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The New Reality for Wholesale Banks
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November 2019
Gwenhaël Le Boulay, Ernest Saudjana, Oliver Dany, Deepak Goyal, Carsten Baumgärtner, Pieter Van den Berg, Eriola Beetz, Amine Benayad, and François Orain
The New Reality for Wholesale Banks
2 The New Reality for Wholesale Banks
AT A GLANCE
Amid depressed returns and increased competition, wholesale banks around the world face challenges that threaten their continued viability.
A Decade After the Financial Crisis, Most Banks Still Have Not RecoveredProfitability remains well below precrisis levels for most banks. Tighter regulation, unfavorable interest rates, and stubbornly high costs have become the new reality, leaving many banks struggling to meet their required cost of capital.
Competitive and Customer Pressures Continue to EscalateAlthough returns on regulatory capital have been muted, customer demands are growing louder. Scale-driven, technology-savvy players—from within and outside the financial industry—are responding to those calls with digitally enhanced offerings that could jeopardize traditional wholesale banking relationships and products.
The Next Decade Will Present Difficult ChoicesWith economic forecasts pointing to a downturn and market stressors likely to intensify, wholesale banks will see the gap between winners and losers widen. To remain viable, banks must rethink their activity portfolio, rework their coverage and service models, and digitize at scale.
Boston Consulting Group 3
With the global economy faltering, driving profitable growth has become more challenging for wholesale banks.
As the saying goes, it’s an ill wind that blows no one any good. Still, while a decade of economic expansion boosted many industries, most wholesale banks
emerged from the period bruised. Buffeted by high costs and intensifying competi-tion, profitability remains well below precrisis levels for most. Commercial, corpo-rate, and investment banks now face mounting pressures to transform. Customers want banks to offer more personalized advice while a fast-growing array of fintechs, bigtechs, and banktechs continues to raise the baseline for digital service and delivery. Competing in this changing environment will require banks to gain scale in areas like payments or foreign exchange on one hand and specialize in expertise- driven products like leveraged buyouts or M&A on the other. Likewise, they’ll need to cut costs in some areas and invest heavily in others. With the health of the global economy faltering, this balancing act will become more difficult.
In light of these challenges, BCG is embarking on a new publication series aimed at helping wholesale banks assess the risks and opportunities facing them and plot the course to growth. This first piece offers a detailed look at the state of the whole-sale banking market and the disruptive forces at play.
Recovery Remains ElusiveSince the financial crisis, the wholesale banking space has seen profitability decline substantially. (See Exhibit 1.) Although returns in the midteens or higher were com-mon before the 2007 to 2009 recession, only a minority of banks have achieved those highs in the years following the downturn. Post-tax returns on regulatory cap-ital (RoRC) remain mired in the 9% to 13% range, according to BCG’s benchmark data, with most banks coming in at the lower end of that band.1 While a number of factors are holding down returns, hefty capital provisions have exacted a particular-ly heavy toll.
As returns ebb, more banks are finding themselves underwater. Our analysis reveals that the average hurdle rate for corporate and investment banks sits at roughly 15%.2
1. To compare the performance of players in wholesale banking, BCG uses the metric of post-tax RoRC. This proxy for the more usual RoE avoids under- and overcapitalization bias. Regulatory capital is defined as 12.5% of RWA across commercial, corporate, and investment banking segments. 2. BCG estimates that the hurdle rate in the wholesale banking industry is 15%, on the basis of our review of capital costs for more than 200 banks globally with assets of greater than $50 billion. The indicative capital hurdle rate is based on the typical bank cost of equity of 12% to 14% and capital buffers of 1% to 3%.
4 The New Reality for Wholesale Banks
As a result, few of the commercial, corporate, or investment banking divisions in our benchmark generated returns high enough to cover their cost of capital in recent years.3 (See Exhibit 2.)
