Kunst privat! – Art Collections of Hessian Companies

It is well-known that companies often own representative art collections. But, they rarely are open to public. The two-day event called Kunst privat! Hessian companies show their art, on the 24th and 25th of June 2017, is going to change that. The companies open their doors for tours through their collections. Frankfurt Main Finance members DekaBank, Deutsche Börse, Deutsche Bank, DZ BANK, Helaba and UBS will also open their doors to show their comprehensive collections.

About work and leisure time, social criticism and contemporary art

Since 2003, DekaBank traditionally opens its doors to its collection of contemporary art in occasion of the event Kunst privat!  This comprises nearly 1,400 works of painting, photography, sculpture, installed art and filming.

In the ultra-modern Cube in Eschborn, the Deutsche Börse shows its still quite young art collection: In 1999, it started to build up a collection of contemporary photography and presents these in changing exhibitions. In occasion of the two-day event it also opens up on the weekend and welcomes the visitors to its current exhibition. Work & Leisure is devoted to the two living worlds that shape the human daily life the most: work and leisure.

One of the worlds’ most meaningful collections of drawings and photographs after 1945 is owned by the Deutsche Bank. Under de name Art Works, it regularly opens its doors for a wide audience to visit the works. As also within the scope of Kunst privat!.

The collection of the DZ BANK is focused on photographs. Regularly, it welcomes visitors to survey exhibitions in the in-house ART FOYER at the place of republic and promotes young artists with scholarships. On the 24th and 25th of June, tours through the portfolio of photographic works happen in the DZ BANK tower.

In the MAIN TOWER, Helaba invites people to visit its collection of contemporary art. Besides paintings, photographs, drawings and sculptural works, that includes also numerous extensive artistic wall works locally realized in the MAIN TOWER during the past few years.

UBS creates a symbiosis of architecture and functionality of the opera tower on the one side and of the artworks on the other side. Their whole collection includes impressive 30,000 works of art. At their location in Frankfurt, there are exhibits of German artists. Additionally, with their app Planet Art, UBS campaigns for more education in art: through that, subscribers receive the most important information out of the world of contemporary art.

Besides the introduced ones, nearly 30 further Hessian companies open their houses for a tour through their art collection. From the 24th to 25th of June there will be artworks from different epochs since the renaissance from painting over drawing, photography up to sculpture and installation.

You will find further information under the following Link.
Registration for the tours begins on the 24th of May 2017.

FinTech ecosystem

Welcome to Frankfurt – Germany’s leading FinTech ecosystem

Hessen Trade and Invest has, in cooperation with Frankfurt Main Finance and Wirtschafts- und Infrastrukturbank Hessen, published a new brochure highlighting the many qualities of the FinTech ecosystem in the Frankfurt Rhein-Main region. Hessen Minister of Economics, Energy, Transport and Regional Development, Tarek Al-Wazir states in the brochure, “The digital transition taking place in the financial industry represents an opportunity that we are ideally equipped to capitalize on. The Rhine-Main region is a financial center as well as an ICT industry hot spot. This combination offers enormous potential in today’s world where digital technologies are giving rise to the creation of entirely new business models. And it is precisely this potential that we are now in the process of mobilizing.”

The brochure offers a concrete outline of why Frankfurt and Hessen offers the perfect conditions for international investors and FinTech start-ups. The Financial Centre Frankfurt offers FinTech companies a unique set of location specific advantages. In addition to the numerous supervisory authorities and regulatory agencies, the greater Frankfurt area is home to outstanding expertise in the ever-important are of IT security. In November 2016, the German federal government designated the Financial Centre Frankfurt the digital hub for FinTech and financial services as part of their greater digital hubs initiative.

Frankfurt am Main is already home to great FinTech success stories. One such example is 360T, an electronic FX trading venue that was acquired by Deutsche Börse Group in 2015 for 725 million euros. Another success story is Frankfurt based robo-advisor Vaamo. Born out of the Goethe University’s Unibator, Vaamo quickly became a partner in the B2B segment, working with the likes of N26, Santander and 1822direkt.

Future success stories in the FinTech space are currently being written in Frankfurt’s many incubators and accelerators. As part of the Digital Hub initiative, Frankfurt’s Tech Quartier was named the German FinTech Hub. Tech Quartier offers a varying array of working spaces for start-ups of all sizes. The FinTech brochure maps out the locations of Frankfurt’s incubators and accelerators, like the Deutsche Börse FinTech Hub or Accelerator Frankfurt, illustrating the dynamic FinTech ecosystem and cluster. This dynamic ecosystem is enriched by a numerous events series occurring almost weekly as well as awards for entrepreneurs, like the FinTechGermany Award where the top FinTechs are honored with a Golden Garage.

