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Today: Jun 13, 2024

US banks dominate the European midmarket.

2 mins read

TLDR:

US banks are expanding their presence in the European midmarket as they leverage their investments in digital technology to transform payment and transaction services. These banks view their global reach and digital capabilities as key factors that will enable them to capture even more revenue from Europe’s midsize corporates. The US banks already dominate the investment banking industry in Europe and are now looking to expand their market share by offering digital payments and transaction services to midsize corporates.

Key Points:

  • Leading US banks are targeting Europe’s midsize corporates to capture more revenue from the region.
  • These banks view their investments in digital technology and their global presence as key factors that will enable them to succeed in the European midmarket.
  • The US banks already dominate the investment banking industry in Europe and are leveraging their digital capabilities to expand their market share.
  • By offering digital payments and transaction services, the US banks aim to capture even more revenue from Europe’s midsize corporates.

US banks are expanding their presence in the European midmarket as they leverage their investments in digital technology to transform payment and transaction services. These banks view their global reach and digital capabilities as key factors that will enable them to capture even more revenue from Europe’s midsize corporates. The US banks already dominate the investment banking industry in Europe and are now looking to expand their market share by offering digital payments and transaction services to midsize corporates.

The chief executive of one of Europe’s largest banks is being questioned about the bank’s capacity to grow fee revenues in light of falling net interest income. He discusses the challenges faced by another large European lender, which has seen its shares trade at a wide discount and is facing pressure from investors for a strategic reset. The CEO suggests that the bank has failed to cut back on global investment banking, a mistake that his own bank recognized years ago. He emphasizes the need for scale and selectivity in geographies and businesses to compete successfully in banking.

The US banks are confident that their investments in digital technology and global presence give them a competitive edge in the European midmarket. By offering digital payments and transaction services, these banks aim to capture even more revenue from midsize corporates in Europe. They see their digital capabilities as a way to differentiate themselves and provide value-added services that will attract customers. The US banks already dominate the investment banking industry in Europe, and they are now leveraging their digital capabilities to expand their market share and tap into new revenue streams.

Commenting on their strategy, Alex Stiris, Head of Treasury and Trade Solutions EMEA at Citi, said, “The core of our pitch is that if customers consolidate all that onto our platforms, they can see their entire global and local cash positions all in one place. That gives real efficiency and automation across their cash management operations, as well as an aggregated view of their global cash positions.”