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STUDIES | PERFORMANCE

Successful Supervisory Board

Boston Consulting Group

WAS ERFOLGREICHE AUFSICHTSRÄTE TATSÄCHLICH ANDERS MACHEN

What makes a supervisory board successful? How can the Supervisory Board make a valuable contribution to the company? In the largest survey to date of 120 German and Austrian Supervisory Board members, we conducted a statistical survey for the first time to determine what actually distinguishes the work of the most successful Supervisory Board members. The results are clear: Successful Supervisory Board members stand out in particular through effective teamwork and a strong strategic focus. >more


Banks and Digital Security

Strategy&

OPEN BANKING

Although Europe is a leader in payment standards and data protection, several hurdles are preventing the breakthrough of open banking: a fragmented payments landscape, structural barriers, a strong focus on data protection and insufficient industry innovation. The opportunities for financial services companies have long been clear, but European banks and payment service providers have not yet taken advantage of them. >more


Banks and Digitization

Bain & Company

AS BANKS PURSUE DIGITAL TRANSFORMATION, MANY STRUGGLE TO PROFIT FROM IT

Many banks spend enormous sums on digital initiatives without achieving the expected results. This is particularly true for the migration of customers to lower-cost digital channels. But technology alone will not solve the problem. Banks need to mobilize their customers. >more


Banking Business

Oliver Wyman

FINANCIAL NEEDS-RESEARCH ABOUT BANKS

Traditional financial service providers are facing increasing competition from the neo-banks, most of which have emerged from start-ups. Younger and tech-savvy customers in particular are increasingly conducting their banking business via innovative FinTechs. At the same time, many established financial institutions still have some catching up to do in terms of digital transformation. However, the traditional banks still have the chance to prevail over the innovative newcomers. >more


Global ETF

J.P. Morgan

GLOBALE ETF STUDIE 2019

This survey is one of the most comprehensive ETF studies to date and covers 240 institutional investors worldwide. The results show that professional investors expect their ETF allocations to continue to rise, with passive, growth-oriented strategies the most popular. Investors appreciate the low cost and flexibility of trading ETFs, but see potential liquidity bottlenecks as a risk. Market volume is the most important trading criterion. >more


2020 Real Estate Outlook

Deloitte

2020 COMMERCIAL REAL ESTATE OUTLOOK

Deloitte sees a great urgency for the Commercial Real Estate (CRE) sector to prepare itself technologically and conceptually for the coming decade, despite optimistic market sentiment. In the face of increasingly demanding tenants, investors and owners, real estate companies should strive for exceptional rental experience and make more intensive use of digital technologies. Using these technologies intelligently, responsibly and security-consciously is becoming a competitive standard for CRE professionals - as is the generation and analysis of data and the use of data-supported AI applications to identify developments, risks and opportunities even earlier and more reliably. >more


Audit Committees

Ernst & Young

A VIEW ON THE CURRENT AND FUTURE ROLE OF AUDIT COMMITTEES - IMPACT FOR GERMANY, SWITZERLAND, AND AUSTRIA

In view of digitalization, new regulatory requirements and a public focus on sustainability, companies are increasingly facing new challenges - and the demands on management and supervisory bodies are changing accordingly. This is the result of the current study "A view on the current and future role of Audit Committees" by the auditing and consulting firm EY. Audit committee members in Germany, Austria, Switzerland, France, Italy, the Netherlands, Sweden and the United Kingdom as well as corporate governance experts were surveyed. >more


European Banks Q2 2019

Deutsche Bank Research

BETTER Q2 RESULTS PROVIDE SOME RELIEF TO EUROPEAN BANKS

Improved performance in the second quarter has given European banks hope that 2019 may still end on a more conciliatory note and that longer-term prospects are not quite as gloomy as some fear. In H1, net interest income rose year-over-year, despite unrelenting margin pressure. Other revenue components were mixed, with fee and commission income disappointing again. Loans and total assets in general increased. Banks cut expenses further, while loan loss provisions picked up from record lows. In the end, profitability and capital levels remained largely stable. Once more, the transatlantic gulf in performance widened slightly, as US banks reported another rise in net income to a new all-time high. >more


Climate Change and Corporates

Deutsche Bank Research

CLIMATE CHANGE AND CORPORATES: PAST THE TIPPING POINT WITH CUSTOMERS AND STOCKMARKETS

Companies drag their heels on climate change because many managers believe that for the planet to win, profits must fall. This report argues the opposite using evidence from both the stockmarket and our own primary research into the unexpected shift in customer purchase habits over the last 12 months. >more


Global Family Office

UBS

GLOBAL FAMILY OFFICE REPORT 2019

Our 2019 Global Family Office Report reveals the latest survey results on the performance and insights from 360 family offices globally. For the first time, family offices also shared their views on broader issues – spanning politics, the economy and climate change. Another new section is dedicated to regional trends for family offices in North America, Europe, Asia-Pacific, and the Emerging Markets. >more


European Banks

Bain & Company

HOW EUROPE’S BANKS CAN RECAPTURE THE CAPITAL MARKETS BUSINESS AT HOME

European banks are struggling to keep up with US banks in the capital markets business, and without a major course change, they will see their share and overall prospects decline further. For capital markets as a whole, we forecast a base-case scenario in which global revenues will grow by 5% to $231 billion by the end of 2021, led by the fixed-income and M&A businesses. >more


Capital Market Expectations

UBS

SLOWER GROWTH AND MARKET PERFORMANCE: FIVE-YEAR CAPITAL MARKET EXPECTATIONS

UBS Asset Management’s Investment Solutions team conducts ongoing macroeconomic research to develop our baseline five- and 10-year return expectations. Drawing on the breadth and depth of expertise provided by more than 100 professionals and an over-36-year asset management track record, our capital market expectations quantify risk/return expectations for a broad set of asset classes, incorporate current market and economic conditions and provide a key component for modeling a portfolio’s strategic asset allocation. >more


Transforming Business

Bain & Company

TRANSFORMING BUSINESS FOR A SUSTAINABLE ECONOMY

Climate change, unfair labor practices, corruption and other sustainability issues have become daily fixtures in newspaper headlines—and are rapidly taking their place alongside financial targets as top CEO priorities. Yet, the more that leaders work toward their early sustainability commitments, the more they discover how much further they need to go to prepare for a future where competitiveness and sustainability are inseparable. As sustainability best practices become more widely adopted, pioneering firms are taking a giant leap. They are pursuing the next practices that will allow them to achieve step changes in their business while helping to deliver a truly sustainable next economy. We believe that those who move first will unlock significant business benefits. >more


Ranking and Market Capitalisation

PwC

GLOBAL RANKING OF THE TOP 100 PUBLIC COMPANIES BY MARKET CAPITALISATION

This unique report ranks the top 100 global companies by market capitalisation and compares how the list has evolved since 2018 and over the past ten years, from March 2009 to March 2019. It identifies the risers and fallers, looks at regional and sector dynamics and provides a view on how the global landscape has changed. >more


Cybersecurity Incentives for Investments

The World Economic Forum

INCENTIVIZING RESPONSIBLE AND SECURE INNOVATION PRINCIPLES AND GUIDANCE FOR INVESTORS

This report proposes an innovative focus on cybersecurity incentives for the investment community. Investors in innovation and technology-driven companies have a responsibility to ensure that cybersecurity is given priority in the early stages of product development. By ensuring cybersecurity from the outset – including features like security-by-design and security-by-default – investors can increase the likelihood of company success in the long term, promote more durable technology and improve overall cyber resilience. This report proposes principles for investors that will raise their internal cybersecurity awareness and offers a complete framework enabling investors to assess the cybersecurity preparedness of their target company. >more


Development Banks

Roland Berger

HOW DEVELOPMENT BANKS CAN CLARIFY AND REALIGN THEIR MISSIONS

Development banks play an important role to combat the absence or failure of market mechanisms, advance specific public policy goals or support wider social and economic development in their countries. Although this model has a successful track record megatrends such as digitalization, globalization, climate change and migration giving rise to new priorities and change the market environment development banks operate in. Therefore they have to adapt too. Times are changing – and so are the challenges that development banks have to face. >more


Banking and Profit

Oliver Wyman

PROFITABILITÄTSSTEIGERUNG IM BANKEN-, PRIVAT- UND GEWERBEKUNDENSEGMENT

The private and commercial customer segment in Germany will remain challenging for the majority of market participants in 2019. Parallel to the sustained change in market structures, the available revenue pool is stagnating at around EUR 60 billion and is forcing profitable bank participants, e.g. in the direct banking segment, to continuously develop their business and operating models. >more


Cost-Cutting Measures

Deloitte

WACHSENDER DRUCK UND NEUE ANSÄTZE: DELOITTE–STUDIE 2019 ZUR STRATEGISCHEN KOSTENTRANSFORMATION IN DEUTSCHLAND

Restructuring, job cuts, divestments: German companies are increasingly reacting to the gloomy economic situation with cost-cutting measures. But the will to save is not enough. As the current Deloitte study on cost management shows, the measures only achieve the savings targets they have set themselves in 11% of the cases. One explanation for this problem lies in the conservative, incremental approach to cost reduction in many companies in Germany. For an effective and at the same time forward-looking cost transformation, on the other hand, it is advisable to take the step towards courageous, disruptive measures.  >more