To learn more about Germany’s leading FinTech ecosystem in the heart of Europe, download the brochure from Hessen Trade and Invest here.

 

J.P.Morgan Corporate Challenge

Europe’s Largest Run Comes to the Financial Centre

Since 1993, the Financial Centre Frankfurt has been a host city for the J.P. Morgan Corporate Challenge, a 5.6 kilometer run through the city centre. The first year 527 participants from 57 companies took to the streets and began a great tradition in the Main Metropolis. In 2016, 68,119 runners from more than 2600 companies took part in what is now the largest run in Europe and one of the largest in the world.

To celebrate the 25th J.P. Morgan Corporate Challenge in Frankfurt, winners from the global series will come to Frankfurt for the Championship race. On June 13, 2017, the world’s top runners will join nearly 70,000 participants representing Frankfurt’s businesses and organisations, ranging from international investment banks to the smallest FinTechs. The race aims to promote team spirit, communication, collegiality, fairness and health. Starting in the city centre, the course passes the Frankfurt Stock Exchange and the old opera house before surrounding runners with the towering skyscrapers in the heart of the banking district. Along the course, colleagues and friends cheer on the runners on creating a festive atmosphere throughout the whole city. Following the race, runners join their colleagues for company parties along the Main river and all over the city. The J.P. Morgan Corporate Challenge does not just bring together employees but also the entire Financial Centre Frankfurt.

Eschborn for Business

Upwardly Mobile: Eschborn for Business

The newest edition of the magazine Eschborn for Business is now available. The annual, bilingual magazine concentrates on the more than 30,000 employees and over 4,000 companies located in Eschborn, covering a wide range of commercial and economic developments in the city.

Some highlights:

  • “Upwardly Mobile” – cover article discusses the city’s commercial growth, new construction and the drivers behind this.
  • “A once-in-a-lifetime opportunity” – Frankfurt Main Finance Managing Director, Hubertus Väth explains how Brexit will positively impact the Frankfurt Rhein-Main Region and Eschborn.
  • “The most dynamic FinTech Hub” – The Frankfurt Rhein-Main Region is home to a booming FinTech ecosystem. Deutsche Börse, headquartered in Eschborn, is one of the movements biggest supporters.
  • “From London to Eschborn” – South Korean tech giant, LG has moved its European headquarters from London to Eschborn.

Eschborn: top location with high standard of living

Thanks to a combination of relevant business factors, the city of Eschborn, with its population of 21,000, has developed into an international and modern business hub. Ninety-five percent of the over 4,000 local businesses are service providers, primarily in the finance, IT, consultancy, and telecommunication sectors. About 80 high-tech companies have also settled in Eschborn, establishing the city as an important innovation hub in the FrankfurtRhineMain area.

The current edition of the Future Atlas published by the Prognos research institute ranked the Main-Taunus-area, spearheaded by Eschborn and its over 32,000 employees, 15th in its ranking of 402 German cities and administrative districts. Local companies benefit from the convenient infrastructure, the proximity to Frankfurt Airport and ICE train stations, from the business-friendly tax policy and Eschborn’s moderate lease and property prices. The location’s green surroundings, nestled in the foothills of the Taunus Mountains, add to its appealing high quality of life. There are attractive residential areas, committed schools, lots of sports facilities and parks, free-of-charge parking lots, and over 100 different clubs and cultural institutions that offer a wide range of leisure activities. In conclusion, Eschborn is a location that opens up promising perspectives for work and leisure.

Download the 2017 edition of Eschborn for Business!

Financial Centre Report

Building Bridges – Frankfurt and Europe after Brexit. The new Financial Centre Report from Frankfurt Main Finance

The new Financial Centre Report, Building Bridges – Frankfurt and Europe after Brexit, from Frankfurt Main Finance has just been released. Designed as a magazine, the Main Metropolis is presented from varying perspectives and demonstrates the city’s strengths and the distinct characteristics that set it apart. The first section of the report is devoted to the many facets of the Financial Centre Frankfurt. The second part of the report, Insights, analyzes economic issues and takes a critical look at the opportunities for the Financial Centre following Brexit.

In the forward from Hessian Minister for Economic Affairs, Tarek Al-Wazir, the minister recalls the rise of Frankfurt as the most important Financial Centre in Continental Europe. He points to the multitude of challenges the financial industry faces today. Reflecting on the demands on the industry to re-invent and re-establish itself through digitization. Helping to tackle these challenges is the thriving FinTech scene in the Rhine-Main region.