Bank performance shows some notable standard deviations, however. For instance, we see growing stratification between “the best and the rest,” with top-quartile players delivering RoRC that is more than 10 percentage points higher than the bottom quartile.
Geographic factors are also skewing performance. Favorable economic tailwinds for US players, for example, give wholesale banks in that country a roughly 2- to 4-point RoRC advantage over their European counterparts. Banks in emerging mar-kets, meanwhile, continue to benefit from a lighter cost structure and a cost-income ratio (CIR) that is 20% lower on average than their mature-market peers.
Losses
Breakdown of total income(basis points of RWA)
Post-tax return on regulatory capital (%)
Cost-income ratio (%)
–9
Precrisis Current
14 13
Commercialbanking
50
175
275
10030
550
270
250
550
49
–19
135 170
75
170
40
350 380
140
Precrisis
11 9
Current
40 45
Corporatebanking
–29
180 200
440 340
5
625545
Precrisis
Cost Pretaxearnings
1510
Current
70 62
Investmentbanking
5
Sources: BCG proprietary corporate banking benchmark; public information extracted from annual reports; BCG analysis.Note: Regulatory capital defined by BCG as 8% of risk-weighted assets (RWA) (precrisis) and 12.5% of RWA (current).
Exhibit 1 | Stringent Capital Requirements Led to Profitability Declines Across Wholesale Banking
3. BCG broadly defines commercial banks as serving smaller corporate clients with annual turnover of less than $250 million, corporate banks as serving upper-midmarket corporate clients with annual turnover of $250 million to $1 billion, and investment banks as serving corporate clients and financial- institution groups with annual turnover of more than $1 billion.
Boston Consulting Group 5
Challenges Cut Across All Banking DivisionsThe wholesale banking market features three broad segments. They are commercial banks (for smaller corporate clients), corporate banks (for upper-midmarket corpo-rate clients), and investment banks (for large multinational corporate clients and financial-institution groups). Given that diversity, we wanted to understand the fac-tors shaping performance at the segment level.
Commercial banks have the healthiest returns, but costs are a concern. Thanks to their large deposit base and strong pricing, commercial banks generate higher income per risk-weighted asset (RWA) than other banking divisions—often by 450 to 600 basis points (bps). But they also have higher cost structures owing to their heavy reliance on branch networks to support small-business and smaller-midmarket clients.
We saw these factors play out in our benchmark, with banks pulled in two direc-tions from 2016 through 2018. (See Exhibit 3.) Overall, commercial banking divi-sions in North America and the rest of the world (with the exception of Europe) managed to deliver strong top-line growth from 2016 through 2018, which allowed them to increase their revenue by 2.7 points and 3.2 points, respectively. But costs, provisions, and negative RWA impacts absorbed a substantial portion of those gains, limiting total RoRC improvements to less than 1.0 point in both regions. Com-mercial banks in Europe were especially hard hit. Revenue growth in the region
0
5
10
15
20
25
13.313.212.0
9.88.0
18.3
7.18.5
10.4
Wholesale banking estimated hurdle rate: 15%
Europe bottom quartile
Europe top quartile
North America bottom quartile
North America top quartile
North America average Europe average Rest of the world average
Rest of the world bottom quartile
Commercial banking
Corporate banking
Investmentbanking
Post-tax return on regulatory capital, 2017–2018 (%)
Rest of the world top quartile
Sources: BCG proprietary corporate banking benchmark; public information extracted from annual reports; BCG analysis.Note: Regulatory capital estimated by BCG at 12.5% of risk-weighted assets (RWA); tax rate estimated at 35% globally.
Exhibit 2 | Returns Are Well Below the Estimated Hurdle Rate of 15% for Most Wholesale Banks
6 The New Reality for Wholesale Banks
was tepid, and from 2016 through 2018, high costs and RWA drove profitability down to less than 10%.
