What strategies are companies in Investment Banking using to win
Explore Investment Banking companies
In Investment Banking, the following strategies are implemented by companies to win:
1. Defend and Deepen Core Client Franchises
Both firms prioritize strengthening relationships with their most valuable clients to protect their core advisory and financing businesses.
Example: Morgan Stanley: Focuses broadly on its Institutional Securities segment by aiming to "Strengthen Client Relationships Globally" with its target clients: corporations, governments, and financial institutions.
Example: Goldman Sachs: Takes a more targeted approach, aiming to "Improve Standing with the Top 150 Clients in FICC and Equities" and solidifying its M&A dominance by helping clients "Execute Large, Complex Transactions."
2. Expand into High-Growth Adjacencies, Especially Private Markets
Both banks are moving beyond traditional investment banking to capture growth in alternative investments and private credit, but their approaches differ in structure.
Example: Morgan Stanley: Aims to "Expand Product Offerings in High-Growth Areas" like alternative investments and pursue "Strategic Acquisitions and Partnerships" to enhance capabilities.
Example: Goldman Sachs: Has created a dedicated strategic pillar to "Capitalize on Private Market Growth" through its "Capital Solutions Group." This formally links its investment banking deal-sourcing (GBM) with its investment arm (AWM) to create a powerful synergy and dominate the private credit market.
3. Compete on Talent and Reputation
Both firms recognize that their primary assets are their people and brand, making talent acquisition and retention a cornerstone of their strategy.
Example: Morgan Stanley: Lists "Human Capital" and "Reputation" as key "How to Win" elements, supported by a top-level goal to "Attract and Retain Top Talent" through competitive compensation and development programs.
Example: Goldman Sachs: Highlights its "Partnership Culture" as a key strength for attracting talent and has a strategic goal to "Invest in Our People and Culture."
4. Drive Efficiency and Innovation Through Technology
Both are leveraging technology, particularly AI, to improve efficiency, enhance client service, and gain an edge in trading and operations.
Example: Morgan Stanley: Aims to "Embrace Technological Innovation" and "Invest in AI-Driven Solutions" to improve trading, risk management, and operational efficiency.
Example: Goldman Sachs: Appears more explicit in its implementation, with a core goal to "Run the Firm More Efficiently" by increasing "the use of generative AI-powered tools in day-to-day workflows."