Overcoming cultural barriers in the investment banking sector: Training and development in Germany and Switzerland

Diplomarbeit von Martin Giefers

Abstract:

The German banking sector, as in most Western European countries, is confronted with drastic changes which deeply affect the conditions of the financial service market and the characteristics of populations in banks. In the last few years, the isolation of the national financial markets decreased due to the increasing of foreign trade, international competition, and further developments of new financial products, like futures for example. Therefore, all banks have to think globally and have to establish branches in all financial centers to be available for their clients and stay competitive; like in New York City, London, Tokyo, Zurich, and Frankfurt am Main, cities in which the financial market plays an important role. As it is widely known, Switzerland has an outstanding international position in the investment banking sector. This condition was taken as an opportunity to examine the diamond concept of Porter related to the Swiss and German human resources.

The thesis is divided into five chapters, of which the first chapter gives a general overview of the investment banking sector, which is the definition, the fields of activity, and the traded securities in the investment banking sector.

The German and Swiss bank system is exemplified in the second chapter. Furthermore, this chapter gives a short overview of the banks´ history in Germany and Switzerland as well as examples of training programs of the German Deutsche Morgan Grenfell and Commerzbank AG and of the Swiss SBC Warburg. In addition, the training profession Bankkaufmann/-frau which exists in Germany as well as in Switzerland is explained in this chapter.

The third chapter deals with the cultural and organizational factor in the investment banking sector. The German and Swiss culture is investigated by the example of Hofstede’s dimensions of cultural differences. Furthermore, the organizational changes, a new network approach in investment banking, and a brief outlook of Culbert’s mind-set management of the power of advising are expounded in the third chapter.

The fourth chapter deals with the main focus of this thesis which is the description of the Swiss and German advantages and disadvantages in the field of human resources within the investment banking sector. A comparison between German’s and Switzerland’s human factor is followed by proposals and solutions to strengthen the German human factor of investment banks, so that the German banking business become more competitive against other financial metropolises.

The fifth chapter, the conclusion, summarizes this thesis and describes the essential outcomes of the chapters. Furthermore, a preview of changing situations in the investment banking sector is given.

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