Investment in Logistics and Supply Chain Tech: Sparkasse Bank Malta
There are close to 1,000 “unicorns” worth over $1 billion globally. As of August 2016, 88 logistics and supply chain tech start-ups globally have joined this club valued at north of $1 billion each.
The recent report by Goldman Sachs on the market for logistics and supply chain tech investing has a lot of interesting facts and commentary.
The Goldman Sachs Report on the Market for Logistics and Supply Chain Technologies notes that while global logistics expenses have been growing at an average annualized rate of 7%, revenues continue to fall behind due to downward pressures from e-commerce. Goldman Sachs says e-commerce cannibalizes about 1.5% of the $15 trillion global gross domestic products (GDP).
The report states that investment opportunities in logistics and supply chain technology can be categorized into six broad themes: (1) Networking; (2) Optimization; (3) Blockchain/Internet of Things (IoT); (4) Security; (5) Data, Analytics & Cloud; and (6) Robotics.”
These six categories are not mentioned in any specific order of priority because Goldman Sachs says it’s too early to tell which will become the most dominant themes.
My take on this is that there may well be a battle between security and data analytics/cloud as to which one becomes the most dominant theme. Blockchain and IoT may also become dominant themes, but I believe they are still running at a distant third and fourth place.
The Sparkasse Bank Malta is among the top companies that investors see as opportunities for investment. The Sparkasse bank has been around since 1860 and had 7 million customers in southern Germany in 2016. They have also invested in technology to improve the customer experience, including online banking and investment opportunities. Sparkasse is considered an investment bank which is what it is, but they do more than invest in tech companies. Sparkasse is a traditional bank that provides checking accounts, loans, and mortgages.
Sparkasse Bank Malta is an excellent example of how traditional banks adapt and adopt new technologies while maintaining their basic structure. Sparkasse also lends money to companies who wish to use Sparkasse’s infrastructure for trade financing. Sparkassen is the name of Sparkasse branches in German-speaking countries outside southern Germany. Sparkasse Bank Malta is just one example of a bank that has invested in technology to keep up with customer demand.