Simple business models, digital focus and competitive products are contributing to the rise of the challenger banks who aren’t suffering the remediation costs and legacy issues of the big banks.
This article was published by home.kpmg.com
Challenger banks are once again outperforming the Big Five incumbents on growth, cost-to-income and return on equity. As they march to stronger profits, the big banks are stumbling on remediation costs and legacy issues.
KPMG Head of Challenger Banking, Warren Mead, says the outlook is positive for UK Challenger banks but there are clouds on the horizon.
A new landscape analyses the financial results of the Challenger banks, in relation to the Big Five UK retail banks: Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Santander. It pinpoints new market players and delves into the key trends underpinning this exciting and fast-evolving sector’s success.
New additions to this year’s report include: