"Are Banks Essential in a Modern Economy” 

On Friday, 4 April 2014, Matthias Stockburger gave a talk titled “Are Banks Essential in a Modern Economy” as part of the ongoing MIF Guest Speaker Series. In this talk he pointed out the diverse banking services offered and discussed which of those are essential for a modern economy and new players entering these markets.

Matthias, a relationship manager at the Commerzbank AG, stressed the importance of the “traditional” banking business for society: the capital allocation by taking in deposits and making loans. In such a way banks transform maturities, diversify risks and are essential to our modern economy. In addition, banks have a strategic advantage to other forms due to their extensive experience and large network.

Moreover, banks reap most of their profits from this traditional business, opposed to public opinion, which often sees investment banking and other consulting services as a main source of profit. However, he pointed out that especially in the advisory business banks face a tough competition: family offices and other market players offer similar services, often with similar quality. He feels that new forms of financing, such as crowd-funding, will increase but remain a niche business.

In a lively Q&A session, the audience discussed new players entering the private deposit market: for example the Chinese internet giant Alibaba, which offers high interest deposit for customers and thus entered in direct competition with banks. Furthermore the audience discussed new forms to enter the market, for example how Deutsche Bank use the network of other industries, in this case the insurance company Allianz, to directly get in contact with potential customers.

Sheets 

If you are interested in receiving the sheets then please send an email to: admissions-mif@uva.nl