Cloud computing totally changed investment banking system
How can data shows who will be next UHNW?
Cloud computing has fundamentally changed how banks investigate growth prospects. Traditionally, relationship bankers like Wells Fargo or HSBC assessed customer wealth based on bank records, real estate holdings, and the financial statements of non-public companies. However, venture capitalists can now identify potential ultra-high net worth individuals (UHNWI) years in advance by analyzing customer traction data from CRM systems, trailing twelve-month revenue from cloud ERP solutions, and product-market fit information gleaned from infrastructure-as-a-service (IaaS) data. This non-financial data illuminates areas of innovation and future potential.
Cloud computing has reached the next stage “how to reproduce innovation”
Cloud players surpassed traditional banks in terms of net earnings in 2019(not about market cap, but about real cash), as evidenced by the fact that Microsoft and Google’s earnings surpassed those of JPMorgan Chase. The superior EBITDA and growth performance of these tech giants compared to traditional investment banks suggests a paradigm shift in the approach to identifying and capturing innovation within the US market. US cloud computing industry already found how to reproduce innovation again and again, not only just producing innovation one time. However, while Alibaba and Tencent haven’t yet eclipsed ICBC in China, it’s worth noting that similar trends might be unfolding there as well.