Yakov & Partners predicts the disappearance of up to 80% of small and medium-sized banks in 10 years

65-85% of small and medium-sized Russian banks will disappear within 10 years, according to the consulting company Yakov and Partners (the former Russian division of McKinsey). Experts attribute this to increased competition from the largest credit institutions that are actively implementing digital technologies and improving the quality of service.

Jacob & Partners in its assessment is based on the experience of past crises and taking into account the current situation. “In the current environment, medium and small banks may face serious problems,” the company said in a report, excerpts from which are quoted by “RIA News”.

The consulting company expects that the largest banks will continue to strengthen their positions, so small and medium-sized credit institutions will not be able to remain competitive “in their client and product niches.” Large banks will expand their regional presence where “local players are strong.” Medium and small banks can be absorbed or leave the market on their own.

Yakov & Partners also predicted a decrease in the net operating income of “classic” issuing banks by 20-50 billion rubles if customers of sites such as Yandex Market, Wildberries and Ozon pay on these sites with cards offered by these sites . Marketplaces have previously taken over banks and now offer customers benefits when paying for goods with their own cards.

On the prospects for lending in 2023 – in the material “Kommersant” “Banks are preparing record profits”.

Leonid Uvarchev