Competition among banks is shifting to the commissions generated by customer investments, as they see that the future of profitability no longer lies solely in loans, but in who will control the investment relationship with customers. This trend is reflected in the latest moves by banking groups with acquisitions of brokerage firms, as well as asset management companies that are being transformed into a “valuable asset.”
The wave of agreements that is taking place aims to create integrated investment ecosystems, as after the explosive rise in interest rates and the historically high profits of recent years, banks recognize that interest income will not remain at current levels forever. Thus, they are increasingly turning aggressively to activities that generate fixed fees, such as wealth management and private banking, brokerage and investment banking. The goal is to increase non-interest income to 30% of total income, from around 20% today, ensuring the next day of banking profitability. Brokerage companies are no longer considered a complementary activity, but a gateway to keep the client “within the group” and not seek investment services in independent brokerages, international brokers or digital platforms, but to carry out all their action – from banking transactions to investments – in the same financial ecosystem.
It all started with the acquisition of AXIA Ventures by Alpha Bank, an agreement that was considered pivotal for the bank’s strategy in the capital markets. AXIA is to merge with Alpha Finance and the bank’s investment banking unit, creating a single brokerage and investment banking platform. The picture was completed with Alpha Bank’s public offer for the acquisition of Alpha Trust, one of the most well-known asset management companies in the Greek market, through which the bank significantly strengthens its presence in mutual funds and wealth management, essentially attempting to “close the loop” of investment services under a single umbrella.
Optima is also moving in the same direction, through the acquisition of Euroxx, an agreement that strengthens the bank’s position in stock market transactions, institutional brokerage and capital market services. Credia’s agreement to acquire 70% of Pantelakis Securities sends a similar message, confirming that the new wave of concentration in the sector is just beginning.
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