how do investment banks remain competitive??

Question

given the current climate what do you think Deutsche bank should do to remain competitive???

Answer 1

I believe investment banks can remain competitive by leveraging on economies of scale. In short, they have to grow geographically while maintaining their overhead costs at a minimum. However, they should extend their market reach so that their client base will be larger. In this case, they will have larger revenues while still maintaining low costs, thus increasing their profit margins.

DB can remain competitive by doing their Corporate Finance deals whether in M&A and restructuring, or securities underwriting with more clients. Not only should they cater to the large corporations, but they should also expand their reach to the smaller companies and micro businesses. Banking has been a commodity due to the competition, and a bank cannot differentiate itself anymore. The only way is to grow its market base.

Answer 2

I thunk investment banks are earning there monet from very diverse business areas such as M&A, trading, IPOs, corporate finance, etc...
Therefore it depends on the strategy of the bank where to focus. But I think the most generic hint would be to retain the best talent. That is so crucial when dealing with lots of money and big customers.

Answer 3

Do alot of advertising