(7 July 2017 – Asia) The latest round of East & Partners Asia’s ‘Asia Transaction Banking Markets Program’ has found that over the last decade, Bank of China (BOC) has increased its market share of primary relationships in transaction banking (TB) by 60 percent.
BOC’s 60 percent growth rate between 1H 2007 to 1H 2017 is second only to Deutsche, which surpassed by just one percent over the same period. The results for the Chinese and German banks should signal alarms for the region’s major providers, who have struggled to significantly expand their transaction banking businesses in the last decade.
The top four banks in Asia, currently comprising of Standard Chartered (leading with 22.5 percent primary market share), HSBC, Citigroup and Singapore’s DBS own a cumulative 61.6 percent of Asia’s institutional transaction banking market, however have grown by just one percent in that timeframe.
Reinforcing their market share growth, Bank of China’s growth is also clearly reflected in the increase of their transaction banking share of mind. The bank has experience a six-fold brand recall (617%) over the last decade to nearly 13 percent – ranking them third. In addition, BOC has also clinched third place share of mind for Cash Management and Short Term Debt.
Capturing wallet share continues to prove problematic for providers in Asia. Average wallet share continues to on a downward trend, dipping 0.7 percent to 47.4% over the last six months. Only HSBC, Bank of America Merrill Lynch, Citigroup and CIMB have bucked that trend in this round.
Standard Chartered currently has the highest share of customer wallet, capturing more than two thirds of each primary customer, followed by HSBC and Citigroup.
Considering Bank of China’s current mind share and market share growth rates, East & Partners Asia forecasts that it will break into double digit market share, surpassing 10 percent of primary transaction banking relationships across Asia by 2022.