Gregory Noonan’s Post

Thanks Nicole Goodkind with CNN for chatting with me about the changing dynamics in the banking industry. In the story, we discuss the challenges of leading a bank in today’s high-inflation and high-interest rate environment - one that hasn’t really been experienced in decades. I highlighted the importance of strong leadership, soft skills, and strategic ambition to adapt to this new environment. Read the full article to learn more about the evolving landscape of banking. #banking #restructuring #leadership

Reputation is no longer one challenge among many; it is now ‘the’ challenge. As Carl von Clausewitz, the 19th Century military strategist, noted in his major work, On War (Vom Kriege), in strategy few things are as important as concentration or focus: to establish one’s army (resources and capabilities) so that, instead of being weak in many places, it will be strong in a few places. Corporate reputation is the ultimate ‘it-concept’. No investment bank is sounder than its reputation. The key lies in cultivating a corporate reputation that is distinctive, capable of creating value, leverageable, and embedded in six building blocks: - an outstanding client strategy leading to ‘client muscle’; - an overall business approach that prioritizes superior external engagement; - a robust competitive strategy leading to distinctiveness; - a people strategy that empowers and nurtures talent, leadership, and followership; - an innovation strategy that drives both inventiveness and innovativeness, and - a business model focused on [1] enhancing responsiveness, [2] reducing unnecessary complexity and variety, and [3] aligning with evolving market dynamics. For investment banks, this means eating, sleeping, and breathing corporate reputation - making it an integral part of the organization’s DNA. Paying due attention to the above subtleties increases the odds of successfully overhauling key aspects of the bank’s performance management engine. In today’s investment banking landscape, reputation isn’t just one aspect of the game – it ‘is’ the game. Ultimately, the reputation, not the product or service, is sold to the customer. In today’s fiercely competitive investment banking arena, the ultimate objective lies in cultivating a distinctive and hard-to-imitate corporate reputation that sets the bank apart from its peers in the eyes of targeted customers and other relevant stakeholders like (potential) employees. Success in choosing, building, managing, and leveraging corporate reputation, the Holy Grail of investment banking, will serve as the ultimate testament to management prowess in the dynamic landscape of the 2020s. For more information, see: https://lnkd.in/e6wt6sJ8 and https://lnkd.in/ewBJ6CgE #investmentbanking #banking # finance #financialservices #goldmansachs

Credit card companies are racking up losses at the fastest pace in almost 30 years, outside of the Great Financial Crisis, according to Goldman Sachs. Credit card losses bottomed in September 2021, and while initial increases were likely reversals from stimulus, they have been rapidly rising since the first quarter of 2022. Since that time, it’s an increasing rate of losses only seen in recent history during the recession of 2008.

Big Bank Results Season 📈📉. Takeaway? There aren't a big 5 banks in the US anymore. There's a big 1. Citi's revenue was down 3%; JP Morgan had its best-ever quarter. Citigroup revenue is down 3% to $17.44bn in the quarter. Charges included exiting municipal bonds, Argentina, and the distressed debt sector. Goldman's profit is up 50% to $2bn on revenues of $11.3bn as it shrinks its investment bank, pulls back from some consumers, and focuses on asset and wealth management. JP Morgan revenue is up 12% YoY, reporting $50bn of profit in 2023 on strong credit quality and net interest income. Shares are up 27% YoY while the bank index is down 5% 🧠 There is no more big 5; there's a big 1. The noteable difference between JP Morgan and everyone else is the narrative. Jamie Dimon is "sh*t scared of Fintech" and concerned about the economy. Other leaders are talking up their innovation efforts. The biggest bank in the USA is still hungry and gets how much the market has shifted. 🧠 Bankers are great at BS'ing themselves. But the hypothesis of death by 1000 cuts from Fintech is playing out. $17.77bn quarterly revenue for Citi is nothing but not vintage performance. Eroding at 3% YoY is not a legacy any CEO wants. I'll give Jane Fraser this, though. She's got a very hard job and is aggressive in trying to do it. She has the courage to come out and say what needs to be said. I really hope she succeeds and shows it can be done. 🧠 Goldman's new strategy appears to be working. They now have $150bn in deposits, which changes their funding mix; they've exited unprofitable business lines and focussed where the money is on wealth and asset management. They're slowly becoming Morgan Stanley with a shrinking Investment Bank, a Global Transaction Bank, and a BaaS operation on the side. #fintech #banks #banking #bankearnings #bank

