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Summary
The international trade finance activity of large European corporates continues to increase, with the top three banks being used as a provider by nearly 30% of large European corporates that employ trade finance services.
In order to satisfy increasing international needs, however,corporates report using more banks compared to previous years, in particular for international trade finance. On average, European corporates are active in more regions than their peers in Asia or North America, indicating that Europe-centric banks need broad network capabilities to meet their clients’ needs.
The competitive landscape of trade finance providers in Europe is diverse and fragmented—and becoming increasingly so on both counts. Large European companies have adopted broad strategies for international growth spanning Asia, Central and Eastern Europe, the Middle East and Africa, and North and South America.
As they execute these strategies, they are forming fresh relationships with banks that can deliver high-quality trade finance in these new markets. In fact, this demand for local service and expertise is driving some companies to bypass their traditional trade finance providers in favor of direct relationships with banks domiciled in targeted foreign markets.
MethodologyGreenwich Associates conducted interviews with 327 financial officers (e.g., CFOs, finance directors and treasurers) at large corporations and financial institutions throughout Belgium, France, Germany, Italy, the Netherlands, Nordic countries, Portugal, Spain, Switzerland, and the United Kingdom. Interviews took place from March through June 2014.