Canadian banks have spent the last several years pushing into new geographies and business lines, but a new report suggests the ‘big five’ may want to rein things, or at least streamline the business.
Ernst & Young says in its 2015 Global Banking Outlook that banks with global growth aspirations need to reinvent themselves by simplifying their business, or run the risk of being squeezed by an evolving marketplace that no longer rewards sprawling lenders selling products you need a PhD to decipher.
In other words, in a world of increasing regulation, changing investor sentiment and evolving customer behaviour, the old ‘bigger is better’ model is starting to look outdated, particularly with economic growth not exactly setting records.
“Banks that focus and simplify their products will do better than those that try to do everything for everyone,” says E&Y Canadian Financial Services Leader Andre de Haan, summing up the results of the study.
Pick and pay
E&Y says there’s little correlationRead More »from Canada’s rich banks need to simplify: study