Just as investors questioned the logic of large corporate conglomerates in the 1970s, questions are today being asked of the universal banking business model.

There are few synergies and a plethora of risks to be considered for the bank that wants to offer both retail as well as investment banking. For example, the dream of functional centralisation across business lines has more often turned into an execution nightmare, and the level of complexity has far outweighed the theoretical benefits.