I agree with McKinsey's analysis of the strengths of technology companies in driving down margins. However, I disagree with their conclusions. Time and again (a

I agree with McKinsey's analysis of the strengths of technology companies in driving down margins. However, I disagree with their conclusions. Time and again (at least in the US), banks have proven to be masters of legislation and regulation, putting up legislative and administrative roadblocks that prevent technology companies from competing with them head-on. This is why the payments space is such a difficult one for startups to compete in - the amount of reporting work necessary to ensure regulatory compliance is absurd. Combine that with the fact that the regulation oftentimes limits you to the same technologies that the banks themselves are using, and I don't see existing banks losing their profit margins any time soon.