Banks are globally undervalued, but not in the short-term.
In the short-term the Federal Reserve is raising rates and that influences banks' business in a negative way, because due to the higher rates corporate clients take out lower amounts of loans or cannot pay their current outstanding obligations.
This caused on its turn corporate clients to do less corporate deals, mergers and acquisitions, equity and debt capital raising, which influences negatively the investment banking business of banks.
In addition, banks too slowly embrace the blockchain technology and Bitcoin, cryptocurrencies, which can be an avenue for growth for banks in the current rising rates environment.
By depriving themselves and their client from the advantages of Bitcoin, crypto banks are loosing billions of USD in revenue and risking falling behind and ultimately loosing clients to more nimble, agile fintech competitors that offer crypto.
Bitcoin, cryptocurrencies are actually financial technology or fintech these days. Fintech is crypto and crypto is fintech.
And the financial companies that embrace crypto will become tomorrow's fintech leaders. Due to the computing power it requires, Bitcoin, cryptocurrencies can be done via cloud computing and thus banks can ease up on the infrastructure costs for crypto. Infrastructure costs are often cited as one of the reasons for the slow adoption of cryptocurrencies. Cloud computing can alleviate that.
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