Many financial institutions are thinking about the possibilities of digitalization.
Major financial institutions have lost about $ 635 billion in market capitalization amid the coronavirus pandemic. This is the conclusion made by the specialists of the company Buy Shares, after they have analyzed the performance of 14 banks.
Analysts focused on studying data from financial institutions from December 2019 to August 2020. According to Buy Shares observations, US Wells Fargo suffered the most over the indicated period of time. From December 2019 to August 2020, the bank lost 56.26% of capitalization.
Data: Buy Shares Research
In second place was the Spanish Banco Santander with a result of -46.16%. And the third place was taken by the leader of the market capitalization among the list of participants – the American financial holding JP Morgan (-30.16%).
The best result was recorded by the Japanese Mizuho Financial Group. During the indicated period of time, the financial institution lost 11.33% of capitalization.
Change in the capitalization of financial institutions by months. Data: Buy Shares Research
The Buy Shares team believes that the reason for the loss of capitalization on the part of large financial institutions was the financial crisis. The latter manifested itself against the backdrop of the coronavirus pandemic. The crisis, the researchers are sure, has caused the destabilization of world markets and increased asset volatility. According to experts, the financial sector has suffered more than others over the indicated period of time.
The researchers noted that many banks, amid the pandemic, paid attention to the possibility of implementing technical solutions based on artificial intelligence and automating work processes.
The changes, according to experts, have accelerated the industry’s transition to digital banking. According to the Buy Shares team, the interest in the implementation of new technical solutions on the part of financial organizations can have a positive effect on their level of competitiveness.
We will remind, earlier the researchers came to the conclusion that bitcoin has improved its position in the market during the coronavirus pandemic.