Investment bankers, understandably, need to make money to be successful at their job. However, this means client concerns may not always be their top priority.
That’s not to say investment bankers are untrustworthy; they often provide excellent service and offer access to products that may otherwise be unavailable. Nevertheless, there is generally room for improvement when it comes to getting the best deals for clients.
Emma Davidson, director and founder of Affinity Capital, knows what drives investment bankers because she spent 12 years performing in that role, as did fellow director Emily Roostan.
“I’m not saying that we weren’t trustworthy when we worked at the bank – but I will say that we were a couple among the minority of bankers who were trying to do the right thing,” she explains.
“Whether it’s politically correct or not to say, bankers are still incentivised to make as much from their clients as they can.”
So how can clients and investment banks both get what they want without either side receiving an unfair advantage? This is where independent financial investment specialists can make a crucial difference.
Affinity Capital provides a range of services that enable clients to access the best prices when considering structured investments and derivatives.
We can advise investors on what is a fair deal through the use of innovative and accurate estimates derived from sophisticated research, extensive market experience, risk-reward and pricing analysis.
“The fee conversation is just one of the areas that requires independence and analysis,” Emma adds.
“Any client that says they work with a handful of banks and trusts them is sadly doing themselves and their clients a disservice.”
While investment banks have historically held the advantage in negotiations, the tide is beginning to shift. This is particularly true for businesses that have independent people or firms fighting their corner.
Banks have the expertise, the data, live feeds and the models to ensure the deck is stacked in their favour. However, firms such as Affinity Capital can even the odds and ensure all parties are satisfied with the final outcomes. “Whatever you do, find a quality company that can actually help you and provide insights,” Emma concludes.