The last time American finance was operating in a high-inflation, high-interest rate environment, like the current economy, was nearly 40 years ago. That means most current executives, who came up in the era of easy money, are unfamiliar with the complexities of running a bank under today’s conditions. As the top brass at financial institutions start to accept that interest rates will likely be higher for longer, they’re scrambling to find leaders with the skills to succeed in such an unpredictable environment. Some CEOs are deciding that they need to make drastic, expensive and often unpopular institutional changes to help them keep up. Read the full story at https://lnkd.in/eGpj29zs #bankingindustry #markets #future

Key highlights from Big Bank's Earning season: Investment Banking Rebounds: Revenue increases. Signs of a capital markets and M&A recovery are emerging, though full momentum is contingent on interest rates decreasing. Asset & Wealth Management Gains: Buoyed by stock market highs, banks saw growth in their asset-and-wealth-management businesses. These sectors provide steady fee revenue, offsetting lulls in dealmaking and trading. Pressure on Lower-Income Consumers: Despite a strong job market, higher inflation and interest rates are straining budgets, particularly for lower-income households. Banks noted increased credit card balances and delinquencies, with some setting aside funds for potential loan losses. While the outlook is positive, economic or geopolitical shifts could disrupt this progress. Deal season is underway in many industries, including and beyond AI. Temperley BCI #dealmaking #M&A

Bank leaders possess transferable, in-demand skill sets that make them highly sought after. When you find a stellar bank leader, you want to retain them for the long haul. But with fierce competition for top talent, it’s not as easy as it might seem. Discover effective strategies that secure bank leaders’ loyalty. We are offering a unique opportunity for bank executives to participate in our annual survey in exchange for a complimentary survey results report. This report highlights essential benefit features and year-over-year trends, empowering you to make informed decisions. How does your bank measure up against the competition? Take our survey and find out! Here's the link: https://lnkd.in/dSnaJjRy

The appointment of Raman Bhatia as CEO marks a significant milestone in Starling Bank's journey towards greater success. Here's a breakdown of the positive impact his leadership is set to bring: 🔸 Strategic vision: Bhatia's appointment signals a strategic shift for Starling Bank, emphasizing a renewed focus on innovation, customer-centricity, and market expansion. With a proven track record in driving growth and innovation, Bhatia positions Starling for continued success, potentially leading to a public listing in London. 🔸 Market expansion: Under Bhatia's leadership, Starling aims to expand its presence in the UK market and explore international growth opportunities. Leveraging his expertise in digital innovation and strategic growth, Starling is poised to expand its reach both domestically and internationally. 🔸 Revenue diversification: Bhatia's focus on diversifying revenue streams is crucial for Starling's financial success. With his leadership, the bank aims to maximize the potential of its software-as-a-service business model, tapping into new markets and driving revenue growth. 🔸 Innovation and differentiation: Bhatia's background in consumer tech and fintech underscores Starling's commitment to innovation. Expect the bank to continue prioritizing customer experience and offering innovative products and services tailored to evolving needs under his leadership. 🔸 Navigating valuation shifts: Despite challenges in the market climate, Bhatia's strategic acumen positions Starling favorably for its public listing ambitions. With his guidance, the bank is prepared to navigate valuation shifts and investor expectations, steering towards a successful IPO journey. Read more here: https://lnkd.in/gUnbjk6R #DigitalBanking #CInnovation #FintechInsights #FintechInnovation #DigitalBanking #FinanceInsights #BankingRevolution #FinancialNews #DigitalTransformation #BankingInnovation #FinancialGrowth #Finance #Banking #NeoBanking #FinancialServices #Fintech #BankingNews #TechInFinance 

Let’s go! It’s an ideal time to think about expansion — as long as it is well planned. What worked in the past may not go the same way in new markets or new circumstances. Each acquisition deserves its own well-crafted plan for success.