Up your spending or leave: Barclays threat to ditch 7,000 investment bank customers who generate lower profits
Barclays is to tell 7,000 investment bank customers they have to up their spending or go elsewhere.
The lender has already axed 17,000 institutional clients since 2014 as it fights to increase profits.
The bank's markets unit is now looking to cut out more of those customers who generate too little activity to bring in a solid profit.
Purge: Barclays is looking to cut out customers who generate too little activity to bring in a solid profit
Barclays has launched a computer system called Flight Deck which ranks customers by the returns they generate.
The top 500 clients are ranked into gold, platinum and diamond levels, while those at the bottom face the risk of being purged.
'We have the returns figures, so we can go and have those tough conversations with clients that don't meet our hurdles rates,' senior banker Kashif Zafar told Bloomberg.
'We're not in the old-school business of doing big revenue with poor returns. That's a failing strategy.'
The lender's division will have about 8,000 clients left after the less active ones have been hacked back.
Barclays is the latest in a string of investment banks to focus more closely on busy customers who can repay the attention lavished on them.
Its rivals Deutsche Bank, Citigroup, Morgan Stanley and HSBC are all taking a similar approach.
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