Banks Say Walmart, PayPal Biggest Threats to Business
Nearly as many senior banking executives are concerned about competition from new financial market entrants, like Walmart and PayPal, as there are bankers worried about competition from the industry’s biggest players.
According to the KPMG Banking Outlook Survey, 28 percent of 100 senior banking respondents said those new market entrants posed the biggest threat to their business. In comparison, 32 cited national banks as the biggest threat.
Regulatory pressure, an interest in online and mobile, and an eye for the underbanked consumer were other popular themes that garnered attention in this year’s edition of the annual banking survey. For example, 69 percent of respondents referred to “regulatory and legislative pressures” as their biggest growth barriers.
Twenty percent of respondents said the nation’s underserved market presents the greatest opportunity for growth, the third-most cited niche in the survey, behind young professionals (23 percent) and the mass affluent (37 percent).
And a majority of respondents identified either mobile (38 percent) or online banking platforms (23 percent) as the bank’s most pressing capital expenditure item. Just 24 percent identified branch acquisition as the top capex priority.
The full results of the survey, conducted in May 2012, are available online.