Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Hamburger menu
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS

Impending growth crunch confronts wholesale banks with challenge to seize new drivers of future revenues

(PRNewsfoto/Bain & Company)

News provided by

Bain & Company

Feb 20, 2024, 08:10 ET

Share this article

Share toX

Share this article

Share toX

  • Wholesale banks' average annual revenue growth (CAGR) set to drop from 8%+ in 2019-22 to 2% or below 2023-2025, Bain analysis and proprietary survey of bank leaders suggests
  • Worst case projections show minus 2% CAGRs in new era as historical period of ultra-low interest rates and cheap money comes to an end
  • Generative AI and climate financing offer critical new sources of returns for the sector

BOSTON, Feb. 20, 2024 /PRNewswire/ -- Wholesale banks worldwide are urged by a new Bain analysis to seize on key sources of new growth – especially from climate finance and rapid developments in AI – as they confront an imminent crunch on revenues and margins, ending a multi-year run since 2020 that saw a post-pandemic resurgence in their income and returns.

Bain & Company projections – coupled with the view of a majority of large wholesale bank CEOs in a Bain proprietary survey – show that a 2019-2022 period of outsized revenue growth, with compound annual growth rates (CAGRs) of 8% or more, to run out of steam in the period from now to 2025, according to Bain's report, Five Themes That Will Fundamentally Change Wholesale Banking.

Bain expects wholesale bank revenue growth rates to 2025 could drop by fully three-quarters from recent levels to a CAGR of just 2%, with the weakest potential projections showing revenues in the sector actually contracting, with a CAGR of minus 2%. 

The crunch on the prospects for wholesale banks' financial performance comes in the face of higher interest rates, set to remain persistently above the ultra-low levels of prior years – even if central banks reduce current benchmark policy rates ­– and a resulting, adverse shift in financial conditions. Adding to pressures on the wholesale banks' future financial performance are cost pressures from a critical need for heavy spending on IT investments to upgrade and modernize their technology.

Bain's proprietary research supports this weak expected outlook for wholesale bank revenues. In-depth interviews with ~30 CEOs and senior executives at large wholesale banks found that a majority (~52%) believe prospects for the industry are currently only "average" and that recessionary headwinds, especially in Europe, are expected to hit banks' performance.

Some 76% of executives interviewed also believed that their existing technology organization does not deliver value for money for their institution. With wholesale banks facing strong cost pressures from required heavy investments in IT alongside the likelihood of significantly weaker revenue growth, Bain's new analysis maps out the case for wholesale banking institutions to capitalize on new and emerging sources of income to bolster growth and shore up returns.

"The macro-driven boom times fueled by ultra-cheap money are over. Achieving further growth and sustained outperformance versus competitors will be more difficult in the future – but it is achievable for those wholesale banks which commit sufficient resources and make the essential, smart choices around AI, technology, talent and products that resonate and have impact in climate- and carbon-related markets that will be critical for the future," said Carsten Baumgartner, partner in Bain & Company's Financial Services practice.

Leveraging new sources of growth and revenues

In particular, Bain's study highlights major opportunities from climate-related financing and carbon markets and from leveraging fast-moving advances in generative AI.

Climate finance and carbon markets also represent lucrative sources of new potential revenues for wholesale banks, the report concludes. Bain & Company estimates that climate-related products and services will offer a $1.4 trillion opportunity in annual incremental financing globally in the period to 2030, with $550 billion of this addressable by wholesale banks. This could generate a $37 billion annual revenue poll, four-fifths of which would be set to flow from corporate lending. In addition, carbon credits represent an additional revenue opportunity.

Generative AI will fundamentally change wholesale banks' business and operating model, the report finds, with 72% of executives expecting it to transform how their institutions do business. AI use cases cited range from developing insights for corporate clients on topics such as liquidity optimization to optimizing core processes, including automation of key steps in the lending process, to management of regulatory demands. 

Yet the scale of the unrealized opportunity around AI and its uses cases is underlined by only 24% of executives believing their organizations are geared up to unlock AI's potential. Reasons given vary from a shortage of AI expert talent to setting the right priorities for AI implementation.

In addition to the new sources of growth from AI and climate-related financing, Bain also points to other key opportunities that wholesale banks can harness, including adopting greater use of digital assets, modernization of their core IT systems, and doing more to attract and motivate employees who have different priorities than were seen in the past.

Effectively deploying powerful modern technology in core operations is critical to success, the report finds. It notes that applications such as cloud-native banking platforms and processes, supported by AI, can enable banks to automate complex and sophisticated tasks, reducing cost while providing real-time responses to customers.

At the same time, digital assets offer wholesale banks scope to make still further activities more efficient. Blockchain market infrastructure and the use of tokenization have potential to transform the management of private assets, such as PE funds, private debt and real estate with more liquidity and automated settlements, the analysis finds. Similarly, distributed ledger technology may make it possible for banks to eliminate costs from activities such as repetitive know-your-customer due diligence.

In the talent space, the report finds that shifting employee expectations mean that for wholesale banks to regain ground they will need to overhaul their proposition to their teams and tap hidden pools of talent. Overall, gaining the right future talent is seen as a critical goal by the majority of the interviewed wholesale banking executives, who highlighted an urgent need to elevate this priority to be high on their management agendas, reflecting pressure to secure results in this area to ensure enhanced future performance.

Media contacts
To arrange an interview or for any questions, please contact:
Gary Duncan (London) — Email: [email protected]
Katie Ware (New York) — Email: [email protected]
Ann Lee (Singapore) — Email: [email protected]

About Bain & Company 

Bain & Company is a global consultancy that helps the world's most ambitious change makers define the future.  

Across 65 cities in 40 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today's urgent challenges in education, racial equity, social justice, economic development, and the environment. We earned a platinum rating from EcoVadis, the leading platform for environmental, social, and ethical performance ratings for global supply chains, putting us in the top 1% of all companies. Since our founding in 1973, we have measured our success by the success of our clients, and we proudly maintain the highest level of client advocacy in the industry.

SOURCE Bain & Company

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED

Modal title

Also from this source

Healthcare AI investment focusing on hard-dollar returns and clinical workflows amid shift from pilots to widespread production--Bain & Company and KLAS Research

Healthcare AI investment focusing on hard-dollar returns and clinical workflows amid shift from pilots to widespread production--Bain & Company and KLAS Research

US healthcare providers and payers are ramping up the AI investments most likely to improve profit margins as they focus on an imperative of...

$2 trillion in new revenue needed to fund AI's scaling trend - Bain & Company's 6th annual Global Technology Report

$2 trillion in new revenue needed to fund AI's scaling trend - Bain & Company's 6th annual Global Technology Report

Two trillion dollars in annual revenue is what's needed to fund computing power needed to meet anticipated AI demand by 2030. However, even with...

More Releases From This Source

Explore

Data Analytics

Data Analytics

Data Analytics

Data Analytics

Banking & Financial Services

Banking & Financial Services

Financial Technology

Financial Technology

News Releases in Similar Topics

Contact PR Newswire

  • Call PR Newswire at 888-776-0942
    from 8 AM - 9 PM ET
  • Chat with an Expert
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Italy
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom
  • Vietnam

My Services

  • All New Releases
  • Platform Login
  • ProfNet
  • Data Privacy

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Platform Login
  • ProfNet
Call PR Newswire at
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookies
Copyright © 2025 Cision US Inc.