Global universal banks give way to 'continental' model: McKinsey

Wholesale banking is the one business line that remains consistently global.

The “global universal bank” model has evolved over the past decade to one that focuses on their home markets and nearby continents—a new pattern called “continental” or transnational banking by McKinsey & Company.

Sixteen (16) of the world’s top 20 banks by market capitalisation now focus on their home country or those nearby, the management consulting firm said in its sneak peek of its Global Banking Annual Review 2026 report. In 2005, half of them were global universal banks.

HSBC, for example, reduced its presence in several markets, whilst Citi sold its consumer business in 13 markets in Asia, Europe, the Middle East, and Africa.

Major institutions have retreated from global retail footprints to refocus on priority regions, McKinsey said, and other banks are following suit.

DBS, Southeast Asia’s biggest bank by asset-size, has expanded from its Singapore presence with the aim of establishing a pan-Asian network, it said. BBVA is evolving into a multicountry group across Spain, Mexico, South America, and Turkey.

Wholesale banking is the one business line that remains consistently global, McKinsey said, although it accounts for only about 11% of industry revenues.

These continental banks aim to build scale across regions through digital platforms and new playbooks.

“In short, banks are focusing their efforts geographically,” McKinsey & Co. wrote.