Finances & Money

What Is A Financial Intermediary?

CleverDude_SwagbucksMoneyPicA financial intermediary, to put it simply, is a financial institution such as a bank, investment bank, insurance company, building society, and micro credit providers, pension fund, which exists to consolidate deposits and transform them into loans. Financial intermediaries channel surplus assets/resources from those who have them, to those in need of extra assets/resources. Financial intermediaries come in all sizes and scope, from small public banks, to global powerhouses like Cathedral Investment Bank. Generally, financial intermediaries serve the following core functions:

  1. Credit- financial intermediaries provide credit facilities to qualified clients, collecting loan premiums in return. Short term liabilities are converted into long term assets. These credit facilities enable homes to be build, companies started, projects completed and the list goes on.
  2. Risk Transformation- Financial intermediaries transfer risk and risky investments into less risky forms of investment by spreading risk around their numerous loanees. With more sources from which to recoup debt, risk inherently becomes lessened.
  3. Convenience or Matching- financial intermediaries bring together those who are seeking credit with those who wish to provide funds. Rather than searching in futility for an entity willing to loan funds to/from, at agreeable terms to both parties, financial intermediaries act as middlemen, offering agreeable terms to both sides and facilitating the transaction.

All stand to gain from the use of financial intermediaries, from the individual who uses a commercial bank, to the smaller commercial banks who utilise the services of larger, global banks like Cathedral Investment bank. The benefits of using a financial intermediary, like Cathedral Investment Bank, are as follows:

  1. Lower Costs- the costs associated with searching for financial partners can be quite high and daunting. Due diligence costs associated with high value transactions are invaluable and astronomical. If agencies are no specialists in the financial transaction and regulations surrounding the transaction, then clients may find themselves having to hire an army of consultants, at considerable cost, to ensure that proper due diligence is undertaken before any major financial transaction is enacted. Smaller banks may also find it difficult to leverage interest from high value institutions and clients as they may lack routine working transactions at that level. Working through a financial intermediary like Cathedral Investment Bank saves time, money, effort and peace of mind, knowing that the specialist areas regarding unfamiliar transactions are being handled by a competent, expert team who provide the latest technology and top notch analysis for much less than the costs of hiring separate consultants. Our fee/fees are some of the lowest in the field, while our teams of analysts are second to none in securing the right investment vehicle sought after by another bank and its clients.
  2. Risk Management- All financial transactions carry some degree of risk, this is why Cathedral has risk mitigation devices such as insurance. With us at Cathedral Investment Bank, mitigating this risk through our global network of clients, ten thousand (10,000) strong and backed by some of the giant names in world finance. Smaller banks know that with Cathedral Investment bank, they can feel secure in the knowledge that our team of experts have done more than the required work in all areas, from jurisdictional restrictions to international financial regulations.
  3. Economies of Scale- A basic economic principle, this simply implies that certain functions will become cheaper as the entity performing them becomes larger. This occurs for several reasons, lower variable costs, lower fixed costs per unit, more expertise for efficient performance and others. Cathedral Investment Bank is already setup globally, with a network, staff, IT and packages that are second to none. Banks will enjoy the economies of scale benefit to any transaction conducted through various departments.
  4. Economies of Scope- Because the focus of a financial intermediary is on the needs of the clients, various methods of use for the same inputs are developed. The Private Banking Department at Cathedral Investment Bank is highly rated for its development of global investment vehicles. Cathedral thinks inside and outside the box to develop packages that are perfectly suited to the needs of clients.

Cathedral Investment Bank for Banks

Cathedral Investment Bank is highly rated as a bank for banks. Cathedral offers low cost options and access to the latest in financial analytical technology. Dedicated departments assist in planning and approvals of vast projects routinely and can seamlessly match the ambitions of another bank to investors who have the funding to help realise those ambitions. Cathedral Investment Bank has a myriad of options and packages that allow banks to achieve its full potential and ambitions. With our seven worldwide branches and thirty five nations of operations, Cathedral Investment bank can reduce client’s compliance, administrative and banking burdens because the legal teams are more than proficient at negotiating local jurisdictions and ordinances. Cathedral operates on the global market, partnering with some of the largest companies in that market and as such can also assist banks in the negotiation of global financial regulations. With regard to business restrictions and reporting, Cathedral Investment Bank are again experts in the field, with both local restrictions and international restrictions fully understood and adhered to, circumvented or applied as necessary. Cathedral Investment Bank has a diversified yet solid portfolio and a multitude of services, making the financial packages and options available to clients near limitless. Some of the services/packages offered include:

