Indisputably, the banking sector in Serbia is probably the most developed and competitive segment of the national economy, in terms of business aspects but also in the area of regulatory harmonization with Basel standards and European Central Bank (ECB) guidelines. It will remain one of the key generators of further development. In 2017, total balance-sheet assets of the Serbia banking sector amounted to approximately 28 billion euros, of which two-thirds is foreign-owned. The past period was marked by the consolidation of the banking sector and withdrawal of Greek banks, which resulted in a total of 29 active banks. Expectations are that the consolidation process will continue, with competition remaining at a satisfactory level, ultimately benefiting clients.
We're all aware of the rapid pace of innovation in the global banking industry--but the focus on new technologies sometimes means the human element is overlooked. However, as more processes become automated and digitized, banks will need to fundamentally shift the way they find and develop talent. Our infographic sets out the six ways banks are becoming talent-first organizations.
First, let me give you 2 facts. Fact 1, the most common fee scale of an investment bank on a merger deal is based on Lehman 5-4-3-2-1 formula, this means 5% is paid on the first million dollars of the sale price, 4% on the next million, 3% on the third million, 2% on the fourth million, and 1% on the amount over $4 million dollars. For large transactions, the fees are less than 1% of the deal's value, still a tremendous amount of money. The 2nd fact is that taking a company public can also be very expensive. Costs vary, but can be as much as 10% on a $150 million stock issue, not including internal expenses, such as management's time.
Technology and traditional banking have forged a rather complementary relationship since the 1990s when banking was defined by physical brick-and-mortar branch structures. In addition to the slow demise of tradition and regulation, wherein cash and checks were the central transaction currencies, a new generation of consumers have never seen a bank ledger and use digital methods for everything from money transfers and purchases, to depositing payroll checks. Here are a few texts that will help Informer readers navigate the new age of banking technology with ease. The Digital Banking Revolution, by Luigi Wewege Over the past decade, financial service innovations have contributed to a completely new way in which customers can bank, threatening the status quo of traditional retail banks, and redefining a banking model which has been in place for generations. These new technological advancements have facilitated the rapid emergence of digital banking firms and FinTech companies, leading to established banks being forced to swiftly increase their pace of digital adoption to stay relevant and stop mass client attrition to these agile financial start-ups.