Financial Services Mapping

Financial Services Mapping

Below is a summary of key findings on financial services mapping of specifically three business lines: commercial banking, investment banking, and asset management. Detailed mapping may be found in the spreadsheet here. As there is no readily available information that maps out these financial services, information in the spreadsheet is triangulated from various sources and examples from major financial institutions. Please note that different financial institutions may structure their services differently and group services differently using different terms. Therefore, this report also includes a number of examples from real banks.

Financial Services Structure

COMMERCIAL BANKING

  • Commercial banking refers to banking services offered to individuals (and small businesses) although some consider it to be strictly services for commercial businesses only. For the purpose of this report, we assume the former definition, which includes both consumer and commercial offerings.
  • Services offered by retail banking include:
  • Services offered by commercial banking include:

See the figures below for examples of business structures of JPMorgan Chase and Bank of America. JP Morgan

Bank of America

INVESTMENT BANKING

  • Investment banking services are broadly grouped by Lead Visor into five categories: merger & acquisition, project financing, corporate finance & advisory, financial services outsourcing, market entry & government relations. See the figure below for details.
Financial Services Mapping
  • Goldman Sachs investment banking division also includes additional services such as corporate lending; thus, it is added as a service offering under project financing. See the figure below for its business segments and corresponding revenue sources.

Goldman Sachs

  • JPMorgan investment banking division also includes market-making and trading (fixed income and equities). Therefore, this is included as another first-level category.

ASSET MANAGEMENT

  • Asset management can be defined broadly as investing services of a client’s portfolio offered by a financial institution while wealth management typically offers a wider range of services (more personalized) to individual clients and runs separately from asset management. How asset management services are divided depend largely on the size and specialty (and choice of strategies) of each asset manager. Please note that private wealth management is a separate business line, an example of which may be found in the figure below of Northern Trust private wealth management business line.
Financial Services Mapping
  • For the purpose of this report, we select the service structure of BlackRock, the world’s largest asset management firm, as a model. Its services are grouped as follows (note that iShares ETFs group is not included in this report as it is a uniquely BlackRock service and hence does not reflect the general asset management services):
    • Retail: equity, fixed income, multi-asset, and alternatives
    • Institutional: active and index
  • This report combines BlackRock’s services with UBS’s services to provide a more holistic structure. Thus, services such as mutual funds, money market and hedge fund solutions are added to the second-level services for both retail (individual) and institutional services. Any specialized services uniquely to the firm is not included.

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