(3 August 2026 – Global) East & Partners Global Analyst Meeting Insights presents a detailed summary of emerging banking thematics highlighted at the intersection of East’s global banking client base and demand side “voice of the CFO & treasurer” research base.
What Makes an MFI an MFI in the Eyes of Leading CFOs and Treasurers?
As relationship management increasingly becomes a competitive differentiator for leading banks, is a main financial institution (MFI) viewed more as a primary transaction bank or lender?
In what capacity do global corporates primarily view their bank?
MFI status, often termed “lead bank,” “primary bank,” or “house bank”, is gauged differently in commercial banking than in retail in a similar way to advocacy measures such as NPS.
Over two thirds perceive their primary banking relationship as transaction banking based (70 percent) Key reasons CFOs view their financial institution as a transaction bank more so than a lender include improved liquidity management/cash visibility (48 percent), overall relationship strength (40 percent), cost efficiencies achievable (20 percent), integration strength (18 percent) and enhanced compliance support (14 percent).
This has however not always been the case – during periods of financial strain and illiquidity such as the GFC corporates turned to their bank primarily as a lender for debt funding needs. Of the 30 percent of firms who view their core relationship as lending based now, they are primarily motivated by managing high interest rate exposure (80 percent), working capital management (58 percent), negative economic sentiment (35 percent) and operating high debt ratios (26 percent).
Incumbent global TB majors including Citi, HSBC, JPMorgan and Standard Chartered are facing greater pressure to fend off stern competition from emerging challengers such as BNP Paribas, DBS and BOC. To win more RFPs leading banks include a unique selling proposition with real “cut through” emphasising proven coverage capabilities, credit commitment and readily available industry knowledge via leading relationship management.
Stay tuned for enhanced analysis delving deeper into the evolving nature of MFI perceptions.
What Separates Leading Transaction Banks From the Rest?
Cash and payments continues to represent the core foundation for customer engagement among CFOs and treasurers as the rush towards enhanced automation, real-time analytics and cash flow forecasting sparks an “arms race” for leadership among major global banks. As competition intensifies the name of the game is now firmly seamless aggregation and integration with associated services.
East & Partners long running global Cash & Payments services reveals customer switching intent has accelerated to a record high. Over 1 in 3 firms plan to switch in the next six months as average transaction banking (TB) account lives shorten. What is driving elevated churn? How do leading banks stand out?
Greater pricing competitiveness (48 percent), improved collateral requirements (18 percent), proactive engagement (17 percent) and more flexible terms (16 percent) are key drivers of record high switching intent.
Customer loyalty is deteriorating rapidly as customer switching intent increases to a record high in multiple markets. Incumbent leaders face growing pressure limiting wallet share “leakage” as CFOs “panel bank” more aggressively than ever.
Multibanking is intensifying in linked trade and supply chain finance products also according to East research. Much of the impetus behind elevated customer switching intent is new digital banking platform functionality rapidly coming online, enhancing customer experience across liquidity management, regulatory reporting and onboarding processes.
Successful Bank RFP Selection Factors
% of Total
Source: East & Partners Global Insights Report – Selling Banks to the Corporate Treasurer (N: 755 Large Corporates)
*independently nominated post-coded responses
More FX Exposure = More Hedging
How are money managers and corporates responding to mounting currency risks, fresh geopolitical tensions and supply chain disruptions, uncertain GDP growth and heightened FX volatility?
CommBank’s latest FX Barometer shows money managers and corporates are stepping up currency risk management as foreign exposures grow, with both groups prioritising risk reduction over currency timing.
Most money managers expect to increase their exposure to foreign currency assets over the next quarter. Almost 90 percent of super funds, almost three-quarters of investment managers and just over half of insurers said they expect to increase their FX exposure. Money managers are most willing to hedge assets where FX volatility can obscure stable underlying returns. This explains why hedge ratios are highest for infrastructure and property, at around 80 per cent, and also high for fixed income and listed equities, at about two-thirds. By contrast, hedge fund and private equity investments remain lightly hedged.
Corporates have largely maintained their end-December 2026 forecast for AUD/USD at around 0.72, but now expect the Australian dollar to weaken over the first half of 2027 and end June 2027 near 0.68. The analysis found around 84 per cent of importers, 70 percent of exporters and 79 percent of businesses that both import and export currently hedge their FX exposures. Businesses that both import and export recorded the largest increase, lifting their average hedged proportion from 67 percent to 71 percent.
Analyst Meeting Insights in Review
The Q2 analyst meeting summary highlights key emerging thematics influencing strategic decision making including:
- Untangling FX & Cross Border Payments
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- Unique Corporate Perspective
- Gulf War Response
- Keep Calm and Carry On
- Getting Ahead of Rising FX Volatility
- Inaugural CommBank FX Barometer
Risk management is a critical competitive differentiator as geopolitical risks, AI-driven cyber threats and stablecoin payments evolutions reshape treasury, correspondent banking, and supply chain strategies for corporates worldwide.
Top Into the Voice of the Treasurer – East on Demand
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Monthly fieldwork enables clients to directly interrogate CFOs and treasurers on any question, in any market with rapid voice of the customer insights generated within two weeks.
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Get in touch to find out what we would ask if we were in your shoes – East analysts compile a quarterly list of questions inspired by our unique understanding of the market, driven by client conversations, corporate interviews and market movements.
