Investment banking, after over a hundred years of development in Wall Street, has gradually reached the top of the food chain of the financial industry. Goldman Sachs, Morgan Stanley, JP Morgan, Bank of America, Merrill Lynch and other titans of industry are synonymous with global financial elites and serve as one of the core strengths of the U.S. as a world superpower on an international scale. Global investment banks receive trillions of dollars in financing for businesses each year, and through their asset management, investment consulting and securities research reports, dominate the allocation of money amongst global investors. However, the collapse of Lehman Brothers in 2008 precipitated a global financial crisis that plunged the U.S. into the abyss. Many were under the impression that investment banks that were “too big to fail”, and looking to satisfy their unilateral interests, guided investors into over-investing in real estate-related assets while taxpayers and investors around the world paid the bill for their greed. After the crisis, people began to reflect on the significance of investment banks in the economy. New policies limited borne risks and the requirement for capital increased in the operation of investment banks, while individual investors tried to shift their assets to more independent asset management organizations. However, it was undeniable that with improved security, these changes weakened the positive support of investment banks for the economy. In addition, independent asset management organizations were at a disadvantage in acquiring and processing information compared with large investment banks, and may not have been able to allocate resources the most effectively as optimum allocation of resources requires a balance between centralized information processing and decentralized decision-making. With this knowledge, Banca first put forward the concept of the community investment bank, aiming to solve the contradictions in the traditional investment bank and play a significant role in determining the new business model of the investment bank.