Cryptocurrencies

Accenture

THE (R)EVOLUTION OF MONEY: BLOCKCHAIN EMPOWERED CRYPTOCURRENCIES

The rapid price movements of Bitcoin, Ether and Ripple have fueled headlines across the globe recently. With this price volatility, it’s fair to say that blockchain powered digital currencies may not be ready for prime time. But their disruption of the current financial system is inevitable. Cryptocurrencies are creating a money revolution. The Accenture report “The (R)Evolution of Money: Blockchain Empowered Cryptocurrencies” takes an in-depth look at how cryptocurrency will disrupt the market as we know it and provides a road map for central banks and leading financial institutions to help lead this money revolution. >more


Digital Transformation and Financial Sector

Oliver Wyman

DIGITAL TRANSFORMATION OF THE FINANCE FUNCTION

Oliver Wyman - Driven by the advancing digitalisation, there is a risk for the finance function that it will be downgraded to a support function. By redefining value contribution, the financial sector can seize the opportunities offered by digitization to become a digital driver that shapes the digital landscape of the entire enterprise. This study offers practical insights and practical steps on how finance can become the digital driver of a company. From our perspective, it's about communicating the vision clearly, strengthening agile teams, leveraging the opportunities of Big Data and AI, starting small and growing fast. >more


Global Fintech 2019

Ernst & Young

GLOBAL FINTECH ADOPTION INDEX 2019

Financial technology (FinTech) adoption among consumers has nearly doubled over the past 18 months, according to the latest EY Global FinTech Adoption Index, and the adoption rate is growing faster than anticipated. Globally, 64% of digitally-active consumers across 27 markets use FinTech, and awareness is even higher. This year, the EY organization added the first-ever Small and Medium-Sized Enterprise (SME) FinTech Adoption Index given FinTech’s expansion beyond consumers. EY member firms surveyed more than 1,000 organizations in five countries and found that one-quarter of organizations have used at least one FinTech across the following four categories in the past six months: banking and payments, financial management, financing and insurance. >more


Robo Advisers

Bain & Company

ROBO ADVICE HAS STALLED, BUT WEALTH TECHNOLOGIES STILL HOLD PROMISE

The wealth management industry has been under significant profit pressure since the global financial crisis. The disruptive threat from robo advisers has not occurred, and the promise of vastly more assets under management by robo programs has not materialized. Instead, wealth technologies are starting to gain traction for the next generation of hybrid adviser-based solutions. >more


Fintech H1 2019

KPMG

THE PULSE OF FINTECH: H1 2019

Both the number of global fintech deals and the total global investment in fintech dropped in H1’19, driven primarily by the lack of mega deals like 2018’s $14 billion raise by Ant Financial and the $12.9 billion acquisition of Worldpay by Vantiv. Despite the lack of blockbuster deals, the fintech market globally remained relatively strong and well poised for growth. >more


Bank Performance

Bain & Company

WHY BETTER PERFORMANCE MANAGEMENT SPURS BANKS TO DELIVER MORE VALUE

Large banks in Europe and Asia-Pacific are under pressure from investors to deliver more value and from regulators to justify their business models. Their returns on equity and price-to-book ratios lag their peers in North America. For most banks, the way they manage performance is not up to the task. Too often, performance management is fragmented among business units and regions, which makes it difficult to optimize profitability or create value for the entire group. >more


Rules for Venture Capital

Bain & Company

FIVE THINGS COMPANIES GET WRONG ABOUT CORPORATE VENTURE CAPITAL

Hundreds of companies are setting up corporate venture capital arms, hoping to tap into the foresight, energy and promise of technology innovators. Unfortunately, many squander the opportunity by managing these VC efforts the same way they would manage an M&A or business development unit—that is, too cautiously. Venture capital works best when it plays by a set of rules that are higher risk than most corporate executives are used to. VCs invest in innovations that are far from product-ready, and many fail to pan out—the price of developing unproven ideas. Corporate VC executives must be given latitude and permission to risk failure. >more


Global Crisis 2019

PwC

GLOBAL CRISIS SURVEY 2019

PwC’s first-ever Global Crisis Survey is the most comprehensive repository of corporate crisis data ever assembled. PwC heard from 2,084 senior executives in organisations of all sizes, in 25 industries, and across 43 countries — 1,430 of which had experienced at least one crisis in the past 5 years, for a total of 4,515 crises analysed overall. What they found out is game-changing. By delving deep into the real-world experiences of organisations like yours, they uncovered some surprising findings, many of which turn the basic notion of crisis management – in fact, how we even think of crisis – on its head. >more


Corporate Treasury and Technology

Deloitte

DRIVING THE CHANGE – TECHNOLOGISCHE TRANSFORMATION IM CORPORATE TREASURY

In recent years, the technology-driven transformation of Corporate Treasury has gained rapid momentum due to the enormous development of products and innovations. With extensive functional enhancements to treasury management systems, complex analysis and forecasting options, extensive data visualization options and automation technologies, the treasurer is provided with a whole range of powerful new tools to meet the dynamic requirements of digitization and further develop the treasury. >more


