Advances in Banking: Top-Down Vertical Integration

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