(FS.1.00) Investment Banking

[New] In the next five years, the HKU-SCF FinTech Academy will gear up nearly a thousand fintech professionals to tackle disruptive technologies, creating a tangible and lasting impact on the banking and financial industry.
[New] Fintechs have long proved how nimble and effective they can be, with analysis from PwC suggesting that technological changes in the banking sector could bring a boost of more than £34.6bn to the UK economy by 2030.
[New] Over the next decade, €1 trillion will be mobilised through national co-financing, private investment, and support from the European Investment Bank to support the Green Deal..
[New] This year will be one of continued disruption and evolution in banking technology as providers continue to innovate in response to customer demand.
Technology has caused no shortage of geopolitical disruption over the last half-decade; now Europe is banking on technology making it geopolitically relevant again.
The World Bank trimmed its global growth forecasts slightly for 2019 and 2020 due to a slower-than-expected recovery in trade and investment despite cooler trade tensions between the United States and China.
The Monetary Authority of Singapore continues to drive financial services innovation through the availability of banking licenses for FinTech firms, with a focus on exploring the opportunities for application programming interfaces (APIs) to expand the market's Open Banking capabilities.
Expect 5G business to ramp in the United States in the second part of the year, especially now that the merger uncertainty around T-Mobile and Sprint has been resolved.
Within the umbrella financial businesses category, the top-spending sub-verticals for 2020 local advertising are expected to be Auto & Direct Property Insurance ($4.0 billion), Investment and Retirement Advice ($3.8 billion) and Commercial Banking ($3.6 billion).
From 2017 to 2022, Sectors that are predicted to experience the fastest growth in security spending include state / local government (11.9%), telecommunications (11.8%), resource industries (11.3%), banking (10.4%), federal / central government, and other industries.
The World Bank and the IMF have taken stronger positions on climate action, while the European Investment Bank has started referring to itself as Europe's climate bank and has undertaken to devote 50% of its financing to climate action and environmental sustainability by 2025.
The European Investment Bank (EIB) plans to stop funding oil, gas and coal projects at the end of 2021, a first-of-its-kind move for an investment bank.
The movement toward open banking and open APIs will only increase the speed of change as fintech business models and technologies allow them to align with new opportunities very quickly.
The World Bank projects that within five years, remittances will outstrip overseas aid and foreign direct investment combined, reflecting the extent to which global financial flows have been reshaped by migration.
European GDP is expected to contract even more than than the US this year, and there are concerns about the strength of the euro area's banking sector.
Interest rate cuts and quantitative easing announced by the South African Reserve Bank will provide some support to consumer spending and encourage lending and investment.
Investment bank Credit Suisse is now predicting that the Mexican economy will contract 4% this year while the Bank of America anticipates that GDP will shrink by 4.5%.
As well as the UK government putting cash in, the European Investment Bank is pumping hundreds of millions of euros into an Italian programme to produce fusion energy by 2050.
The European Union plans to turn the European Investment Bank (EIB) into a climate bank, which means the EIB will gradually increase the share of its financing dedicated to climate action and environmental sustainability to reach 50% of its operations in 2025.
On account of the presence of a huge population underserved by banking facilities and lenient regulatory requirements, China, by 2025, is expected to become one of the biggest players in the Neobank market.
The UK lending space is dominated by Lloyds Banking Group, Barclays, and RBS Group - a trend that is anticipated to continue over the coming years.
HSBC and other traditional lenders will need to offer more digital banking products and services to compete for a tech-savvy, younger generation of customers.

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Last updated: 28 May 2020