24 Feb 2005, Rob Shepherd, Risk magazine
Mark Stokes, sales and marketing director of Lloyds TSB Financial Markets in London, said that since last year, the bank has grown its presence in the mid-corporate segment to better fulfil the needs of its internal franchise customers. "This approach has required an expansion of our capabilities in this area, and is a process we will continue in 2005. Early results are positive, with a notable increase in take-up of our risk solutions," he said.
As a result of the growing interest, banks will be looking to make hires to focus on these corporates, said Simon Head, director at search firm Alexander Mann in London. "Mid-cap corporates as a client base are assuming more and more importance - this has a positive effect in attracting sales individuals who would previously only wish to cover the big caps, and individuals from other product areas such as rates and commodities," Head said.
However, he pointed out that some banks would continue to focus on blue-chip companies. "The move to increase market share among mid-cap corporates is driven by the commercial banks, rather than the US investment banks. These organisations will continue to focus on the large cap players," he added.