Investment Banking Fights Back

by Jörgen Eriksson on April 17, 2015

Corporate Finance

The 2008 financial crisis disrupted the banking industry in more ways than one. By hardening of banking regulation, the entry of new fintech players, who not only provide technology but are service providers by themselves, and also the ever-changing digital technologies, the banking game just isn’t what is used to be, as we have documented in a white paper last year.

The large banks, hammered for their own failures and those of the government, went  through endless rounds of mergers, cost cuts and redundancies to pay for fines and ever more compliance. In contrast, a handful of smaller financial institutions, many created by refugees from the big firms, are doing well.

So-called “boutique” investment banks have gained a much larger share of the investment banking and advisory on mergers and acquisitions (M&A) since the financial crisis, and they are also gaining other footholds. The boutique firms  flourishing has again shown that the future of banking is about people and contacts, and not only technology, as was believed as one old institution after another was crushed or absorbed by bigger rivals during the crises.

In the video below, published by Financial Times this morning, The FT’s US banking editor Tom Braithwaite and US financial correspondent Ben McLannahan discuss how long America’s main street banks will struggle under ultra-thin interest margins for their core business while investment banking enjoys a recovery.

Investment Banking Fights Back

About Jörgen Eriksson :

Jörgen Eriksson is the founder of Bearing and is the Chairman of the firm since it was created. He has successfully expanded Bearing into covering projects on four continents. He is also Adjunct Professor of Innovation Management at the International University of Monaco and at Universitat Politècnica de Catalunya in Barcelona and he is an active member of the Founders Alliance organisation.

Working with consulting engagements across Bearings practices, he has over the past fifteen years participated in and supervised a large number of client projects, from innovation system development and place development and branding, to merger and acquisition assignments and leading edge research and business development activities for key clients.

His new book, Branding for Hooligans, will be published in 2015. It is about how innovation and branding are key survival factors in our modern times of hyper competitive markets.

Prior to Bearing, he was Director of Europe, Middle East, and Africa for Trema Treasury Management, a technology and consulting services provider, supplying financial software solutions for the global financial industry, Clients included The European Central Bank, Citibank, SEB, South African reserve Bank, Deutsche Bank, Abu Dhabi Investment Authority (ADIA), as well as many other large financial institutions and Fortune 500 companies.

Early in his career Eriksson was educated at the Stockholm School of Economics, where he studied economics, financial economics and philosophy. He then worked in Scandinavian investment banks and also for the Swedish Institute of National Defense Research.

You can contact Jörgen on e-mail jorgen.eriksson@bearing-consulting.com, connect on LinkedIn on http://fr.linkedin.com/pub/jörgen-eriksson/0/38/8a0/ and follow him on twitter on joreri508.

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