AI and Financial Services

Roland Berger

AI AND FINANCIAL SERVICES: HOW BANKS AND INSURERS CAN TACKLE THE BIG BUZZ

Artificial intelligence has become a very real part of life. Also, the financial services industry is no stranger to the technology. As in other industries, the possibilities in financial services are many and varied, but most companies are just getting started with a process that is set to turn the industry on its head. Many banks and insurance companies are busy testing use cases such as chatbots and AI-based fraud detection solutions. But now it is time to launch the next phase: financial service firms need to develop a clear path forward on how to successfully integrate AI into their business model. >more


Insurtech 2019

Oliver Wyman

ZUKUNFT VON INSURTECH IN DEUTSCHLAND: DER INSURTECH-RADAR 2019

What trends and changes are observable in the InsurTech industry this year? Oliver Wyman examines this question in the current "InsurTech-Radar 2019" and sheds light on what developments have taken place since the last radar at the end of 2017, how the market potential and chances of success for start-ups are and what forecasts Oliver Wyman is making for the future of InsurTech. >more


Board Diversity

Mergermarket / Toppan Merrill

THE RISING IMPORTANCE OF BOARD DIVERSITY

Many prominent shareholders, such as institutional investors and PE firms, are putting pressure on the companies they own to report on the diversity characteristics of their board members and to increase the number of women and other groups on their boards. And while many companies are responding to this pressure and creating roadmaps to improve their board diversity, significant barriers remain. To find out how companies are currently approaching the issue of board diversity, Toppan Merrill commissioned Mergermarket to speak with three leading experts as well as one public company executive. >more


Bank Strategies

Deloitte

DIE ZUKUNFT DER FINANZFUNKTION IN BANKEN

The advancing digitalisation increasingly influences our daily routine, our communication behaviour and the networking of markets, companies and customers. At the same time, new competitors are entering the market who are agile and data-based in order to offer customers a positive and comprehensive experience with new services and products. Banks must therefore adapt their strategies and business models. What consequences will this have for the future of the finance function in banks? >more


Global Wealth

Oliver Wyman / Deutsche Bank Research

GLOBAL WEALTH MANAGERS: OUT OF THE PIT STOP - INTO THE FAST LANE

Oliver Wyman and Deutsche Bank have released their fourth annual wealth management report, in which they provide an overview of recent industry trends and the outlook for future developments. Wealth managers faced growing headwinds in 2018, with global high-net-worth wealth growth slowing to 4 percent. Lower AuM growth, more challenging markets and continued fee compression led to declining wealth management business valuations. The revenue pressure felt by wealth managers in late 2018 highlights the continued vulnerability of operating models to market stress. The rebound in early 2019 brought short-term relief for some but further pressure is inevitable as the end of the cycle approaches – wealth managers must take action. >more


Banking and Artificial Intelligence

Deutsche Bank Research

ARTIFICIAL INTELLIGENCE IN BANKING: A LEVER FOR PROFITABILITY WITH LIMITED IMPLEMENTATION TO DATE

Artificial intelligence (AI) is a significant step forward in the digitalisation and transformation of modern businesses. Investors are lining up to be part of the imminent change. AI attracted USD 24 bn in investments globally in 2018, a twelvefold increase since 2013. Within Europe, Germany, France and the UK are the frontrunners in experimentation and in the implementation of AI. Similar to earlier examples of information technology (IT) implementation in financial services, AI promises great efficiency gains and potential revenue increases and its potential contribution to bank profitability should not be underestimated. >more


Global Wealth

The Boston Consulting Group

GLOBAL WEALTH 2019: REIGNITING RADICAL GROWTH

The steady rise in global wealth growth came to a sharp halt in 2018. Gains in global personal financial wealth tumbled by more than 5 percentage points year on year, the weakest performance in the past half-decade. The fourth-quarter dip in major stock indexes pulled down equities and the large regional portfolios tied to them. High valuation levels, geopolitical risks, and the challenges of returning to normal interest rate levels also contributed to the decline. >more


Corporate-Startup

The Boston Consulting Group

AFTER THE HONEYMOON ENDS: MAKING CORPORATE-STARTUP RELATIONSHIPS WORK

Accelerating market forces are pressuring even well-established companies to innovate and tap new markets in order to stay ahead of the competition. While many corporates have been content to pursue internal, incremental change in response to global competition and disruptive technologies, others have boosted their innovation engines by collaborating with startups. These relationships give corporates access to startups’ creativity, new ways of working, and proficiency with new technologies. Such relationships often start out very positively, with a heady honeymoon period during which both sides enjoy some early successes. Over time, however, frustration can set in as one or both partners wake up to the reality that they are not achieving all of their hopes and expectations. >more


