|Bank of Nova Scotia - BNS.t is the third largest bank in Canada by deposits and market capitalization. It serves more than 21 million customers in over 55 countries around the world and offers a broad range of products and services including personal and commercial banking, wealth management, corporate and investment banking.|
BNS reported assets of $783 billion.
The Globe and Mail reports in its Wednesday edition that McKinsey & Co. says banks could lose 60 per cent of their retail profits to nimble fintech firms, such as Mogo Finance, within the next decade.
The Globe's David Berman writes that McKinsey says banks are producing profit of about $1-trillion (U.S.) globally, providing a powerful incentive for start-ups to grab even a thin slice of that business with cheaper or more convenient services. These slices can add up to a major threat. "The changes to come over the next 10 years will be less visible than the global financial crisis or the bursting of the dotcom bubble -- and yet their impact on banking's economics and even fundamental business models will be much more substantial," says McKinsey. In Canada, retail banking accounts for 50 per cent to 70 per cent of the profits of the Big Six banks, underlining why chief executive officers have been highlighting the urgency to adapt to changes.
The threat, McKinsey argues, is not that new players will take balances away from the banks, but rather will take over the customer relationship and sales opportunities as disruption kicks in, and migration toward non-bank services grows exponentially."