Looking ahead, the shaky economic forecast could pressure banking divisions in all three regions. Because lending makes up a comparatively higher percentage of their portfolios, commercial banks are more exposed to macroeconomic deterioration than other segments are. A downturn could have the combined effect of slowing top-line growth while sending loan losses well above the typical low of 20 bps of RWA that banks have enjoyed over the past decade.
Corporate banks in mature markets feel the sting of rising risk costs. Risk costs eroded profitability in mature markets, lowering RoRC to 7% in Europe (a drop of 2.2 points) and 8% in North America (a drop of 1.2 points) from 2016 through 2018. (See Exhibit 4.) The slump didn’t affect all banks, however. Top-quartile players in mature markets managed to pull away from the rest of the field, gaining a 3-point RoRC advantage over average banks in North America and a 6-point lead in Eu-rope. These top-performing banks share similar characteristics: they are dramatical-ly less credit centric, deliver substantial risk-adjusted lending margins, excel in cost management, and have highly capable sales forces.
The picture is reversed in emerging markets. There, lower provisioning require-ments and robust top-line growth drove average RoRC up 2.6 points from 2016 through 2018, taking total returns to 13%.
Looking ahead, the rest of the field is likely to come under increased pressure in core products as direct lenders and nonbanking institutional investors enter the lending and transaction banking market with competing offerings at lower prices. Branching out into other product areas is a challenge. Unlike investment banking
Continued improvementfor North America players
Deterioration of returnsfor European players
High and stable profitabilityfor players in the rest of the world
0.8 pp –1.2 pp 0.6 pp
12.4%
11.0%
2.7 0.7 3.2 0.70.9
0.9
18.3%
0.8
0.0 1.1
9.8% 17.7%
0.10.7
1.3
13.2%
Post
-tax
RoR
C (2
016)
Rev
enue
Cos
t
Pro
visi
ons
RW
A im
pact
Po
st-t
ax
Ro
RC
(20
18)
Post
-tax
RoR
C (2
016)
Rev
enue
Cos
t
Cos
t
Pro
visi
ons
RW
A im
pact
Po
st-t
ax
Ro
RC
(20
18)
Post
-tax
RoR
C (2
016)
Rev
enue
Pro
visi
ons
RW
A im
pact
Po
st-t
ax
Ro
RC
(20
18)
Sources: BCG proprietary corporate banking benchmark; public information extracted from annual reports; BCG analysis.Note: Regulatory capital estimated by BCG at 12.5% of risk-weighted assets (RWA); tax rate estimated at 35% globally. RoRC = return on regulatory capital; pp = percentage point.
Exhibit 3 | Higher Costs and Provisions Offset Revenue for Commercial Banks
Boston Consulting Group 7
clients, which have bigger wallets and more diversified spending, the lower mid-market that makes up the core corporate banking client base tends to buy a nar-rower range of products, and that can make cross-selling beyond lending and transactions more difficult.
Investment banks face mounting pressures. The past two years show investment banks operating in a multispeed world, with the advantage going to divisions and regions that have deep pockets and greater scale. (See Exhibit 5.) From 2016 through 2018, investment banks globally saw income generation per RWA decline to a level of 500 to 600 bps as a result of deteriorating loan margins and rising capital require-ments. Commoditization is also hurting banks as trading electronification becomes more pervasive. To close the digital divide and create new sources of differentiation, banks have to modernize. Yet few banks can afford the significant spending required. Bottom-line pressures are equally stubborn. Despite the cost reduction programs that many banks enacted in the years following the financial crisis, regulations and fines have caused CIR to stabilize to an average of 65% to 70%.
Still, banks in some regions are faring better than others. North American banks continue to maintain stable returns (with RoRC holding steady at about 12%) on the back of more favorable regulations and a large domestic market. Stronger bal-ance sheets and scale have allowed top players in the region to fund their corporate and investment banking divisions, improve their technologies, and enhance their product offerings.
