Nuclear Finance: Bank Management in Disruption

Aalto Emeritus Professor of Organization and Management, Risto Tainio, together with Dr Anders Kjellman and Dr Taisto Kangas have published a new book on bank management - Nuclear Finance: Bank Management in Disruption:

"It was a time when banks were expanding and then surprisingly exploding. Disruptions like Bitcoin, payment platforms, fraud and nuclear war can fast cause a chain reaction like a devastating nuclear bomb. The banking sector is changing, due to negative interest rates, disruptive financial innovations and technology. It was the beginning of the Age of Nuclear Finance. The Global Financial Crisis followed in the footsteps of the creation of the US shadow bank market that exploded with the default of Lehman Brothers in 2008. The coronavirus, COVID-19, also emerged unexpectedly in 2020 and exploded, sending shock waves all over the world. It was difficult to understand what really happened afterwards. And the next nuclear bomb is waiting around the corner.

We were surprised to find that technology level and bank platform management could not be found as one of the keys behind successful banking. Perhaps this is because banking is more of an issue of trust than technology. Instead, we found that, regardless of which sector of banking you are working in (credit, capital or casino based banking), the 5M’s of banking are relevant. The great bankers know: 1) Money: have sufficient own capital, i.e. 1/10 of the real balance sheet, 2) Markets: know your market(s) and customers, 3) Meaning: make banking easier by building your bank on values, e.g. supporting the surrounding community, 4) Me: equals we, 5) Memories: part of the magic of ongoing banking. Be modest and honest!"

About the authors:

Dr Anders Kjellman is the Managing Director of AKC and former Chairman of the European Investment Bank’s activities in Africa, Asia and Latin-America. He has also worked at the Ministry of Finance in Finland.

Dr Taisto Kangas is a former Bank Manager. He gained international bank experience from Pittsburgh National Bank, American Express Bank and over two decades of co-operation between Der Sparkasse Leverkusen and Oulu Savings bank. He acted as an advisor on the financial crisis in Estonia.

Dr Risto Tainio is a Professor Emeritus of Organisation and Management at Aalto University. He has been a visiting scholar at European Institute for Advanced Studies in Management and Stanford University. He is the author and co-author of several books and articles on the restructuring of banks, and the transformation of the business system, in the era of emerging investor capitalism.

Link to the book ‘Nuclear Finance: Bank Management in Disruption’ on Novum Publishing website: https://www.novum-publishing.co.uk/books/biography-politics-current-affairs/politics-economics/nuclear-finance.html