Largest Companies Worldwide

Ernst & Young

TOP 1.000 WELT: DIE WELTWEIT UMSATZSTÄRKSTEN UNTERNEHMEN

While the largest North American companies were able to increase their sales by an average of 9.0 percent last year, the sales growth of major European companies averaged only 4.3 percent. Asia's large companies achieved growth of 8.4 percent. And Europe's top companies are also losing ground in terms of profit growth: in 2018, they were only able to increase their operating profit by 3.9 percent, while the US and Asian groups grew more than twice as fast at 8.1 and 9.8 percent, respectively.  >more



European Retail Banking

Strategy&

GETTING THE BALANCE RIGHT: HOW EUROPEAN BANKS CAN MAXIMIZE THEIR FULL POTENTIAL IN RETAIL

A decade after the financial crisis, many European banks are still struggling in their retail businesses with an environment of low interest rates, a shrinking branch network, stiff competition and high acquisition costs for new customers. Such pressures have banks focused largely on maintaining a low cost-to-income ratio (CIR) – that is, keeping costs as low as possible while trying to grow market share. This approach has led banks to focus insufficiently on “per customer” performance metrics, which are a better measure of profitable long-term customer relationships with staying power. That is important, because doing higher margin business with existing customers is the most promising path to profitable growth over the long term. >more


Digital Finance

White & Case

RISE OF DIGITAL FINANCE: TOKENISING MINING & METALS ASSETS

Rapid advances in blockchain technology are reinventing the way companies operate and deliver products and services to their clients. These changes are particularly visible in the mining & metals industry, a sector that has been traditionally slow in adopting technological innovations. Yet blockchains and smart contracts, which to this point the sector has focused on as a source of productivity and transparency gains for the mining & metals global supply chain, could herald new sources of finance too. Miners face a persistently challenging environment to raise equity and equity-like capital to fund ventures. >more


Commodity Trading

Oliver Wyman

COMMODITY TRADING GOES BACK TO THE FUTURE

The combination of unprecedented political uncertainty, trade wars, and rapidly evolving technologies is making commodity markets almost as unpredictable as they were during the financial crisis. But the chances of repeating the industry’s most profitable year to date are remote. Black and grey swan events will continue to result in intermittent spikes in volatility. But these will only provide temporary relief from the relentless erosion in trading margins that started in 2014. In fact, we estimate margins could likely decline by at least another 15 percent over the next five years as commodity markets become more stable and more transparent and competition becomes more intense. >more


Insurtechs

Bain & Company

INSURTECHS ON THE RISE

The digital revolution that has upended so many industries has been relatively slow to take hold in life and health insurance. But things are changing. In all the world’s major markets, insurtechs are springing up to challenge incumbent life and health insurers. While the number of life and health insurtechs is still small, it is growing rapidly, posing a significant threat to established players. >more


Global Pensions

J.P. Morgan

GLOBAL PENSIONS ASSESS A CHANGING INDUSTRY

As institutions move from traditional Defined Benefit (DB) to Defined Contribution (DC) plans, trustees and board members are striving to increase participation and engagement while still retaining a strong focus on meeting their funding obligations. Plan design, corporate governance and the changing attitudes of millennials also put performance, transparency and ESG in the spotlight. Our polling reflects the views of representatives from 56 institutions, representing 14 countries and nearly US$1.2 trillion in pension assets. >more


Private Markets

BlackRock

THE CORE ROLE OF PRIVATE MARKETS IN MODERN PORTFOLIOS

Making effective use of private assets is increasingly important for institutional investors. Our work indicates that many of them have room for relatively large allocations, depending on risk tolerance and their specific objectives. With private equity in particular playing a key role in many portfolios, we also offer a new method of estimating PE returns. >more


Banking Survey

Deloitte

BANKING-ANALYTICS SURVEY

German banks and financial institutions are undergoing digital upheaval and are confronted with regulatory challenges. Ad-hoc enquiries and reporting are a central focus here and can be constantly simplified through the use of data analytics tools. The Banking-Analytics Survey focuses on the German banking market and surveys the current situation, the possible uses of analytics tools, necessary prerequisites for the integration of analytics solutions as well as the organizational embeddedness. The survey was conducted for the first time in Germany. For this, the assessments and expectations of top management (CEO, CFO, etc.) and IT executives of German financial institutions were collected. >more


DACH CEO Success Study 2018

Strategy&

CEO SUCCESS STUDY 2018

With 48 new CEO positions to be filled in 2018, companies in the DACH region were faced with a particularly large number of management turnovers, which increased the ratio from 15.3% to 16.0% compared to last year. At the same time, the proportion of turnovers in the German-speaking countries is the third lowest of all regions worldwide. 71% of the resignations were planned, 8% were due to takeovers and 21% were premature resignations. In the 300 largest listed companies in the DACH region, the average length of a CEO's stay increased from 6.2 to 6.6 years. As in the last three years, there was only one newly appointed female CEO in the three German-speaking countries.  >more


