The financial crisis has created an exceptional circumstance in which to evaluate the quality of corporate online communications. As companies have been affected across the board, this has presented an opportunity to make a comparison between their online communication methods. We took the occasion to survey 51 of the world’s largest financial institutions and evaluate their online responses in October 2008 as significant events were unfolding.
In the regular round up of sector forecasts that industry magazines like to gather for the last issue of the year, Canada’s Marketing Magazine cornered a number of senior brand and advertising executives and asked them what the emphasis for brand marketing will be in 2009. An industry leader in Canada, Jack Bensimon of Bensimon Byrne characteristically led the pack of “experts” when he observed that “brands are increasingly sensitive to social, political and regulatory issues.” I doubt that there is anyone working in the Exchange Industry anywhere in the world today who wouldn’t agree with Mr. Bensimon.
In recent years, most security markets have experienced fragmentation. Besides traditional stock exchanges, trade could be done on new trading venues or within brokerage firm. In United States, Goldman Sachs, Morgan Stanley or UBS are some of the firms that have developed their own proprietary trading platforms. In Europe, “systemic internalisers”, which are investments firms executing client orders on their own account, are authorized since November 1st 2007. Most often, these new possibilities are offset by strict reporting obligations, for which specialized firms develop new services.
Volatility and risk are of central importance to those of us involved in finance. They lie at the center of virtually all of our work. Without volatility, without risk, finance would not exist as a subject in our business school curriculum, in our academic research. Finance, quite simply, would not be distinguishable from deterministic economics. Neither would finance departments in banks and industrial firms be endowed with anywhere near the importance that they currently have.