Banks urged to digitalize

Source: Xinhua | 2017-05-10

CHINESE banks should invest at least 3 percent of their annual income in technology and digitalization in order to win back clients lost to alternative financial services, consulting firm McKinsey & Co said yesterday.

Leading global banks invested 17-20 percent of pre-tax income in digitalization while domestic lenders lagged behind as they did not see it as a business strategy, McKinsey said.

“The lack of strategy in digitalization would eventually impact banks’ return on equity or productivity ... and giving market share to other emerging financial technology services,” said Joe Ngai, managing partner of McKinsey China.