UK’s ‘Big Five’ banks have paid 60 per cent of their profits to resolving PPI mis selling and fines, rate rigging forex and Libor and mis selling interest-hedge funds for small to medium businesses.
KPMG’s latest report shows that banks had paid out £9.9 billion in total for all their professional misgivings. They also report it as a gigantic 8 per cent drop.
KPMG advised that UK’s Big Five must concentrate on growing their profitability. They said it requires a ‘radical use’ of new technologies, namely online-based services to deliver better customer value while they reduce operating costs.
KPMG Financial Services Chief Bill Michael said:
“At the same time, competition is increasing as new challenger banks and peer-to-peer platforms offer customers new ways to borrow and deposit and technology-led services such as PayPal and e-wallets change the way money is transferred and goods and services paid for.”
Due to the penalties, banks are now forced to limit their border operations by 2019 to protect consumers from investment banking crashes.