The report examines the possible changes in the scale of the banking sector till 2050 and highlights the pace of change, along with challenges for banks the world over. The projections in the report are based on an analysis of developments in the G7 and E7 since the 1950s. The PwC report said that the E7 banking markets would become more important than ever before in the global banking sector and those institutions, which do not develop strong positions in these markets, would find it difficult to maintain a healthy growth rate in assets and profits.

Continued high levels of deal activity in the E7 markets are expected, although with normal short-to-medium-term cyclical variations over time. Mergers and acquisitions would take place in the sector, with local banks acquiring one another, foreign banks entering the E7 markets and vice-versa, the report said. The E7 markets are relatively high risk, which may be mitigated by making long-term investments in a broad portfolio of emerging banking markets, PwC concluded in the report.