “Live take from ITC DIA Europe: For insurtechs, AI offers new opportunities for productivity growth and collaboration.” https://lnkd.in/gKEfxB3h #mckinsey #bankingandsecuritiesmatters #technology #fintech #insurtech

We had an incredible time partnering with ITC DIA Europe in Amsterdam on June 12-13! Our Senior Partners, Simon Kaesler and Piero Gancia, kicked off the event with a keynote session, while our Associate Partner, Christian Irlbeck, moderated an insightful panel on generative AI in insurance. Here are 3 key takeaways: 1. Partnerships between insurtechs and incumbents are crucial for scale, capital, and rapid tech innovation. 2. Generative AI personalizes the client experience and boosts productivity. Success stories abound! 3. Managing uncertainty, having the right capabilities, and leading transformation from the top are essential! Stay tuned for more insights! #ITCDIAEU #ITCDIAAMS #InsurTech