Our analysis has shown that new competitors could ultimately erode one-third of traditional bank revenues in North America in just a few years.
The prospects are particularly bleak for banks that have not yet launched aggressive digital transformations (see Figure 1). But digital prowess is no guarantee of success.
That’s because digital levels the competitive field. As technologies advance, new players will enter the scene rapidly. Even the most digitally savvy traditional banks will lag behind competitors who do things fundamentally differently.
To survive, banks will need to beat their nontraditional rivals at their own game.