Rising world trade flows, increased gross domestic product (GDP), a growing middle class and new technologies are expected to help banks based in emerging markets expand into developed markets in the coming year.
Until recently the emerging markets banking sector story was about the growth of the emerging markets and how institutions from the developed world are looking to benefit from these fast growing markets. "But the untold story is the reverse; banks based in emerging markets have been gaining strength and with that strength, are now looking to expand beyond borders," said the study.
Emerging markets banks in general have the experience of operating in volatile markets, combined with their knowledge of how to reach unbanked and under banked population, are better positioned to achieve a successful expansion to developed and other emerging markets.
While many are facing limited expansion opportunities in their home markets diversifying away from the relatively volatile markets is one of the key reasons for many banks to look abroad for expansion.
"The banking systems in the
"This relative domestic expansion and growing means allow these banks to invest in growth opportunities. Moreover, many of the large banks are considering to leverage their strengths and relative efficiency in their operating model by looking to opportunities of expansion into new markets," said
According to Deloitte, over the last several decades, emerging markets-based banks have followed different paths in expanding their reach around the world. Many Banks have looked to the
"Even though Emerging markets-based banks still have domestic expansion opportunities and growing market needs for innovative banking products and services, they are also looking for expansion beyond national borders as their customers expand into new markets and their citizens immigrate to new countries," added
Today, emerging markets and developed markets each account for half of the world's GDP. However, in the future, the report projects emerging markets to account for more of the global GDP with developed markets accounting for less. Additionally, according to the Fortune Global 500 list the number of North American and European financial services firms on their list has declined, while the number of those based in
Most Popular Stories
- Businesses, Investors Pressing for Green Policy
- Who's Next? More Nude Celeb Pics Hacked, Leaked
- Tips for Hiding, Securing Data on Smartphones
- E-scrap Recyclers Find Profits in Upgrades
- Iran Says Syria Strikes Illegal
- Cristela Gets a Big Thumbs Up
- ISIS Calls for Jihad Against 'Filthy French'
- 'The Voice' Sounds Different This Season
- Congress Casts a Coy Vote on ISIS War
- Lower Used-Car Prices Roil the Auto Industry