KAIST College of Business holds a forum called "21st Century's Vision of the Financial Industry"2016-12-29Hit:661
KAIST College of Business holds a forum called "21st Century's Vision of the Financial Industry"
Targeting the CEOs of financial institutions, the forum on 21st Century's Vision of the Financial Industry was held on September 28th at the Chosun Hotel. More than forty prominent figures in the financial industry, including the CEOs of financial institution associations, financial holding companies, banks, securities companies, insurance companies and professors of finance, attended the forum.
Since the 2008 financial crisis, the global financial market has been experiencing dramatic changes. One of the biggest characteristics of the investment banks that generated a sustainable profit during this period of change was that they executed their investment decisions based on an IT system. The most successful company among them generated the average of 35% annual profit (21% annual profit for the worst year) during the past 20 years. On the other hand, the profit rates of the companies that pursued traditional approaches fluctuated in the global market, resulting in unsatisfactory investment outcomes.
After 2008, the global financial companies had to change to overcome three main challenges, which are strict government regulation, the rising power of the World Bank, and the appearance of more risk sensitive participants in the global financial market. The key drivers of this change, besides the decision making process based on technology, include an innovative organizational structure to separate business areas and specialization in particular fields. The dramatic changes of the global financial companies were initiated through innovation in the organizational structure and corporate culture.