For European investment banks, the picture is more complex. Although the average RoRC rose from 7.3% in 2016 to 8.5% in 2018, that improvement came almost entire-ly from lower provisions, since revenue shrank. Many investment banks in Europe are optimizing their current portfolios as best they can using existing resources
Profitability under pressure forNorth American players
Sharp drop in profitabilityfor European players
Rest of the worldhas favorable tailwinds
–1.2 pp –2.2 pp 2.6 pp
9.2% 9.3%
4.6 1.6
2.6 0.3
2.3 1.9
13.3%
0.81.8
1.1
7.1% 10.6%
0.0
2.3
3.5
8.0%
Post
-tax
RoR
C (2
016)
Rev
enue
Cos
t
Pro
visi
ons
RW
A im
pact
Po
st-t
ax
Ro
RC
(20
18)
Post
-tax
RoR
C (2
016)
Rev
enue
Cos
t
Cos
t
Pro
visi
ons
RW
A im
pact
Po
st-t
ax
Ro
RC
(20
18)
Post
-tax
RoR
C (2
016
)
Rev
enue
Pro
visi
ons
RW
A im
pact
Po
st-t
ax
Ro
RC
(20
18)
Sources: BCG proprietary corporate banking benchmark; public information extracted from annual reports; BCG analysis.Note: Regulatory capital estimated by BCG at 12.5% of risk-weighted assets (RWA); tax rate estimated at 35% globally. RoRC = return on regulatory capital; pp = percentage point.
Exhibit 4 | Corporate Banks in Mature Economies Hurt by Higher Risk Costs
8 The New Reality for Wholesale Banks
because they either cannot—or do not want to—drive a more significant technology or product overhaul. This optimization game is unlikely to be sustainable. Instead, European investment banks may find more success by focusing on select areas rath-er than trying to compete in an array of asset classes and across the full value chain.
In emerging markets, revenue gains were not enough to counter an increase in the cost of provisions. Investment banks saw RoRC fall from 12.7% to 10.8%. Unless banks in these markets rethink their business models, margin compression will eventually make more of these divisions unprofitable.
Digitization and Customer Expectations Are Raising the StakesAlthough banks recognize they need to modernize, knowing where to invest and which initiatives to prioritize has proved difficult amid shifting customer expecta-tions and the evolving technology landscape. The wrong bets can lead to wasted re-sources and missed opportunities—and create an even steeper hill for banks to climb.
Wholesale banking customers are also feeling the effects of a fast-changing market-place. Effectively managing liquidity and risk requires treasurers and finance teams to look across the banking book; anticipate the impact of rates, currencies, and oth-er variables; and take preemptive action. That tall order is made all the more chal-lenging by an influx of data, greater market volatility, and a more interconnected business landscape.
In light of these challenges, wholesale banking customers are looking for a reliable and experienced partner who is capable of providing personalized advice and con-venient service. Corporate banking customers want simple, straightforward trans-
Continued growth forNorth American players
Return recovery forlow-yielding European players
Headwinds for the rest of theworld (tilted toward Asian players)
0.1 pp 1.2 pp –1.9 pp
11.9% 7.3%12.7%
1.90.4 3.4
0.810.8%
0.5 0.6
1.00.2 8.5%1.5 1.5
0.5 0.412.0%
Post
-tax
RoR
C (2
016)
Rev
enue
Cos
t
Pro
visi
ons
RW
A im
pact
Po
st-t
ax
Ro
RC
(20
18)
Post
-tax
RoR
C (2
016)
Rev
enue
Cos
t
Cos
t
Pro
visi
ons
RW
A im
pact
Po
st-t
ax
Ro
RC
(20
18)
Post
-tax
RoR
C (2
016)
Rev
enue
Pro
visi
ons
RW
A im
pact
Po
st-t
ax
Ro
RC
(20
18)
Sources: BCG proprietary corporate banking benchmark; public information extracted from annual reports; BCG analysis.Note: Regulatory capital estimated by BCG at 12.5% of risk-weighted assets (RWA); tax rate estimated at 35% globally. RoRC = return on regulatory capital; pp = percentage point.