  1. Cash/Currency- A number of services available at Cathedral Investment Bank or through any global partners that can be of great help to any bank in the management of its cash and currency supplies and transactions. Cathedral offers Fx Web, a portal to U.S. foreign exchange banking, a powerful tool that saves any bank time and money, as well as increases tech security. They provide interchange, eliminating the cross fees associated with these and other card based transactional fees. White labelling is also an option, banks can offer products repackaged and rebranded with other banks own logo and theme. Cathedral’s global reach grants access to products likely unattainable by a smaller bank. Cathedral Investment Bank also offer services like STP, CLS, post trade services and the Cathedral Central Link.
  2. Securities- Cathedral Investment Bank has a variety of securities based services and departments to help other banks make the most of their investments in the securities market. TO start, Cathedral Investment Bank develops new securities, from the international reach of over ten thousand partners and clients in thirty five countries. Cathedral Investment bank also facilitates securities ventures by assisting with ordering, handling, and execution of securities. Cathedral Investment Bank also offers clearing, settlement and custody services for banks securities investments.
  3. Asset Management- With Cathedral Investment Bank, assets will be handled by the best experts in the field, utilising a variety of tools, technology and analysis, all cutting edge, to ensure assets are not only maintained, but grow according to scheduled plans. Cathedral Investment Bank will design a suite of investment products from which other banks can choose options best suited to their ambitions. Banks will have access to institutional sources of funding from Cathedral’s enormous global partnership and have those assets managed and carefully overseen. Cathedral Investment Bank is also another banks gateway to private investment funding as well.
  4. Private Banking- The Private Banking department at Cathedral Investment Bank is a global leader in providing private banking services at the highest levels. With Cathedral Investment Bank other banks will have access to exclusive private banking customer solutions and service.
  5. Corporate Finance- Cathedral Investment Bank is a global leader in corporate finance and dedicated corporate finance department is the best at getting the highest return on initial public offerings (IPO). If banks want the investment needed at the highest levels for its clients, Cathedral Investment Bank will have all the necessaries to get the right investment vehicle for the right needs.
  6. Trade and Export Finance- Cathedral Investment Bank provide services from the very beginning of another bank’s journey into the field of export finance, to the back end. Cathedral provides structural advice, liquidity management, trade related financing and short medium and long term export credits. We will work to transform another banks risk, or protect the bank from risk through the international expertise in varying jurisdictions.

Contact Cathedral Investment Bank Today

Cathedral Investment Bank is a leader in the world of bankers banking. Cathedral Investment bank is fully staffed with experienced professionals to assist in the multitude of decisions regarding another banks needs and ambitions as well as the needs of other banks clients. Lowered costs, expert analysis, due diligence, management expertise, and consultancy, global reach and global partnerships are all a call away, just contact Cathedral Investment Bank. Cathedral has branches in seven countries worldwide, and conducts business/operations in thirty five nations.

Edward Gier took the reins at the Cathedral Investment Bank as its Executive Director last year. The week before he took the office, he’d been in Auckland working out of the new Head Quarters. Although he lives in Wellington he tries to get to the city every other weekend to see his children that are studying there. (He also has two step children in Hamilton.)

The day began early in Auckland, “4 AM it’s already late for me”. He took his children to school, did a day in the office and left in time to pick the kids up from school again. It was back to work after that in the HQ.

“This is my normal routine when I am in Auckland, but in Wellington is a different story, you never have time to spare although I have been trying to change that since I got here”

“As an employer who wants employees to feel fulfilled, acknowledging they ‘have a personal life’ is very important for the company,” says Edward, “that’s why when I am here I try to be a normal person” says Edward whose children are demonstrably important to him.

When Gerald spoke to Edward for this interview, he’d been in the job for six months. It was December and he was in the middle of the Cathedral´s Bank Yearly Christmas Party. The issue of the end of year was not a business and economic priority for Edward, but just because he has children then it became “its most important time of the year”.

As part of the Christmas and New Year’s Celebrations, Cathedral Investment Bank had released its Plan Ahead Financial Guide for Growing businesses. One of the key point within the Cathedral´s presentation is pointing out the difficulties that most small companies encounter when trying to grow.

What then would this Executive Director’s advice be to his children?

“Explore the density and complexity of the world in your 20s. Don’t make any assumptions about what you will really enjoy doing. Let life unfold. The more things you expose yourself to the more you’ll be open to finding your passion.