Another current challenge is coping with the reorientation of the European financial sector following and finding future oriented solutions for this. The title of the Financial Centre Report, Building Bridges, is born from this challenge. The report explains how Frankfurt and the Rhine-Main region are helping to future-proof the European Financial Sector and continue ensuring it can efficiently support the real economy.

The publication from Frankfurt Main Finance casts a spotlight on the Financial Centre Frankfurt and introduces insights that work together to paint an impressive and coherent picture. After the lighter, more personal look at the Main Metropolis in the first section, the following half delves into a fact-based analysis of the Financial Centre Frankfurt and the region. Readers will appreciate the careful exploration of the day’s pressing topics: What does Brexit mean for Frankfurt? The current and future relationship between the real economy and banks. What is the state of long-term financing and how will the German economy be affected by Brexit?

Frankfurt Main Finance Celebrates New Membership of Oliver Wyman

Strategy consultancy Oliver Wyman has become a new member of Frankfurt Main Finance. Now, almost 50 members are hard at work in support if the Financial Centre Frankfurt. Through their membership, all representatives underscore their commitment to Frankfurt and commitment to its national and international importance.

“We are delighted to welcome Oliver Wyman GmbH as a sustaining member. For a long time now, Oliver Wyman has proved its commitment to the Financial Centre Frankfurt through its engagement,” explains Dr. Lutz Raettig, President of Frankfurt Main Finance. For example, the strategy consultants supported the FinTechGermany Awards 2017 as a sponsor. In addition, Matthias Hübner, Partner at Oliver Wyman in Frankfurt, was a juror for the award ceremony.

Oliver Wyman is a global leader in management consulting. With offices in 50+ cities across nearly 30 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm has more than 4,500 professionals around the world who help clients optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. In addition, Oliver Wyman regularly publishes studies, white papers, etc., and collaborates with leading academics to carry out research projects on future topics.

“In these uncertain times, the preservation and development of a strong financial centre continues to gain in importance for Germany. As one of the leading strategy consultancies in the German market, it is a great honour and important for Oliver Wyman to support Frankfurt Main Finance with our experience and expertise in the financial sector. We are looking forward to a successful cooperation,” says Matthias Hübner, Partner and FinTech expert at Oliver Wyman.

Frankfurt Finance Summit 2017 – Europe Reloaded

Since 2011, prominent actors from the national and international financial world have gathered for the Frankfurt Finance Summit. Under the motto Europe Reloaded – Challenges for the Financial Sector, decision-makers from central banks, stock exchanges, supervisory authorities, banks, insurance companies, politics, business and academia met on 26 April 2017, in the Financial Centre Frankfurt to discuss current issues faced by the European economy, regulators and financial markets. This year concentrated on three key areas challenging the financial sector: Europe after Brexit, Cyber Security and Innovation, and the Transformation of Long-term Financing.

Dr. Lutz Raettig, President of Frankfurt Main Finance, opened the Frankfurt Finance Summit by celebrating the diversity of the attendees and speakers, ranging from several countries and continents and a broad range of backgrounds in the financial services industry. He explained that this year “change is the story – change in all directions,” and that fundamental changes due to Brexit and banking regulation will follow the industry for years to come. Raettig closed by thanking the sponsors of the Frankfurt Finance Summit for their generous support. Sponsors this year included Deutsche Bank, McKinsey & Company, Deutsche Börse Group, DZ Bank, ING-DiBa, the Association of German Pfandbrief Banks, and Frankfurt Economic Development GmbH.

The time for diplomacy

Baroness Catherine Ashton with Prof. Dr. Uwe Stegemann

The day’s first topic, Europe after Brexit, began with a keynote from Baroness Catherine Ashton, Former First Vice President of the European Commission and former High Representative of the EU for Foreign Affairs and Security Policy. The veteran diplomat reflected on her experiences in complex negotiations ranging from EU trade deals to the chairing the P5+1 leading to the Geneva interim agreement on the Iranian nuclear program in 2013. Lady Ashton’s insights into the intricacies and keys to success for these sorts of arbitrations resonated with the representatives of the financial sector whose organizations will certainly be touched by the forthcoming Brexit negotiations. Lady Ashton emphasized that diplomatic solutions are not always just found in negotiations, but rely on coalition building to provide a comprehensive approach to resolving complex problems. She closed by stating, and perhaps reminding the audience of the European Project’s many successes, that “diplomacy is soft power at its best. And that’s what Europe does best, soft power.”