Exhibit 5 | Investment Banks Operate in a Multispeed World That Benefits Players with Scale
Boston Consulting Group 9
actions and the option of self-service (such as a single login page for all active ser-vices and the ability to access information and process requests across multiple devices and touch points). Given the growing set of business and financial risks that they now manage, treasurers are in particular need of help. BCG’s Corporate Trea-sury Insights survey found that treasurers want a digital and frictionless experience to manage day-to-day transactions, cash flow, and liquidity-related operations as well as a trusted business advisor that can counsel them on long-term strategic business and financial issues.
As corporate clients digitally transform their own businesses, banks face increased pressure to step up their capabilities and provide services such as real-time execu-tion and proactive forecasting. The reality is that banks won’t be seen as effective advisors if they are less digitally savvy than their clients.
Despite this imperative, BCG’s research continues to show that wholesale banking di-visions lag in their digital maturity. Few have evolved their service models rapidly enough to take advantage of advanced analytics and other proven tools. Compared with the digital processes and client-centric experiences offered by technology provid-ers and fintechs, many banks still rely heavily on outdated technologies and service models. Rigid infrastructures, for instance, often result in overly complicated onboard-ing processes that require treasurers to complete multiple—and, in many cases, manu-al—steps that feel out of sync with other professional onboarding experiences.
Institutions are increasingly exposed to customer shift because they have not ac-quired and implemented the right technologies or developed high-value use cases. One corporate treasurer told BCG, “What I’m looking for is someone who can provide me with the best solution. If I cannot have it from a bank, I’ll go to someone else.”
Unfortunately for wholesale banks, the “someone else” category is growing more so-phisticated and increasingly influential in the overall wholesale banking ecosystem.
Competition Is Intensifying The wholesale banking market is no longer as bank centric as it used to be. New players that emerged over the past decade are now well entrenched in key niches, and their service is raising the bar for incumbents. As the playing field expands, commercial, corporate, and investment banks are bumping up against a diverse group of well-funded and aggressive challengers.
Fintechs. Although financial technology players aren’t yet large enough to make a substantial dent in bank revenue, they are taking share around the edges. Niche players, such as MarketAxess, are targeting areas that banks once dominated by developing specialized technology to help bond market participants improve workflow and liquidity management and by providing integrated data aggregation, pretrade information analysis, and execution facilitation. Elsewhere, formerly fringe tech players (such as proprietary trading firms) are gaining market share in a number of asset classes. Pressure from fintechs leaves many banks in an unenviable bind—they must invest heavily to stay relevant while earning less as digitization and commoditization drive down prices.
As the playing field expands, commercial, corporate, and investment banks are bumping up against a diverse group of well-funded and aggressive challengers.
10 The New Reality for Wholesale Banks
Bigtechs and Digital Disruptors. Nonbanks with advanced digital capabilities have also introduced disruptive value propositions. Amazon Lending, for instance, provided $3 billion in loans to 20,000 small-business customers from 2011 through 2017, using its vast repositories of transactional, product, and customer data to determine risk scores. Other bigtech powerhouses, such as PayPal, are moving up the wholesale banking value chain. In the space of five years, PayPal increased the cap on its working-capital loan products by a factor of ten, from $20,000 in 2013 to $200,000 in 2018. In the years ahead, these players could pose a formidable threat to banks that serve small and midsize customers.
Banktechs. Some big banks are making bold investments to gain both innovation and scale advantages—with technology spending that exceeds what others earn annually. From 2016 through 2018, for instance, JP Morgan set aside $11 billion a year for technology-related investments. Goldman Sachs announced plans to launch a dedicated treasury management unit in 2020 that will use digital tools and prac- tices to help investment banking clients with their payments and cash management needs. Banktech units like these, which combine the balance sheet strength of a large, global institution with the entrepreneurial culture and agile processes of a digital native, could present a significant competitive challenge to banks with lower levels of digital maturity.
