The COVID-19 pandemic upended almost all industries, including investment banking. Once bustling trading floors quickly transformed into a dispersed network of home offices and new operational risk challenges arose. Technological innovations and an ever-evolving regulatory landscape have made archaic approaches to operational risk management ill-suited to tackle the complexity posed.
Much has been written about how retail banking has appropriated digitalisation to improve customer experience and gain market share, but investment banking has also adopted digital processes to step up their performance and market share, largely in response to shifting client demands and snowballing competition from alternate providers. As their monopoly hold on investment banking withers, what do incumbents need to do to stay in the race as the frontrunners?
For nearly 150 years, Belgium’s family-owned Degroof Petercam has held fast to its goal of actively taking care of its clients’ wealth and assets. For this progressive bank, “imagining tomorrow” is synonymous with creating an all-inclusive society in which everyone has a chance to thrive. In our interview, CEO Bruno Colmant and Group Head of Investment Banking François Wohrer describe how Degroof Petercam is transforming clients’ futures for the better.
Fear is among the most compelling human motivators, and sometimes it is appropriate. Often in investing, it is not. Fear of the next recession, underperforming, missing the boat, sustainability issues—the list of fear factors seems endless. Is fear the best investment advisor? How can investors counter fear and achieve their goals of investing in the right vehicles at the right time and accurately determining the right time to sell?
Investment-banking provides the fuel for corporate advancement, which is why Goren Capital has during its 20 years established itself as an essential partner to a variety of industries, from natural resources to media—not just in its home state of Israel but internationally. Goren Capital has risen to the top in many commercial areas, such as corporate and project finance, mergers and acquisitions, and financial restructurings.
On August 8, US bank Goldman Sachs reported that the amount raised by cryptocurrency and blockchain start-up companies through early-stage venture-capital funding had been surpassed by that raised by ICOs (initial coin offerings) during the months of June and July.
Technology job opportunities are pushing forward, but the sector seems to be leaving many women behind. What can be done to improve the landscape for women who want to maximize employment opportunities in tech, so that the talents of 100 percent of the workforce are fully utilized?
Zurich-headquartered Credit Suisse is moving away from its traditional business of investment banking as it expands its wealth-management activities.
For 31 years, private-equity firm Blackstone Group has produced healthy returns for its fund investors, despite weathering some stormy economic conditions. Much of its success is due to its strategy of reaching money-making, risk-mitigating deals at the most advantageous times.
The traditional business model of investment banks is facing challenges on several fronts simultaneously. Trading commissions are falling as digitally aware customers seek ever lower rates, while the proliferation of electronic platforms has led to low-commission, discount-brokerage models rapidly gaining market share.