Disintermediation – where banks are sidelined by new models and tech – across the banking sector has seen many of the major players overhauling and reducing the range of services they offer to the market. BNP Paribas CIB has chosen a different path with an integrated business model.
This is bold stuff and more than a re-branding exercise – it underpins a business model which focuses on acting as the bridge between corporates and institutions and providing some of the so-called “traditional services ” no longer offered by retreating competitors.
The bank launched its new approach shortly after Yann Gérardin came on board, remoulding the bank’s CIB division away from corporate and investment banking to a focus on the “real economy” through corporate and institutional banking services.
And it seems to be working – CIB revenues rose 13.2% to €11.6 billion, with pre-tax profit up 17.9% to €3.3 billion. BNPP’s business model offers an interesting glimpse of what an alternative banking universe could look like, as outlined in this month’s Euromoney.