Why has the Eurozone Banking Index lost over 60% of its value since 2007—and can anything be done about it? That’s the question that drove Pablo Clavero and Guillermo Errasti, graduates of the Master in Finance ’24 at Advantere, to develop their capstone project: Finance Students Analyze EU Banking Strategy. This project is a deep dive into active investment alternatives in the European banking sector.
A Capstone Rooted in Real-World Market Behavior
Instead of accepting the sector’s sharp decline, Pablo and Guillermo set out to prove that a passive investment strategy isn’t the only option. They built an active management model using simple bank valuation methodologies already used in academia. Their goal? To demonstrate that higher returns are possible through smart, data-informed decision-making. This type of approach is at the heart of their project, where finance students analyze EU banking strategy using real data and methods.
The Challenge of Modeling a Complex Sector
The banking sector is notoriously difficult to model. Accessing relevant financial data and implementing machine learning tools and cross-validation techniques in Python pushed the team’s technical skills to the limit. Yet, despite challenges and imperfect results—impacted by the sector’s turbulence—they developed a robust framework that can be refined and applied by real-world financial institutions.
A Strategy with a Future
Despite the market’s volatility, their project holds value for investment managers looking to outperform traditional indexes. Their belief is clear: with the right metrics, even sectors with long-term losses can hold hidden potential. When finance students analyze EU banking strategy, they not only challenge assumptions but also propose practical tools for the industry.
Teamwork, Ambition, and Growth
Looking back, Pablo and Guillermo describe their capstone as ambitious, challenging, and rewarding. They also highlight the value of teamwork and recommend pursuing the project abroad. “Doing our Capstone in pairs gave us a real sense of how professionals work—especially in the careers we’re pursuing.”
What Are Capstone Projects?
Capstone projects at Advantere challenge students to apply their knowledge and skills to real-world problems. These projects emphasize innovation, teamwork, and practical problem-solving. By bridging academic learning with professional application, capstones prepare graduates to become leaders and changemakers in their fields.
Capstone projects like this prepare students to address complex financial problems with creativity, technical skill, and teamwork. If you’re ready to take your career to the next level, explore our programs: Master in International Management, Master in Finance, and Master in Talent Management (HR).