While global banks retained their top positions as Greenwich Leaders in Asian Large Corporate Banking, the stability of this list masks a structural shift taking place across the industry.
The large global banks that have long dominated Asian corporate banking still rank as the industry leaders in the region, but as a group they are much diminished. New regulatory and compliance requirements, mounting costs and serious balance sheet pressures have forced global banks to retrench and, in extreme cases, completely exit Asian corporate banking markets, leaving the industry in flux.
As these important players reduce or redefine their presence in the region, companies are experiencing a dip in their coverage intensity and service quality and at times, seeking replacements. In cash management, strategic shifts on the part of global banks are causing some large Asian companies to question the long-term wisdom of relying on these providers for such a mission-critical service.
Domestic Banks Up Their Game
Enter Asia’s domestic banks. Just as they did in the days following the global financial crisis, local Asian banks are capitalizing on the opportunity presented by the pullback of their global rivals.
“Leading local banks in the 13 Asian country markets we cover are much better positioned to take advantage of the travails of global rivals than they were five years ago,’” says Greenwich Associates consultant Paul Tan. “They have been steadily building out their own capabilities and increasing the quality of their own products and service.”
The results of these industry shifts appear to be a rapid de-concentration of the market, which Greenwich Associates believes will lead to more specialization in bank strategies and in corporate banking relationships.
2016 Greenwich Share and Quality Leaders for Large Corporate Banking
HSBC tops the Asian large corporate banking industry with a market penetration score of 60%. Next is Standard Chartered with 50%, followed by Citi at 44%. ANZ Bank and DBS Bank are tied for the fourth spot with a market penetration of 33–34%. These banks are the 2016 Greenwich Share Leaders in Asian Large Corporate Banking.
The 2016 Greenwich Quality Leaders in Asian Corporate Banking are ANZ Bank and HSBC.
2016 Greenwich Share and Quality Leaders for Large Corporate Cash Management
In cash management, HSBC tops the industry with a market penetration score of 37%. Next is Citi at 32%, Standard Chartered at 24%, Bank of China at 16% and Deutsche Bank at 15%. These banks are the 2016 Greenwich Share Leaders in Asian Large Corporate Cash Management.
The 2016 Greenwich Quality Leaders in Asian Large Corporate Cash Management are Bank of America Merrill Lynch, Citi and HSBC.