Asia-Pacific banks with regional aspirations have been steadily ramping up their transaction banking operations over the past few years. They recognise the importance of a solid transaction banking offering in diversifying their income streams and building closer – and ‘stickier’ – relationships with corporate clients. Being the primary account holder and lead relationship bank for a corporate provides the bank with sustainable shares of that customer’s business over the long term.
Two macro trends are fuelling this expansion. First, the ongoing economic challenges and regulatory environment following the global financial crisis in 2007/08 are forcing many top tier global banks to either pare down their cash management and trade finance products and services in the region, or exit it altogether. Corporates operating in Asia-Pacific have been forced by necessity to diversify their core banking group and incorporate regional players to safeguard critical financial flows.
