Another round of banking consolidation inevitable –McKinsey,
McKinsey recommended the restructuring of banks’ portfolios, saying another portfolio crisis would be too huge for the Nigerian economy to afford.
It enjoined the banking sector to leverage the lessons learnt from the coronavirus pandemic to achieve sustainability and stressed that digitalization would help banks achieve between 25 and 40 per cent reduction of cost.
McKinsey also prescribed scale, data and analytics, talent hunt as well as efficiency and productivity as the four-pronged model that would enable lessons of the past few months to drive sustainability in the banking sector.
In Nigeria, significant opportunities remain for banks to develop scale across segments—for example by targeting small and medium-size enterprises (SMEs), which have significant unmet needs in the banking sector—or by targeting geographies such as the north of the country, which has been historically underserved,” the McKinsey report said.
Lets make Nigeria economy better again my people.
