Advances in Banking: Top-Down Vertical Integration

11 Pages Posted: 28 Apr 2023

Date Written: April 26, 2023

Abstract

This essay (a) analyses the different business units within a bank seeking similarities across them; b) proposes the exploitation of their synergies through a vertical integration unlocked by recent algorithmic technology advances - in the limit, federated technology for algorithmic trading whether the bank incurs in such an activity or not; (c) discusses why such an approach would let a bank take the lead; and (d) further motivates the incentivisation of equities as regulatory collateral in order to unlock game theory strategies around the liquidity management signalling which, in turn, would favour a more stable financial system overall.

Keywords: banking platforms, synergies, vertical integration, collateral signalling, algorithms, algorithmic technology, federated technology

Suggested Citation

Alvarez-Teleña, Sergio and Díez-Fernández, Marta, Advances in Banking: Top-Down Vertical Integration (April 26, 2023). Available at SSRN: https://ssrn.com/abstract=4430206 or http://dx.doi.org/10.2139/ssrn.4430206

SciTheWorld ( email )

Spain

Marta Díez-Fernández

SciTheWorld ( email )

Madrid
Spain

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