The politics of multi-bank site
Much as some might like to, banks can’t uninvent the internet. Nor is there any clear sign that they know what to do with it. For a variety of motives, both obvious and obscure, they have begun entering into platform consortia with rivals. That’s problem enough and costly. Worse, though, is when a platform seems to be biting the hands that feed it.
As he switches back from his other call, the banker curses. "That was a call about exactly what you're ringing up to discuss," he tells Euromoney. "Consortia platforms. They are the single biggest bloody headache of the job." He should know. As the head of e-commerce strategy at a major European investment bank, he's joined a few.
It turns out the call was from a peer at another institution, and the two had been part of an OTC derivatives consortium that never saw the light of day. "And there are several more of those that were stillborn," he says. Is it, asks Euromoney, because you just can't rely on bankers from rival institutions to trust each other enough to get the job done? Because the egos on the board are just too large to allow for effective decision-making? Because there are too many disagreements?
"That's certainly part of it" he replies.