Capital Creation Reimagined

Fresh thinking on capital creation: partnering with SIX, the University of St. Gallen has assessed the future needs of financial institutes and corporates and identified a potential solution for long-term sustainable growth.

Capital Creation Reimagined
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Like other industries, the COVID-19 pandemic has challenged financial services’ operations, but it also impacted business models in terms of their liquidity and revenue losses. This strengthens the need to create more than purely economic value, which financial institutions are already beginning to create in terms of human, organizational, social, environmental, and symbolic capital.

Looking Beyond the Economic Concept of Capital

New business models are required to incorporate these reflections. Research by students from the University of St Gallen identified a long list of nearly 30 business model ideas. Among these, they focused on elaborating the idea of a platform they called the Impulse Marketplace. 

In the education of students, the collaboration with companies is of high value since only then, the theoretical and conceptual knowledge they gained can be transferred and put to use.

Prof. Dr. Ulrike Baumöl, University of St. Gallen

This platform would enable investments in SMEs – the backbone of economies – and link it with aspects of ESG (environment, social, governance). By leveraging technology and artificial intelligence while cooperating with NGO networks, this marketplace could identify sustainable SMEs worldwide and connect them with investors to enable capital raising and foster sustainable growth.

Visionary Thinking

As a leading market infrastructure operator, SIX is committed to foster innovative and future-oriented thinking, to explore and set new trends. The new white paper Capital Creation Reimagined provides useful and thoughtful insights into how the financial markets ecosystem is changing, and assesses what the infrastructures underpinning them will need to do so as to ensure that they continue to meet client needs and deliver value for customers. 

SIX is proud to bridge with academia as it is crucial to integrate independent research to find pioneering solutions for tomorrow’s needs of the financial industry.

Dr. Maneesh Wadhwa, Business Development Manager, SIX

Long-Standing Research Cooperation 

The University of Saint Gallen has been the breeding ground for more than 100 Spin-off since 2003 and enjoys a long-standing research cooperation with the Swiss Stock Exchange. Most recent publications, produced together with the Institute for Operations Research and Computational Finance (ior/cf-HSG), have focused on auctions in trading, analysing both liquidity-related price sensitivities of closing auctions in Equity markets and the effect of fragmentation on liquidity and price discovery. Since 2017, other areas of joint research have included Pre-IPO assessment, Trade-Supply Chain Finance landscape and Sustainable Finance.