Nonbanking Financial Institutions. Since the end of the financial crisis, funds from NBFIs have accounted for the majority of asset growth in the small-business and midmarket segments. From 2009 through 2018, NBFI assets under management rose by a compound annual growth rate of 12% globally. In the US, where the market is disintermediated, NBFIs now originate 10% to 15% of all midmarket loans. The success of NBFIs in the US and elsewhere could loosen the grip that commercial and corporate banks have had on small-business and midmarket customer relationships.
The Market Outlook Is WorseningSince the end of the financial crisis, the banking industry has operated in a relative-ly benign macro environment. From 2009 through 2019, the US economy experi-enced its longest streak of GDP growth. Default rates on bonds and loans are the lowest in decades, even across emerging markets and niche asset classes that typi-cally see greater exposure.
Policymakers around the world have also been proactive. The US Federal Reserve was quick to pause interest rate hikes and balance sheet runoffs in 2018 when the prospect of an economic slowdown seemed to be on the horizon. The European Central Bank similarly pulled back from plans to reduce quantitative easing. And in China, officials have enhanced credit flows and encouraged debt-financed spending to keep the country’s economy on a stable footing. These economic tailwinds and accommodating monetary policies have driven asset prices to new highs and en-sured a steady fee stream for advisory products.
The market outlook over the next several years is likely to be very different, how- ever. GDP forecasts have deteriorated sharply in the world’s largest economies. And
Whether the slowdown will be mild or severe is
unclear, but what is certain is that
wholesale banks should start
preparing now.
Boston Consulting Group 11
while private debt is nowhere near the sky-high level it was before the last down-turn, it is growing. BCG’s tenth annual investor survey finds the investor outlook souring. Nearly three-quarters of respondents said they believe a recession is likely over the next two years. Two-thirds of investors believe that markets are over- valued. In response, many wholesale banking clients have begun to take a more defensive, value-oriented approach to their investment decisions.
Volatility is also on the rise. Trade war tensions between the US and China contin-ue to sow uncertainty in the capital markets and have driven third-quarter 2019 profit estimates down for many large US companies. In Europe, the slow pace of Brexit negotiations and concerns about the potentially destabilizing impact of mounting populist movements likewise pose investment risks.
Central banks are poised to act, but they have fewer monetary levers left to use. Whether the coming slowdown will be mild or severe is not yet clear, but what is certain is that wholesale banks should start preparing now to strengthen their bal-ance sheets and improve operational performance.
It’s Time for a New Approach Given the profound changes sweeping the wholesale banking landscape, business as usual will no longer work. Plotting the way forward will require leaders to formu-late an agenda for the next decade that questions traditional assumptions, factors in the shifting basis of competition, and retools their organizations. Plans will natu-rally differ, but all banks—regardless of size or region—should consider the follow-ing reinvention imperatives. (These will be explored in greater detail in the next articles in our series.)
Simplify and focus. The widening performance gap between top- and bottom- quartile players means that not all banks will be able to succeed in the same ways. Those that commit to refocusing their strategy in areas where they can deliver superior value—be it through product leadership, service leadership, geographic leadership, or some combination thereof—can open powerful new avenues of growth. To identify high-value opportunities, banks must take stock of their client relationships, competitive standing, and balance sheet health to see where they can create defendable differentiation. They will then need to find a way to execute on those opportunities end to end while exiting deprioritized businesses, a process that will require unwinding relevant support functions as well as associated IT and operations.
Create holistic experiences. Star relationship managers, investment bankers, salespeople, and traders have long served as the primary owners of the wholesale banking client relationship—and the conduit for all other banking services. While this talent remains crucial, client service is a commercial activity that is no longer confined to the front office.
