Challenger Banks Could Steal 8 Percent of Retail Banking Revenues

According to a new report from Accenture high street banks face the possibility of losing up to 8 percent of their revenues in the next five years; “Whether in one year or five, the billions in revenues that traditional banks worldwide collect annually for basic services and penalties, like overdraft fees, will erode,” said Alan McIntyre, Senior Managing Director and Global Head of Accenture’s Banking practice, to AltFi; the changing fee structures on overdrafts and cross-border payments are a couple of areas that challenger banks have attacked in recent years; the news of interest rates being cut will also put significant pressure on big banks who will see their margins squeezed further; Rob James, Manager of Merian Financials Contingent Capital Fund and Financials Analyst at Merian Global Investors tells AltFi, “The winners are OneSavings Bank, Virgin Money UK and other “challenger” banks.” Altfi