From investing in back office automation to the possibility of a recession, here are four under-the-radar trends from banks earnings calls.
As fintechs have gained popularity among consumers and businesses in recent years, the big banks have looked for new ways to grow and retain customers.
From challenger banks to free trading platforms, startups are already grabbing a share of wallet, especially among younger consumers.
Despite the threat of fintechs, though, the bulge bracket banks saw significant growth in profits in 2018, mainly on the back of corporate tax cuts. However, these companies as a whole have underperformed the rest of the stock market, taking a hit especially when the market fluctuated late in the year as concerns around trade wars and economic contraction hit the S&P.
Using CB Insights’ earning transcript tool, we surfaced 4 trends from banking earnings calls in the fourth quarter to understand how big banks are approaching tech, customer growth, and the broader economy.
Note: The banks we examined included Morgan Stanley, Goldman Sachs, JP Morgan, Bank of America, Citigroup, and Deutsche Bank.