To arrive at an answer, institutions will need a deep understanding of the growth
forces, as well as the associated regulatory and competitive challenges, in Asia’s
expanding wholesale-banking market. Recent McKinsey studies—including
detailed surveys of over 100 large and almost 200 mid-size wholesale-banking
clients in Asia, as well as a poll of 45 of Asia’s top banking executives—provide
a foundation. Three large opportunities come to the fore: the rapidly growing
mid-corporate segment, a potential inflection point in the growth of Asia’s capital
markets, and the continued expansion of regional transaction banking.
Each of these three opportunities represents a 2015 revenue pool in excess of
$130 billion. More importantly, all three are open to strategic moves, with neither
domestic champions nor global giants holding an insurmountable advantage.
Instead, each institution will need to build new skills to make a credible play. For
example, local incumbents are likely to need new risk-management infrastructure,
while the international players will need to tailor their existing risk practices more
closely to local markets.
Success will therefore depend not on dramatic gestures but on a clear-eyed
willingness to change in response to Asia’s unique demands. Those institutions
willing to do so will reap the greatest rewards from the world’s most dynamic
wholesale banking region
To arrive at an answer, institutions will need a deep understanding of the growth
forces, as well as the associated regulatory and competitive challenges, in Asia’s
expanding wholesale-banking market. Recent McKinsey studies—including
detailed surveys of over 100 large and almost 200 mid-size wholesale-banking
clients in Asia, as well as a poll of 45 of Asia’s top banking executives—provide
a foundation. Three large opportunities come to the fore: the rapidly growing
mid-corporate segment, a potential inflection point in the growth of Asia’s capital
markets, and the continued expansion of regional transaction banking.
Each of these three opportunities represents a 2015 revenue pool in excess of
$130 billion. More importantly, all three are open to strategic moves, with neither
domestic champions nor global giants holding an insurmountable advantage.
Instead, each institution will need to build new skills to make a credible play. For
example, local incumbents are likely to need new risk-management infrastructure,
while the international players will need to tailor their existing risk practices more
closely to local markets.
Success will therefore depend not on dramatic gestures but on a clear-eyed
willingness to change in response to Asia’s unique demands. Those institutions
willing to do so will reap the greatest rewards from the world’s most dynamic
wholesale banking region
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