BCG – Embracing Value Migration, Oct 2024

This BCG report examines value migration in corporate and investment banking (CIB), highlighting strategies for adapting to industry shifts. The report identifies significant changes, including the move from traditional banks to nonbank financial institutions (NBFIs) that are capturing market share, particularly in private credit and advisory services. As revenues lag behind global GDP growth, CIBs are challenged by slow revenue expansion and high operational costs. The report advises CIB leaders to prioritize private market investments, enhance risk management, and support the energy transition by aligning portfolios with emission reduction targets. Furthermore, leveraging technology and AI to streamline operations is critical to maintaining competitive advantage in a shifting market landscape.