European CFO Survey

Deloitte

EUROPEAN CFO SURVEY: EYES ON DEMAND

The flow of worrying economic and political news that characterised the second half of 2018 has dwindled since the beginning of 2019. Yet, according to the results of the latest European CFO Survey, businesses in Europe remain wary. The latest report shows how expectations surrounding the development of key business metrics has deteriorated further from six months ago. Companies are less willing to invest and add to their workforce, and a decline in demand and weak overall economic outlook are now the main concerns for CFOs in Europe. On top of this, the outlook for the evolution of revenues and operating margins over the next 12 months is darker than six months ago. >more


Operational Resilience

Oliver Wyman

STRIVING FOR OPERATIONAL RESILIENCE: THE QUESTIONS BOARDS AND SENIOR MANAGEMENT SHOULD ASK

Operational resilience is the ability of an organization to continue to provide business services in the face of adverse operational events by anticipating, preventing, recovering from, and adapting to such events. The fundamental principle is “bend, but don’t break.” Achieving operational resilience is inherently challenging given the increasing complexity of processes, technology infrastructure, and organizational silos. However, the business benefits go beyond pure risk and compliance, often forming an inherent part of a firm’s value proposition. >more


Asset Manager

The Boston Consulting Group

HOW ASSET MANAGERS CAN WIN IN A WINNER-TAKES-ALL WORLD

Making hay while the sun shines is a breeze. The real test is in doing the same when the weather turns stormy. After several years of stellar performance, the asset management industry found in 2018 that it had to adjust. Bouts of financial-market volatility, tightening monetary policy, and slowing global growth created a more challenging environment. >more


Coporate Governance and Institutional Investors

Rothschild / Deutsches Aktieninstitut

ESG FROM THE PERSPECTIVE OF INSTITUTIONAL INVESTORS - WHAT LISTED COMPANIES SHOULD KNOW

Besides the usual financial criteria, environmental and social topics, as well as corporate governance, are becoming ever more important to institutional investors when valuing companies and making investment decisions. A study released by Deutsches Aktieninstitut and Rothschild & Co affirms this trend. The study “ESG from the perspective of institutional investors - what listed companies should know” is based on extensive interviews with 18 international institutional investors, managing c. €14.4 trillion in assets and includes ten of the Top 20 investors in the DAX and MDAX. >more


European Banking

Deutsche Bank Research

HOW TO FIX EUROPEAN BANKING...AND WHY IT MATTERS

The performance of the Eurozone economy is inextricably linked to the health of its banking system. That means the economy will likely stagnate unless European banks can build robust balance sheets, earn a competitive return on equity, and generate adequate capital to support faster growth and innovation. European policymakers must make bold decisions as there are serious doubts as to whether the continent’s banks can compete internationally with US institutions. This paper takes a careful look at the European banking system and suggests a number of remedies to improve the sustainability of its returns for the good of the economy and taxpayers. >more


Brexit and Financial Services Industry

Deloitte

RESPONDING TO BREXIT IN THE FINANCIAL SERVICES INDUSTRY

The United Kingdom will leave the European Union (EU) and several credit institutions in 2019 and investment firms still need to finalise their Brexit-projects to establish a third country branch or subsidiary in the EU to be able to access the European Single Market after Brexit. This White Paper addresses typical regulatory differences and implementation challenges that need to be considered in the context of founding a new bank or investment firm in Germany. >more


Carbon Risks

Deloitte

CLIMATE FINANCE – GEEIGNETE ANSÄTZE ZUR BEWERTUNG VON CARBON RISIKEN

Climate change is currently not only present on the global political agenda, but the consideration of climate risks is also gaining importance in the valuation of assets. For this report, Prof. Dr. Martin Hellmich, a Deloitte partner responsible for the valuation of securities in the area of Audit & Assurance, works together with Prof. Dr. Rüdiger Kiesel, professor for Energy Trading and Finance at the University of Duisburg-Essen, on the identification of quantitative approaches and their extension, in order to take into account carbon risks in the valuation of assets. >more


Asset Managers and Wholesale Banks

Morgan Stanley / Oliver Wyman

ASSET MANAGERS & WHOLESALE BANKS – SEARCHING FOR GROWTH IN AN AGE OF DISRUPTION

Asset managers and wholesale banks are under increasing investor pressure to accelerate growth while managing down costs. Yet both are facing falling margins and a market environment that is disappointing relative to expectations. Fundamental shifts in market structure and client behaviour mean that firms with the weakest starting point are increasingly disadvantaged. They will have to balance competing demands to defend core markets with the need to follow the money and find long-term growth. The cost of catching up is increasing. >more