 

Banks look for clarity in Brexit negotiations

Michael Theurer, Jens Wilhelm, Sylvie Matherat, Prof. Dr. Uwe Stegemann

Chaired by Prof. Dr. Uwe Stegemann (Senior Partner, McKinsey & Company), the following panel discussion on Europe after Brexit featured Sylvie Matherat (Chief Regulatory Officer and Member of the Management Board, Deutsche Bank AG), Michael Theurer (Member of European Parliament), and Jens Wilhelm (Member of the Executive Committee, Deutsches Aktieninstitut e.V., and Member of the Executive Board, Union Asset Management Holding AG). Diving right into the topic, Sylvie Matherat explained the potential consequences for banks, particularly the difficulties caused by the uncertainty surrounding the Brexit negotiations. Matherat explained that the large banks will prepare for the worst and hope for the best. “For front office people, if you want to deal with an EU client, you need to be based in the EU,” Matherat said. “Does it mean I have to move all the front office people to Germany or not? We’re speaking of 2,000 people.” The situation for banks is quite difficult, as two years is not very much time to move entire operations. Looking past Brexit into the future, Michael Theurer emphasized that it is important to continue with European integration and strengthening the European Union.

Cybersecurity threats a growing concern for all of society

Eugene Kaspersky, CEO of Kaspersky Lab, delivered a keynote on Cybersecurity and Innovation. He explained the scope of today’s cyber risks, detailing specific threats to four critical sectors: power, transportation, telecoms and financial services. Kaspersky Lab collects 300,000 unique malicious objects every day. The cybersecurity pioneer explained that cybercrime costs the world between 375 and 465 billion euros per year, which is almost twice the GDP of Hesse. Kaspersky advised that IT systems need to be safe, secure and immune by design. Looking forward he stated that there is “a lot of work. Starting from the government regulation, education, technologies, implementation and international cooperation.”

Dr. Andreas Dombret

For the first panel on cybersecurity, moderated by international economist Cornelia Meyer, Felix Hufeld (President of the Federal Financial Supervisory Authority (BaFin)) joined Dr. Andreas Dombret (Member of the Executive Board, Deutsche Bundesbank). The panelists discussed regulatory efforts to confront cybersecurity risks. Felix Hufeld detailed BaFin’s newest set of guidelines, BAIT (Bank Supervision Requirements for IT). He explained that “from an individual bank’s point of view managing cybersecurity is one component of what you could consider operational risk. […] Logically speaking, it’s an application of risk management procedures, strategies, governance structures, and what have you, of course applied to a uniquely new challenge.” Dr. Andreas Dombret emphasized the importance international cooperation and for organizations to learn from each other. When asked, what regulators expect from financial institutions, he stated, “if we all agree that cyber-risks are here to stay, the financial institutions we supervise should treat these risks with the same deliberation and the same whole heartedness, so to say, as all the traditional banking risks.”

Education key to creating a safer IT environment

Daniel Domscheit-Berg

Offering another view of cybersecurity, Daniel Domscheit-Berg (Author and Former Spokesperson, WikiLeaks) joined Eugene Kaspersky on the panel to discuss cybercrime and how organizations can best defend against these risks. Domscheit-Berg discussed the human factor often being the biggest weakness for an organization. He explained that “you should make sure that whoever works for you, in whatever capacity, that they not only have good rules, but they also have a good understanding of why these rules matter and why they need to stick to these rules. And if you explain that very well, […] then I think from an educational perspective you’re getting towards a more secure environment.” Kaspersky reinforced the human factor in cybersecurity, discussing the difficulties in fighting cyber criminals. He described this human versus human fight as a chess match and underscored the arduous task of predicting future risks and criminals next moves.

Banks’ critical link to the real economy

Wolgang Kirsch

The Summit’s final panel featured the heavyweights of the Financial Centre Frankfurt in a discussion on the transformation of long-term financing and the future role of banks. Panel moderator, Jens Tolckmitt (CEO, Associaton of German Pfandbrief Banks), was joined by Wolfgang Kirsch (CEO, DZ BANK AG), Michael Rüdiger (CEO, DekaBank Deutsche Girozentrale), and Roland Boekhout (Chairman of the Management Board, ING-DiBa AG). Long-term financing is one of the critical functions banks play in society and a classical area where banks serve the real economy. However, since the financial crisis, the changing regulatory environment has made it difficult for banks to gauge their appetite for taking on long-term risk. The panelists agreed that there is a mismatch in incentives from regulators for banks to provide long-term financing. To meet the credit demand in the market, new actors have become active in this field. Roland Boekhout suggested FinTechs and peer-to-peer financing platforms entering this arena are not likely to gain traction, primarily sticking to short-term products. Boekhout underscored the added value of banks expertise in the credit business and structuring the facility on a risk.

