The region has seen a number of financing structure innovations, but more needs to be done to make a real sustainable impact.

An annual survey by McKinsey dives into the challenges to growth and profitability of European private banks. After a successful 2021, the industry is navigating an uncertain macroeconomic outlook and evolving client needs. 

While banks in the region are trying to anticipate which skills they will need in future, they are also focusing on how to diversify their talent pool across the board. 

Decline in revenue likely to continue into 2024, says Scope Ratings.

As the Basel rules come under discussion, academics say banks need more shareholder capital because systemic banks still rely too much on debt to support their capital needs.

Small and mid-sized banks are likely to offer buy now, pay later solutions to attract new customers. But only the region’s bigger lenders may be able to move the needle.

Despite the advance in the number of people accessing financial services in the region, those who have access to them still face struggles in terms of costs and indebtedness risk.

Global account-to-account transaction value surpassed $525bn in 2022 and is projected to grow at 13% to 2026. 

While net interest margins have peaked, the higher level of prevailing interest rates continue to play in the banks’ favour. 

Of the 650 fintechs in operation in Mexico, just 46 operate under its 2018 fintech law. Industry experts lament its shortcomings.