Banking and Capital Markets Trends 2019

PwC

BANKING AND CAPITAL MARKETS TRENDS 2019

Emerging technologies are revolutionising customer intelligence, engagement and experience within both corporate and retail banking. Yet it’s people who drive enterprise transformation and ultimately derive the value. This manifests itself in everything from the empathy and creativity to understand and meet changing customer demands to your workforce’s readiness to embrace change and capitalise on the opportunities. It’s therefore concerning that so many of the 235 Banking and Capital Markets (BCM) CEOs taking part in PwC’s 22nd Global CEO Survey believe that this vital human element of transformation is falling short. Nearly 80% see skills shortages as a threat to their growth prospects. Their ability to innovate effectively and provide a winning customer experience is suffering as a result. >more


German Gender Diversity 2018

The Boston Consulting Group

(EM)POWER WOMEN: BCG GENDER DIVERSITY INDEX DEUTSCHLAND 2018 - WO CHEFETAGEN IN SACHEN VIELFALT STEHEN

Germany's executive floors are still extremely male-dominated: in the 100 largest German listed companies there are only two female CEOs and just seven percent female board members. On the supervisory boards of these companies, every third member is now a woman. Five out of 100 supervisory boards have a female chairman. This means that the proportion of women at the top of companies - board members and supervisory board members combined - is still a low 19 percent. One could say that progress in Germany is slow at best. This is shown by the results of the BCG Gender Diversity Index 2018, presented by the Boston Consulting Group in cooperation with the Technical University of Munich. >more


Fixed Income Study 2019

Invesco

INVESCO GLOBAL FIXED INCOME STUDY 2019

Our second global fixed income study provides insights on the views, opinions and experiences of 145 fixed income specialists, across pension funds (both defined benefit and defined contribution), sovereign wealth funds, insurers and wholesale investors including private banks, diversified fund managers, multi-managers, and model builders. With the end of the cycle considered to be in sight and some seminal changes to consider in relation to the construction of global fixed income assets and their role in wider portfolios, fixed income investors are facing more challenging conditions ahead. >more


Divestment Study 2019

Ernst & Young

GLOBAL CORPORATE DIVESTMENT STUDY 2019

While geopolitical uncertainty dominates the headlines – from tariffs to trade wars, Brexit to border control – European companies are embracing divestment to strengthen their competitive edge and execute on their transformation agenda. According to the EY Global Corporate Divestment Study, 84% of European companies surveyed intending to divest within the next two years (the majority planning to do so in the coming 12 months), with the intent to streamline operating models for better agility. >more


German VC and Start-ups 2018

Ernst & Young

TECH START-UPS RESHAPING THE ECONOMY: VENTURE CAPITAL AND START-UPS IN GERMANY 2018

Since their foundation, the 100 largest German tech start-ups have been able to collect 8.1 billion US dollars from investors. The Auto1 Group is at the top of the rankings, having collected almost 1.1 billion US dollars since its foundation. Interestingly, there is a strong focus on the financial sector: one in five (21 companies) among the top 100 start-ups is a FinTech (previous year 14). >more


Banks, Insurers and Digital Mastery

Capgemini Research Institute

WHERE ARE BANKS AND INSURERS ON THEIR DIGITAL MASTERY JOURNEY?

The financial services industry stands at a crossroads and dark clouds of disruption are brewing overhead. As consumers become more connected and tech-savvy, FinTech and InsurTech upstarts edge their way onto the center stage, and new technologies and the sharing economy increasingly define our daily lives, banks and insurers must develop new value propositions to compete and prosper. The key to doing so is focusing on both leadership and digital capabilities – a status we call “digital mastery.” Our latest research shows fewer than one-third (30%) of financial services firms have thus far attained digital mastery. >more


European Bank Profits

Deutsche Bank Research

EUROPEAN BANK PROFITS RISE TO POST-CRISIS PEAK DESPITE LOWER REVENUES IN 2018 - CAPITAL RATIOS DOWN FOR THE FIRST TIME

In 2018, net income at the major European banks climbed to its highest level since the financial crisis. Lower administrative expenses and a further fall in loan loss provisions to multi-year lows more than made up for a decline in revenues. Whereas net interest income stabilised, fee and commission income as well as trading income declined. >more


Blockchain

J.P. Morgan

BLOCKCHAIN AND THE DECENTRALIZATION REVOLUTION: A CFO’S GUIDE TO THE POTENTIAL IMPLICATIONS OF DISTRIBUTED LEDGER TECHNOLOGY

With the advent of blockchain and increased adoption, J.P. Morgan’s Corporate Finance Advisory team, in conjunction with J.P. Morgan’s Digital Investment Banking team and Blockchain Center of Excellence, provides an informed view on the corporate implications of the rapidly changing interplay between finance and blockchain technology. Although the use of blockchain in the enterprise remains mostly in the proof-of-concept stage, CFOs and financial executives should continue to periodically evaluate the latest blockchain developments. >more


