Jonathan Crown

After a tough year for dividends in 2020, the outlook for 2021 is positive. Many of the sectors that were most impacted in 2020, such as autos, should see a good rebound in dividends

2020 was an extremely tough year which had a negative impact on cash flows of economically sensitive and working capital-heavy industries, and thus dividends. The big question is, what will 2021 hold?

For decades banks have benefited from a customer inertia that has provided a cheap and stable source of funding and a high margin payments revenue stream. But these are now at risk from FinTech entrants trying to establish themselves as platform providers for payments, deposit accounts and other banking services. A recent McKinsey study, for example, estimates that payments account for around 30% of global banking revenue, and this is where the digital Payment Service Providers (PSPs) are moving in.