- In the last four years, the major banks have had a 33% reduction in revenue from corporate credit card transactions, 12% from individuals credit card transactions;
- This phenomenon is occurring as the payments industry becomes increasingly instantaneous, free, and invisible.
Over the next five years, banks will lose a significant chunk of their revenue to the ongoing payment revolution led by fintechs, big techs, and even retailers. According to the Accenture consultancy’s report, 15% of the global revenue of the world’s largest banking institutions ($ 280 billion) will be lost in this battle by 2025.
As reported by Gazeta do Povo newspaper, in the last four years, the major banks have had a 33% reduction in revenue from corporate credit card transactions, 12% from individuals credit card transactions, and 15% from debit card transactions in general.
This phenomenon is occurring as the payments industry becomes increasingly instantaneous, free, and invisible – features that form the acronym IGI in portuguese, which epitomizes the ongoing revolution in this industry, according to Accenture.
Joana Henklein, Accenture’s Executive Director of Financial Services for Latin America, told Gazeta do Povo that the banking sector itself is already aware that this brave new world is inevitable.
“From 2015 to 2018, the [global] number of fintechs focused solely on payments has increased by 97%. It’s exponential. As there is a lot of revenue you end up having a lot of actors, which is positive for the end market to be better served, because it has competitiveness, and especially innovation, which is something that the Brazilian market has always had ” Henklein told Gazeta do Povo.