With personalization at scale becoming increasingly important, top-performing banks will need the combined strength of their product, marketing, and back-office resources. For example, when operations and IT specialists bring critical innovation,
Given the profound changes sweeping the wholesale banking landscape, business as usual will no longer work.
12 The New Reality for Wholesale Banks
they add value to the client relationship. Leading banks will develop new ways of working between the front, middle, and back offices to become more resilient and responsive in the face of changing market and customer demands. By focusing on core customer journeys and creating interconnected teams and processes, banks can provide clients with more satisfying, cost-efficient, and integrated service end to end.
Accelerate the rate of digitization. To remain competitive, banks need to invest in advanced analytics, cognitive computing, machine learning, and other smart technol-ogies that can process vast amounts of data, conduct sophisticated modeling, and deliver highly predictive recommendations at blazing speed. Supplemented with automation, the self-correcting mechanisms built into these analytical engines can help banks respond to risks and opportunities in real time in order to remediate routine issues and enhance operational resiliency. Speed is also critical. The ability to offer rapid client onboarding through seamless processes is fast becoming a “make or break” attribute in winning and retaining high-value customers.
Some institutions are already moving aggressively to gain a commercial edge through digitization. Goldman Sachs, for instance, has 3,000 developers working full-time on a proprietary risk and pricing platform that could give the firm a com-petitive advantage. Others, like DBS Singapore, are embracing open platforms and application programming interfaces (APIs) and employing distributed-ledger tech-nology to improve core processes such as asset distribution. And still others, like Wells Fargo and American Express, are exploring opportunities to offer nonbanking products that include business planning and tax advice as well as portals and fo-rums that provide networking opportunities.
Wholesale banks are at a critical juncture. With depleted returns, deteriorat-ing market conditions, and mounting competitive and customer pressures,
most divisions cannot continue to operate in the same mode as before. Propelling growth and profitability over the coming decade will take new strategies, new busi-ness models, and new operating fundamentals. But banks that are willing to rethink their go-to-market approach and reinforce their core can turn adversity into advan-tage. The next articles in our series will explore how to accomplish that, focusing first on the imperative for reinvention within the investment banking space.
Boston Consulting Group 13
About the AuthorsGwenhaël Le Boulay is a managing director and senior partner in the Paris office of Boston Consulting Group and the global leader of the wholesale banking segment in the firm’s Financial Institutions practice. You may contact him by email at [email protected].
Ernest Saudjana is a managing director and partner in the firm’s Jakarta office. You may contact him by email at [email protected].
Oliver Dany is a managing director and senior partner in BCG’s Frankfurt office. You may contact him by email at [email protected].
Deepak Goyal is a managing director and senior partner in the firm’s New York office. You may contact him by email at [email protected].
Carsten Baumgärtner is a managing director and senior partner in BCG’s Munich office. You may contact him by email at [email protected].
Pieter Van den Berg is a managing director and partner in the firm’s New York office. You may contact him by email at [email protected].
Eriola Beetz is a managing director and partner in BCG’s London office. You may contact her by email at [email protected].
Amine Benayad is a partner in the firm’s Paris office. You may contact him by email at [email protected].
François Orain is a senior knowledge expert in BCG’s London office and the coleader of the wholesale banking knowledge team. He is a member of the leadership team of the wholesale banking segment in the firm’s Financial Institutions practice. You may contact him by email at [email protected].
AcknowledgmentsThe authors acknowledge the significant contributions of their BCG colleague Martin Petit de Meurville, a lead knowledge analyst in the London wholesale banking knowledge team. They also thank Philip Crawford for project management and Marie Glenn for writing assistance. In addition, they are grateful to Katherine Andrews, Siobhan Donovan, Kim Friedman, Abby Garland, Frank Müller-Pierstorff, and Shannon Nardi for editorial and production support.
For Further ContactIf you would like to discuss this report, please contact one of the authors.
For information or permission to reprint, please contact BCG at [email protected].
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