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10/2/15

European Banking Industry: McKinsey warns European private banks over fees - by Chris Flood

Private banks in Europe must overhaul their fees to show they offer value for money or risk being squeezed out, says McKinsey, the consultancy.

Europe’s private banking sector registered an 8.9 per cent rise in profits last year but McKinsey’s latest survey of the industry highlighted big challenges.

Almost a third (29 per cent) of providers in Europe’s €9.2tn industry recorded net investor withdrawals in 2014. One in six lost money.

Further consolidation appears “inevitable” and a number of banks could disappear over the next five years, said McKinsey.

“All private banks will have to sharpen their competitive positioning,” said Sébastien Lacroix, leader of McKinsey’s European private banking practice.

Read more: McKinsey warns European private banks over fees - FT.com

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