Why Consulting Firms Are Building Their Own Banks

Episode 29 of Service Business Talks with Fexingo: Lucas and Luna explore the surprising trend of consulting firms launching their own banking and lending arms. They zero in on one concrete case: how a top-tier strategy firm built a captive bank to offer working capital and acquisition financing to its clients, and what that means for the traditional consultant-banker relationship. The hosts break down the economics—why a consulting firm can lend at better rates than a commercial bank, how regulatory capital requirements work differently for captive banks, and the strategic logic of capturing the financing spread. They also discuss the risks: balance-sheet concentration, talent competition with Wall Street, and potential conflicts of interest with existing client-advisory work. By the end, listeners will understand why a consulting firm might want to become a bank, and whether this model is likely to scale. #ConsultingBanks #CaptiveBanking #StrategyFirms #ManagementConsulting #Financing #Lending #McKinsey #BCG #Bain #PrivateEquity #WorkingCapital #AcquisitionFinancing #ProfessionalServices #Business #FexingoBusiness #BusinessPodcast #ServiceBusiness #ConsultingTrends Keep every episode free: buymeacoffee.com/fexingo