Retail Banking Growth in Emerging Markets Slows According to New Oliver Wyman Report
24 11월 2016 - 3:17AM
Business Wire
Retail bank growth across 12 emerging markets, referred to as
the EM12, will slow according to a new report titled “Playing to
Win, Retail Banking Strategies for Emerging Markets” from Oliver
Wyman.
“The nature of retail banking growth in EM12 is undergoing a
major change,” said Oliver Wyman partner Michael Wagner. “With
slower growth rates, banks need long-term, cohesive strategies,
which will allow them to grow faster and create clear separation
between winners and laggards.”
The EM12 include China, Indonesia, Malaysia, Thailand, India,
Saudi Arabia, Turkey, South Africa, Brazil, Mexico, Chile and
Colombia. These markets saw rapid growth – an average of 18 percent
a year – between 2010 and 2013. Growth was fueled by rises in
household income and strong macroeconomic conditions, among other
factors. These markets accounted for more than 75 percent of global
financial services revenue growth between 2010 and 2013 according
to the report.
However, there has been a significant slowdown across a number
of major markets over the past two years, due primarily to slowing
GDP growth, increasing volatility in currency markets, and changing
credit cycles. The report predicts slower growth will continue over
the next five years, with overall retail revenue growth in the EM12
falling to nine percent between 2015 and 2020. Declines in growth
will be most pronounced in China, Brazil, Mexico, Thailand and
Saudi Arabia.
In spite of the relative slowdown, EM12 will continue to be the
driver of global growth in retail banking because the top ten
developed markets are expected to grow by only two percent annually
over the next five years. Over this period, the EM12 retail banking
revenue will grow by more than US$450 billion. This will be fueled
by the extension of access to financial services to an additional
250 million households and the increasing need for financial
services from another 90 million households as they transition from
the mass market to the mass affluent segment.
The report identifies four key opportunities which will define
outperformance for EM12 banks:
1. Adoption of digital channels, products and
business models
2. Untapped opportunity in small and
medium-sized enterprises (SMEs)
3. Sustainable growth in retail credit
4. Development of an affordable banking
proposition
“Despite the slower growth across the region, there is still a
great opportunity for the EM12 compared to developed markets, since
there is more room for expansion and business models remain more
profitable,” Wagner added. “Effective response will lead to
accelerated growth in performance, enabling market leaders to grow
as much as two to four times as fast as lagging institutions.”
About Oliver Wyman
With offices in 50+ cities across 26 countries, Oliver Wyman is
a global leader in management consulting that combines deep
industry knowledge with specialized expertise in strategy,
operations, risk management, and organization transformation.
Oliver Wyman is a wholly owned subsidiary of Marsh & McLennan
Companies [NYSE: MMC]. For more information on Oliver Wyman visit
www.oliverwyman.com. Follow Oliver Wyman on Twitter
@OliverWyman.
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version on businesswire.com: http://www.businesswire.com/news/home/20161123005629/en/
For Oliver WymanFrancine Minadeo,
212-345-6417francine.minadeo@oliverwyman.com
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