Global Pension Assets

Thinking Ahead Institute

GLOBAL PENSION ASSETS STUDY 2019

The Thinking Ahead Institute's Global Pension Assets Study 2019 covers 22 major pension markets (the P22), which now total USD 40,173 billion in pension assets and account for 60% of the GDP of these economies. The study also looks at the seven largest markets (the P7) which include Australia, Canada, Japan, Netherlands, Switzerland, UK and US and comprise 91% of total pension assets. >more


Robo-Advisors

Deutsche Bank Research

GERMAN ROBO-ADVISORS: RAPID GROWTH, ROBUST PERFORMANCE, HIGH COST

Robo-advice is a new breed in asset management. Robos’ assets under management have been growing quickly in Germany. However, the market is increasingly becoming concentrated and competitive. Robo portfolios have shown relatively robust performance recently. Yet the high costs of robo-advice in Germany are a drag on returns and may alienate potential customers. Current clients, meanwhile, are mostly middle-age, higher-income men rather than millennials. >more


Institutional Investors

MSCI

ESG TRENDS TO WATCH IN 2019

ESG institutional investors face both pressing challenges and opportunities in 2019. The report highlights five of them: how to deal with the significant amount of plastic waste generated; regulations focused on ESG investors; the earlier-than-expected effects of climate change; the big signal revolution and the role of corporate leadership in the age of transparency. >more


Global Market Outlook 2019

STATE STREET GLOBAL ADVISORS

2019 GLOBAL MARKET OUTLOOK: NOT OVER UNTIL IT'S OVER

As investment challenges grow more complex, the Global Market Outlook is designed to alert investors to portfolio risks and opportunities in the coming year. Research around near-term and longer-term market issues is at the heart of who we are as investors. It drives the kinds of outcome-oriented portfolios we create for clients, drawing on the full range of our beta and alpha solutions as well as our asset-allocation expertise. >more


Global CEO Survey

PwC

22ND ANNUAL GLOBAL CEO SURVEY: CEO'S CURBED CONFIDENCE SPELLS CAUTION

The optimism of top managers is curbed: last year, CEOs worldwide were more optimistic than ever before. Now, one year later, 29 percent expect global economic growth to decline in the next twelve months (previous year: 5 percent). This year, 42 percent (previous year: 57 percent) are confident that the global economy will grow faster than in the previous year. >more


Financial Services Industry 2019

Oliver Wyman

THE STATE OF THE FINANCIAL SERVICES INDUSTRY 2019

For an industry whose product – the movement and storage of money and the management of risk – is electronic, financial services processes are manually intensive. Surveys show that customers are rarely inspired by the service and yet the consensus is that a digital overhaul of legacy systems will be the work of many years. At the same time, new businesses underpinned by digital capabilities are gaining traction. Imagine if you could combine what is possible in a new build with the business model advantages of an existing firm. In the 2019 edition of our State of Financial Services report we examine the potential for the industry to start again and point to the first steps in the journey – "go build!" >more


Private Assets in Institutional Portfolios

PGIM

THE TRADEOFF BETWEEN LIQUIDITY AND PERFORMANCE: PRIVATE ASSETS IN INSTITUTIONAL PORTFOLIOS

Are investors sacrificing too much portfolio performance in the name of liquidity? Investors may wish to increase allocation to private assets with their potentially greater returns and diversification benefits, but worry that these assets are too illiquid to generate sufficient cash when needed. How can investors measure the tradeoff between liquidity and performance to determine their optimal mix of private and public assets? PGIM’s IAS team presents an asset allocation framework that investors can use as a tool to answer this question. >more


European Banks in 2019

Deutsche Bank Research

EUROPEAN BANKS: OPERATING STRUGGLES AND SOME EXTERNAL HEADWINDS

Banks in Europe face a more difficult business environment in 2019 than last year. While the macro environment is still decent, momentum is cooling markedly. In addition, prominent political risks loom dangerously. On the operating side, banks are treading water. Their limited cost savings are being fully absorbed by declining revenues, and balance sheets continue to shrink despite a moderate pickup in lending. Profitability and capital levels are both stagnating. Only in a benign economic and political scenario will banks be able to return to growth this year. >more


Banking

Group of Thirty (G30)

BANKING CONDUCT AND CULTURE: A PERMANENT MINDSET CHANGE

2018 marks the tenth anniversary of the global financial crisis. Since then, the industry has devoted significant time and resources to understanding the underlying causes of its cultural breakdowns, and to implementing reforms needed to address the issues. And yet, throughout the last decade, and despite significant efforts, the industry has continued to be dogged by conduct scandals and failures of culture and governance. Trust in banks remains low. And at the same time, the scope of the issues has grown. As a result, banks have endeavored to implement various changes to improve their conduct and culture. The report focuses on two fundamental questions: 1) How much progress has the banking industry made in conduct and culture ten years on from the global financial crisis; and 2) In what areas should banks continue to press on, and what evolving questions should they be mindful of going forward? >more