More than fifty percent of the world's banks claim to have no ability to withstand recession

New delhi date. October 22, 2019, Tuesday

More than fifty percent of the world's banks are weak enough to withstand a recession. Most of the world's banks do not have the financial returns on equity as they are not able to sustain their finances, Mackenzie said in a report.

It has urged banks to develop technology, improve operations and gain strength through mergers before the proposed economic downturn takes shape. We are in a downward spiral of our economy and it is time for banks to take drastic measures because they are not in the right position, ”said a Mackenzie associate. Looking to get to the final and nobody can afford to rely on their achievements.

The decade following the global financial crisis has seen a number of innovations in the financial services sector, from new fintech startups to big companies when competing against these competitors, joining them or acquiring them.

In his report, Mackenzie said that the risk of banks has become a brief note of history as newcomers have changed the behavior of consumers.

Recent efforts by banks to increase efficiency have been viewed as a normal business. Banks allocate only 5% of their information technology budgets for innovation, while fintech allocates more than 5%.

New technology companies emerging in the world are fast approaching financial-services sectors. One of the things that is making matters worse for banks is that new players are looking at the high returns that banks provide, such as credit cards.