July 28, 2023
The digital advantage
Digital excellence often translates into improved financial performance, according to a McKinsey study of 20 digital leaders and 20 digital laggards in retail banking between 2018 and 2022. The research by senior partners Eric Lamarre, Kate Smaje, and Rodney Zemmel finds that digital leaders fared better than technological laggards when it comes to P/E ratios, total shareholder returns, and return on tangible equity.
To read the article, see “Rewired to outcompete,” June 20, 2023.
McKinsey Chart of the Day will go on a brief hiatus starting July 31 and will return August 14, 2023.
Consumer confidence boost
July 27, 2023
European consumers report the most optimistic economic outlook in at least a year, despite continuing price increases, according to a McKinsey survey conducted in May. Analysis by senior partner Jessica Moulton and colleagues shows that German consumers reported a 13-percentage-point jump in consumer confidence, the biggest increase of the five European countries surveyed. It was followed by Italy, Spain, the United Kingdom, and France.
To read the article, see “High hopes despite high prices: An update on European consumer sentiment,” July 14, 2023.
The shift to shared mobility
July 26, 2023
Consumers are increasingly looking to shared, more sustainable ways of getting around. According to partner Kersten Heineke and colleagues, the three main forms of shared mobility—hailed mobility, shared micro-mobility, and car sharing—are on the rise. Thirty percent of respondents said they would use private vehicles less than they do now, compared with 20 % who said they would use them more.
To read the article, see “Consumer pull: The growth of shared urban mobility,” June 21, 2023.
The flight path to net-zero flying
July 25, 2023
While the aviation industry has made progress toward achieving net-zero flying by 2050, the path forward will be complex. As of April, 25 airlines and 18 aerospace and defence companies have committed to setting or have set emissions goals related to the Science Based Targets initiative. Partners Axel Esqué and Robin Riedel and colleagues find that fuel efficiency, one key metric for judging progress, improved by approximately 39 percent from 2005 to 2019, yet the absolute growth of emissions is larger than efficiency gains by far.
To read the article, see “Decarbonizing aviation: Executing on net-zero goals,” June 16, 2023.