Thursday, October 12, 2017 Stamford, CT USA —The 2017 Greenwich Share Leaders in U.S. Large Corporate Banking and Cash Management have one thing in common: They all saw their market footprints shrink last year, several intentionally.
J.P. Morgan and by Bank of America Merrill Lynch are the leaders in U.S. large corporate banking market. According to new research from Greenwich Associates, 85% of large U.S. companies use Bank of America Merrill Lynch and/or J.P. Morgan for corporate banking services. In third place is Wells Fargo at 77%, followed by Citi at 64%, HSBC at 45% and Bank of Tokyo-Mitsubishi UFJ and U.S. Bank tied in fifth, each with 44%. These firms are the 2017 Greenwich Share Leaders in U.S. Large Corporate Banking. Bank of America Merrill Lynch and J.P. Morgan both also claim the title of 2017 Greenwich Quality Leader in this critical category.
“After the implementation of new capital requirements, large U.S. banks and top global banks are looking to grow their corporate banking revenues by earning more of the global and domestic wallets of their best customers, rather than competing aggressively for new customers,” says Greenwich Associates Managing Director Don Raftery.
Japanese Banks Lead an Evolving Lead Charge into U.S. Corporate Banking
This change is creating new opportunities for regional U.S. banks and several foreign competitors making a strong push into the U.S. market. Leading this charge are Japanese banks like Bank of Tokyo-Mitsubishi UFJ and Mizuho.
Given the meager returns on capital in the near-zero interest-rate environment of their home country, these banks have the incentive to lend to companies in the U.S. The major change has been the meaningful increase in use of Japanese banks for non-credit products including: FX, trade finance and interest-rate derivatives. Japanese banks are not the only foreign competitors gaining ground. Demand is rising sharply for services to support U.S. companies’ growing international businesses. In both corporate banking and cash management large companies are adding providers to cover business in Europe, Asia, Latin America, and other markets—a trend benefitting both foreign banks and large U.S. banks with robust international networks.
Increased Demand for Bank Credit—Finally
One of the big mysteries about the relatively slow pace of the U.S. economic recovery since the global financial crisis has been persistently low corporate borrowing rates. Regardless of the cause of that soft demand, a surge in corporate use of bank credit last year is good news. Overall, the share of large U.S. companies using bank credit jumped to 95% in 2017 from 88% in 2016.
2017 Greenwich Excellence Awards in U.S. Large Corporate Banking and Cash Management
This year, Greenwich Associates debuts a new series of awards to recognize the best providers in U.S. Large Corporate Banking and Cash Management. The 2017 Greenwich Excellence Awards identify the top-ranked banks in a series of product and service categories, including: Ease of Doing Business, Provides Advice, Likelihood to Recommend, Knowledge of Transaction Banking Needs, Knowledge of International Banking Needs, Accuracy of Operations, Customer Service, International Product Capability, Domestic Product Capability and Overall Digital Platform. Winners are determined from quality ratings assigned to each bank from their large corporate clients.
Full List: 2017 Greenwich Share and Quality Leaders in U.S. Large Corporate Banking and Cash Management
Full List: 2017 Greenwich Excellence Awards in U.S. Large Corporate Banking and Cash Management