“I know it sounds like a cliché, because it maybe is” he continues, “but if you find something you are passionate about here, then you never work a day in your life’, this way of living life I love working at Cathedral Bank and this motto has certainly worked for me.

“My hope for my children is that they find that special something they are passionate about, I encourage them to do to the best of their ability and they will be fulfilled and happy.”

Banking is Edward Gier’s passion, and he admits he’s lucky to have discovered his early.

Growing up in Australia he remembers being set the task in Grade 10 of writing on “anything” for an English essay.

“I was 16 and I couldn’t work out what to write about. My teacher said, buy the New York Times and see what’s in there. That changed me forever.

I thought to myself that just reading the NYT might be interesting. At the time the Less Developed Countries debt crises was in all the papers.

A number of Latin American countries had defaulted on these huge loans and the implications were beginning to show out at large.

Cathedral Bank has a strong presence in Latin American countries and maybe this is why I was always interested in Cathedral, they do allot of things in Latin American Economies.

Thanks to friends in Australia I had the chance to meet a senior banker living near me, who was involved and who offered to explain what was happening in a 15 year old language.

“I had so many doubts about what I was reading and I do remember that at one point I was asking him what the loans were for. His answer blew me away.

He answered; the countries, that were desperately poor they needed this money to build , services like water, gas, to build also roads and hospitals, so that people could rise out of poverty into a better life.

“That’s interesting I thought, without banks playing this vital role in that economic development of such country they will never get out of poverty.

I started to dig out on the news and other places and whenever I had a choice to study, I always chose something that had a tangential relationship to banking.”

It really changed me.

Having negotiated corporate life successfully, you wonder what else might have helped this little guy develop such a long-held passion for banking.

“I’ve always been interested in what banking does to business and the operation of businesses itself. My first ‘job’ ever was selling crayons at school,” says Edward, alluding to the fact that Crayons had just launched a new set of colors in an easily purchasable wholesale pack and he bought packs to sell it to other friends at school individually.

“I also loved sports – team and individual sports – but I must confess I loved to study as well, I was a high class with nice grades, my Dad was proud.

My life has not been formed by sports or grades it’s the curiosity that drove me her, it has formed my life.

I’ve always been curious about things and to some extent I also are a little obsessed. I would find a topic I like or that I was interested in and get every book out of the library on it or I would google the hell out of it till midnight.

Sports were the fascination at the time and Edward remembers that in college when the Olympic flame came or better said passed by, I remember feeling the luckiest kid in the world. My school allowed us to go to where the torch passed I loved that,” he explains.

IT, and technology in general is tremendously empowering to people, at least that’s what I believe, allowing people to engage with information at their own pace and in their own time, and way its amazing. For customers, Edward continues, that adds up to better reporting to good information and key decision making.

Banks that are Clients of Cathedral Investment Bank have the benefit of amazing reporting information that will end up resulting good banking experiences for their clients.

So what, according to the Executive Director, does “good banking for banks” looks like?

“We are here to support economic development from all countries we work with, to support customers which are other banks that need their customers to grow their businesses, in some cases those banks need to manage their clients’ money… We are not here to sell Fund management services but to help banks help their client’s bank. We are not here to sell mere products but to help those financial institutions to be better, to serve the public. We are a service industry and the moment banks lose sight of that purpose, you get bad banking.

“It’s really simple, if the countries that we work with are to benefit and we are to benefit then it starts with our customers and helping them to be more successful and more profitable. As one of the oldest financial company, Cathedral Bank played this role from day one.

Before joining Cathedral Bank, Edward worked as chief executive of Barclays. He has also held senior roles at most banks in the region, which he joined after moving back to New Zealand a few years ago.

The reason for the change was that I love New Zealand, and I get “way more satisfaction and quality of life” by living here.

On his new role, Edward concludes; “I know that part of my job is to lead, to advocate for the bank and the clients, for the banking industry, for the country itself.

“If we want to understand the global market and make good decisions for our clients that ultimately affect their clients who are regular people then we need the best possible talent available on board. We have worked to achieve this in the last few months, Cathedral Bank is where those talented people would like to work I think, this is what we are achieving and I think will help how our clients work, we are trying to change our clients yes, because we want better banking services to our client clients, we want better banking for everyone,” he adds.

Feeling Clever? Join our newsletter!

Subscribe to get the latest from "Clever Dude."

Powered by ConvertKit

About the author


Leave a Comment