The seventh Frankfurt Finance Summit came to an end with the traditional closing remarks from Wolfgang Hartmann (Chairman of the Executive Committee of the Frankfurt Institute for Risk Management and Regulation (FIRM)). Hartmann reiterated the challenges facing the European financial sector, especially those from Brexit. Additionally, he announced that this would be his final Frankfurt Finance Summit as the Chairman of FIRM.

CFS Index

CFS Index reveals contrasting tendencies

Financial institutions limit job cuts and increase earnings growth – Service providers report slower growth in revenues, earnings and investments

The CFS Index, which measures the business climate of the German financial sector on a quarterly basis, falls by just 0.7 points to 113.6 points. The resulting persistently high level is based on contrasting tendencies. The financial institutions report unexpectedly high earnings growth and make fewer job cuts. The service providers, on the other hand, report a significant decline in revenue and earnings growth, though these levels still remain high. The investment volume of both groups remains positive, though it is not able to maintain previous peak levels.

“The stabilized economic development of the financial institutions is particularly expressed by a gradual rise in earnings expectations, coupled with a strong increase in their earnings generated in the first quarter. This is good news, as it can create the right conditions for urgently needed capital growth among the banks and thus improve financial stability,” Professor Jan Pieter Krahnen, Director of the Center for Financial Studies, interprets the results.

Rating of the future international importance of the Financial Centre Germany reaches second-highest level of all time

Having already been rated extremely positively since the Brexit vote, in the second quarter of 2017 the future international importance of the Financial Centre Germany almost reaches its historic high of 136.8 points from last year. The corresponding value rises by 4.0 points to 135 points.

Dr. Lutz Raettig, President of Frankfurt Main Finance e.V. emphasizes: “The survey clearly shows that the growing trend is intact: the financial sector sees an increasing importance of the Financial Centre Frankfurt. This is a satisfying result and the outcome of increased cooperation between all relevant actors in the financial centre.”

Service providers record significant decline in revenue growth, yet maintain a solid, high level

Growth in revenues/business volume in the financial industry declines slightly, but remains at a solid, high level. Among the financial institutions this sub-index rises by just 0.9 points to 113.9 points. The service providers record a significant decline of 4.0 points, yet remain at a very good level of 126.6 points. Both groups anticipate a further decline in growth in the current quarter.

Unexpectedly positive earnings performance among financial institutions – By contrast, service providers report a considerable decline

The surveyed financial institutions are able to significantly boost their earnings following the weak performance in the previous quarters. The corresponding sub-index rises unexpectedly by 8.0 points to 112.5 points. A year ago the sub-index was as low as 97.9 points. The service providers, on the other hand, report a decline in earnings growth of 5.5 points, though the sub-index remains at a high level of 117.9 points. Both groups, particularly the financial institutions, anticipate a decline in the current quarter.

Financial institutions clearly curtail job cuts

The trend since the start of the year among financial institutions to limit job cuts remains intact. The corresponding employee numbers sub-index shows a significant rise of 7.2 points to 97.6 points, though it still remains under the neutral threshold of 100 points. As for the current quarter, the financial institutions expect job cuts to rise slightly again. The service providers, on the other hand, continue to hire employees at almost the same rate. The corresponding sub-index falls by just 0.1 points to 113.6 points. The service providers are more optimistic regarding the current quarter.

Investment volume remains very positive, but cannot maintain previous highs

Despite a decline in growth, the investment volume in product and process innovations among both groups remains at a strong level. The corresponding sub-index for the financial institutions falls by 2.6 points to 113.5 points. The service providers report a more significant decline of 6.1 points to 111.8 points. Both groups anticipate further declines in the current quarter.

About the Center for Financial Studies

The Center for Financial Studies (CFS) conducts independent and internationally-oriented research in important areas of Financial and Monetary Economics, ranging from Monetary Policy and Financial Stability, Household Finance and Retail Banking to Corporate Finance and Financial Markets. CFS is also a contributor to policy debates and policy analyses, building upon relevant findings in its research areas. In providing a platform for research and policy advice, CFS relies on its international network among academics, the financial industry and central banks in Europe and beyond.

About the CFS Index

The CFS Index is compiled from a comprehensive quarterly survey among 400 decision makers in the German financial sector (return about 50% on average). The survey contains four questions about the participant’s view on different business parameters (business volume, earnings, employment level and investment volume in product and process innovations). The answers to the questions may be given as “positive”, “neutral”, or “negative” and a response is requested for the previous and the current quarter. Due to construction, the maximum index value is 150, the minimum index value is 50; a value of 100 signalizes a neutral business sentiment. The survey-panel consists of enterprises and institutions of the financial industry and selected companies that profit from the financial sector.