Knowledge@Wharton and Ernst & Young Highlight Trends and Strategies for Global Banking Industry Growth in Emerging vs. Developed Markets

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As emerging market growth strategies sweep across the global banking industry, global banks are fighting to build out their presence. The second installment of the Global Banking: Foresights and Insights video series focuses on developing trends and best practices for seeking growth in emerging and developed markets.

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This level of expansion coupled with investments in Western banking institutions will create an extremely competitive landscape.

There is a critical choice on the horizon for senior leaders at global banks. To what degree does their organization deploy scarce resources in emerging markets as opposed to developed markets? As emerging market growth strategies sweep across the global banking industry, global banks are fighting to build out their presence. This requires a deep understanding of the regulatory and growth challenges that await foreign banks. The second installment of the Global Banking: Foresights and Insights video series titled “Regulatory and Growth Challenges Face Global Banks”, brings together leading international academics from Knowledge@Wharton and global banking thought leaders from Ernst & Young’s Global Banking & Capital Markets practice to discuss developing trends and best practices for seeking growth in the global banking industry.

A vital piece of a global bank’s growth strategy is its ability to recruit, suggests Mauro Guillen, Professor of Management at The Wharton School and Director of the Joseph H. Lauder Institute of Management and International Studies, in the video segment titled “Global Banking Challenges – Emerging vs. Developed Markets.” He goes on to highlight Brazil as a leader in talent acquisition amongst the emerging market regions.

In addition to Guillen, Ernst & Young’s Deputy Leader for Global Banking & Capital Markets Ian Baggs and Ernst & Young Australia’s Asia-Pacific Banking & Capital Markets Leader Steve Ferguson identify market trends that are driving growth such as consolidation within emerging market regions and state-owned banks taking strategic stakes in Western banks.

“Every day I hear from my international students that emerging markets such as Brazil are becoming more attractive,” says Guillen. “There are great opportunities for these students as well as experienced bankers in certain emerging regions and this will certainly affect the talent pool that considers pursuing careers in developed markets.”

Baggs agrees: “I think this migration of talent underscores the fact that global banks will face massive challenges when entering emerging markets. Local banks were not exposed to the full weight of the financial crisis and have made strategic consolidation decisions,” he said. “This level of expansion coupled with investments in Western banking institutions will create an extremely competitive landscape.”

This is the second installment in the video series and upcoming topics will include lessons learned from the financial crisis, emerging markets, information technology investments, future growth models and more.

About The Wharton School and Knowledge@Wharton
The Wharton School of the University of Pennsylvania — founded in 1881 as the first collegiate business school — is recognized globally for intellectual leadership and ongoing innovation across every major discipline of business education. The most comprehensive source of business knowledge in the world, Wharton bridges research and practice through its broad engagement with the global business community. The School has more than 4,800 undergraduate, MBA, executive MBA, and doctoral students; more than 9,000 annual participants in executive education programs; and an alumni network of 86,000 graduates.
http://knowledge.wharton.upenn.edu/ is a free biweekly online resource that captures knowledge generated at the Wharton School and beyond through such channels as research papers, conferences, speakers, books, and interviews with faculty and other business experts on current business topics. The Knowledge@Wharton network – which includes Chinese, Spanish, Portuguese, Indian and Middle East editions -- has nearly 1.7 million subscribers worldwide and contains more than 2,000 articles and research papers in its database. For more information: http://knowledge.wharton.upenn.edu

About Ernst & Young Banking & Capital Markets Center
In today’s globally competitive and highly regulated environment, managing risk effectively while satisfying an array of divergent stakeholders is a key goal of banks and securities firms. Ernst & Young’s Global Banking & Capital Markets Center brings together a worldwide team of professionals to help clients achieve their potential – a team with deep technical experience in providing assurance, tax, transaction and advisory services. The Center works to anticipate market trends, identify the implications and develop points of view on relevant industry issues. Ultimately it enables us to help clients meet their goals and compete more effectively. It’s how Ernst & Young makes a difference.

About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 141,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. For more information, please visit http://www.ey.com

Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

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Brendan Mullin

Peter Winicov
Knowledge@Wharton
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