February 23, 2022 | Stamford, CT — Europe’s ranks of smaller national and regional banks are coming under increased pressure from the convergence of several powerful trends, including technology-driven changes in corporate business models, companies’ growing need for international coverage and improving economic sentiment.
Over the long-term, these trends could accelerate industry consolidation. In the short term, they are benefitting the largest European banks that dominate the list of 2022 Greenwich Share and Quality Leaders in European Large Corporate Banking and Cash Management.
Throughout the COVID-19 crisis, large European companies were pleased to maintain relationships with a long list of banks to ensure access to credit and other banking services during difficult business conditions. That situation appears to be changing.
“As companies consolidate their banking relationships, they are not cutting the large global and European banks that hold lead banking roles. Rather, they are eliminating the smaller national banks who are engaged largely as backup credit providers,” says Dr. Tobias Miarka, Co-Head of Banking at Coalition Greenwich.
Technology is also playing a role. Companies globally are using technology to transform their business models, with growing numbers of firms migrating to “multi-channel” business models designed to service an expanded universe of customers through a growing number of digital and physical channels. These companies need banks with digital capabilities and platforms capable of supporting these complex models including entirely new infrastructures to process payments and otherwise accommodate retail customers.
“Even the largest global banks are facing pressure to invest and innovate in order to meet corporates’ new needs, and to keep pace with the aggressive non-bank fin-tech players rushing in to compete for this business,” says Melanie Casalis, Senior Relationship Manager at Coalition Greenwich. “In this new environment, Europe’s smaller banks will come under increasing pressure to consolidate in order to achieve the scale required to compete.”
2022 Greenwich Share, Quality and Excellence Leaders
Topping the list of 2022 Greenwich Share Leaders in Large European Corporate Banking is BNP Paribas, which leads the industry in market penetration by a sizable margin, followed by HSBC, UniCredit, Citi, Deutsche Bank, and ING Bank. BNP Paribas is the 2022 Greenwich Quality Leader in Large Corporate Banking.
The list of 2022 Greenwich Share Leaders in Large Corporate Cash Management includes many of the same players, including BNP Paribas at the top, followed by HSBC, Citi, Deutsche Bank, and UniCredit. The 2022 Quality Leaders in Cash Management are BNP Paribas, Citi and J.P. Morgan.
Eight banks are also recognized as Greenwich Leaders for the 2022 Greenwich Excellence Awards in several important categories across European Large Corporate Banking and European Large Corporate Cash Management.
Full list of 2022 Greenwich Excellence, Share and Quality Leaders: European Large Corporate Banking and Cash Management