Industry Analysis & Industry Trends
When the subprime crisis hit investment banking in late 2007, it caused billion-dollar losses for many major US and European banks. It also marked the beginning of a period of change for the Global Investment Banking & Brokerage industry in terms of regulation, consolidation and activities. Industry revenue is estimated to have plummeted by 61.5% in 2008. In addition, profit margins fell from about 30% to about 10%. Some of the largest industry players collapsed or were acquired by other companies. The major centers of investment banking activity, the United States and Europe, were most affected, while the banking systems of the Asia-Pacific region and developing economies were relatively unscathed... read more
Industry Investment
Industry participants have increased their investments in technology in an attempt to improve efficiency and lower costs of processing and administration. One factor that has positively affected these areas is the increased development of online services. The efficiency gain is clearly visible through the cost of transactions online compared with traditional brokerage costs. However, labor costs are still a considerable expense as research and advice remain the major activities in the industry. Such activities are performed by highly skilled and experienced staff members, requiring compensation in excess of average wages... read more