Developments in the Global Financial Services Industry - Essay Example

Financial development is measured by factors such as size, depth, access, efficiency, and stability of a financial system, including its markets, intermediaries, range of assets, institutions, and regulations. There is a great link between financial services and economic growth. This increases the long-run growth trajectory of a country and ultimately improves the welfare and pros parity of producers and consumers that have access to financial services. Here the question arises How do financial intermediation and markets affect economic growth and performance and, more generally, contribute to increased aggregate economic welfare and prosperity?

They mostly do this through their effect on capital accumulation (the rate of investment) and on technological innovation. Now the question is how it impacts on Deutsche Bank. If a problem arises in financial services, it will really affect Deutsche Bank because this bank provides a wide range of financial services to its customers. Its basically The Corporate & Investment Bank Group Division, or CIB, is responsible for Deutsche Bank’s capital markets business, comprising the origination, sales, and trading of capital markets products including debt, equity, and other securities, together with its corporate advisory, corporate lending and transaction banking businesses.

When we talk about economic growth and performance, it shows the link with the capital market. Here capital accumulation is the rate of investment. So when economic prosperity is here then definitely the capital market will grow that is the aim of Deutsche Bank. It continuously working on it and finding different ways to increase its market. Deutsche Bank is dealing in global transaction banking although its in South Africa. But with the help of courage team it really works hard in covering the bank’s cash management for corporate and financial institutions, trade finance business as well as trust and securities services.

So whenever any financial crisis comes, it directly affects the bank’s activity all over the world. If global transaction helps to provide a big portfolio of clients, it also shows the great risk for the company. So risk management is also an important issue in Financial Services. There is a need for well-educated risk managers who have great exposure to risk solutions. Deutsche Bank has a good risk management team to cope with this issue. As we all know there are global ups and downs in financial market so companies are focusing on outsourcing.

This concept has increased by 15% over the previous quarter. In outsourcing, employees, market locations, captive model landscapes, and key supplier development all are included. It is more beneficial for the companies. Similarly, Deutsche bank is doing the same practice for survival. It has global transactions. In a competitive era, it must reduce your cost to increase revenue. In the financial market, the trend of strategic alliances is moving up. Companies are doing so for their survival. Different standards are set for these alliances.

It depends on the company's own strategies. Deutsche bank has a lot of innovative programs with it for its customers. But it may be possible for it to take some action in this regard to avoid the great competition.