Over the past decade, a significant power shift has reshaped global banking – moving strength from West to East. Asia once looked to Western institutions as the benchmark for product and service innovation. Today, the numbers tell a different story. A recent research publication from McKinsey’s Future of Asia captures just how dramatically the balance has changed.
More than 40 of the world’s 100 largest banks by assets are now Asian. Asian financial institutions also hold approximately half of global banking market capitalisation. For a full decade, the Asian banking sector has ranked as the largest regional market worldwide. In 2018 alone, it generated profits exceeding USD 700 billion pre-tax – equivalent to 37% of total global banking profit.
Asian banks have also accelerated their delivery of advanced technology solutions for clients. This momentum reflects a dynamic and fast-moving fintech trend across the continent. From China to Southeast Asia, fintech providers have established themselves as the default payment solution in their respective markets. Alipay, originating in China, now operates as a widely adopted payments model across both B2B and B2C segments – and continues to expand rapidly throughout Asia.
In trade finance, the shift is equally pronounced. Western banks such as BNP Paribas, Société Générale, and ABN Amro held market leadership until recently. Now, many are retreating and downsizing. Commodity finance has seen particularly sharp contraction – recent fraud cases prompted banks to close desks across Asia and globally.
Demand for trade funding and financing, however, shows no sign of slowing. The gap left by European banks’ withdrawal will likely attract Asian institutions moving in to fill it. This dynamic points toward a further eastward shift in the global centre of banking power.
For more data and emerging trends, the full findings appear in McKinsey’s Future of Asia report.
Mitigram is the leading digital platform for global trade finance execution. In 2024 alone, the platform facilitated over $41 billion in transactions across 120+ markets – empowering corporations, commodity traders, and financial institutions to transact with confidence. Mitigram supports risk coverage on more than 1,000 issuing banks and has enabled over 10,000 completed trade flows – bringing speed, control, and transparency to an industry long held back by fragmentation and paper.
To learn how these solutions can benefit your organisation, contact the Mitigram team here.
