March 19, 2024 — European corporates are consolidating their banking business with key relationships that provide superior service quality, robust digital platforms and comprehensive international networks. As they do so, increasing numbers of large companies are opting to partner with global banks and Europe’s largest regional banks as lead providers. 

“European CFOs and treasurers have a clear agenda in 2024: they are working to simplify their treasury operations, enhance efficiency and create a foundation for growth in an increasingly volatile and competitive marketplace,” says Tobias Miarka, Head of Corporate Banking at Coalition Greenwich and author of Corporate Quest for Efficiency Rewards Global and Large European Regional Banks. “Upgrading the capabilities and quality of their banking providers is seen as a key part of that effort.” 

To achieve efficiency goals, many companies are offering incentives to top performing banks. In corporate banking, cash management and other essential functions, European corporates are directing a growing share of their business and fees to lead providers capable of delivering the best service, products and advice. 

For example, in 2022, European corporates allocated 38% of their cash management business to their lead banking provider and in 2023, that share jumped to 46%. Companies participating in the Coalition Greenwich Voice of Client – 2023 European Large Corporate Cash Management Study consolidated business in a similar manner across other banking functions. This “winner-take-all” approach appears to be working in favor of global banks, as the percentage of large European corporates naming a global bank as a key provider in cash management jumped to 34% in 2023 from 30% in 2022. Europe’s largest regional banks are also benefiting from the consolidation of banking business with lead providers. 

“Banks are winning business in Europe by delivering top quality in product offerings, international networks and capabilities, and client service,” says Tobias Miarka. “Notably, pricing and a willingness to extend credit rank well behind these primary factors when it comes to determining which banks large corporates choose in corporate banking, cash management and other functions.”