There is a perceptible shift in the global banking axis. Firstly, banks that have traditionally held sway on a global scale are rethinking their expansion strategies, withdrawing to their local markets for consolidation. This is opening the field to highly ambitious newer players with the stamina and drive to go the distance. Secondly, with the opening up of their economies, emerging markets across the world are fertile ground for two-way trade and business expansion. This is allowing successful banks in these regions to progressively expand their footprints across borders, following in the footsteps of their corporate clients.
Banks on the expansion path address these opportunities in several ways. In our experience, we see four kinds of operating models in vogue: the international branch network, the super-regional bank, the international wholesale bank, and the global transaction bank. Depending on the economic profile of the base country, its geo-political position and history, and their own growth strategy, among other factors, banks tend to adopt one or the other model. Some banks move progressively from one model to the next as a strategy for growth.
