As retail banks in the developed world rethink how they offer and sell their products, the economic rising stars are in a similar position, but for different reasons. In the West, banks are struggling with channel saturation; too many expensive branches and ATMs at a time when the digital channel is the only one set to grow. Meanwhile, developing economies are having to balance their growing physical distribution network against their digital channel to avoid the same mistakes.
But in the up-and-coming MINT countries of Mexico, Indonesia, Nigeria and Turkey, distribution is just one of the problems that these rapidly growing economies face. Regulatory controls, a high unbanked segment and a growing need to lend are all problems that countries with fast-growing economies will soon come up against. The long-term economic prospects of these countries hinge on the banking sector being up to the challenge.
