The traditional “global universal bank” architecture has shifted dramatically over the last ten years, making way for a regional approach that McKinsey & Company terms “continental” or transnational banking. This framework prioritizes domestic markets and adjacent geographic territories over far-reaching global expansion.
According to a preview of McKinsey’s Global Banking Annual Review 2026 report, 16 of the top 20 banks globally by market capitalization have localized their operational footprints to their home nations or surrounding regions. This marks a sharp contrast to 2005, when half of those top-tier institutions operated under a global universal banking strategy. Prominent examples of this strategic shift include HSBC downscaling its footprint across several international zones, and Citigroup divesting from its retail and consumer banking arms in 13 markets across Europe, Asia, Africa, and the Middle East. McKinsey noted that this retreat from global retail operations to double down on core territories has become an industry-wide trend.
Conversely, a few banks are leveraging this continental model to scale up regionally. For instance, Southeast Asia’s largest lender by assets, DBS, is expanding out of Singapore to construct a dedicated pan-Asian network, while BBVA is building out a multi-country infrastructure anchored in Spain, Mexico, Turkey, and South America. Continental financial institutions are targeting cross-border regional scale by relying heavily on digital banking platforms and updated operating strategies.
The report highlights wholesale banking as the solitary business vertical that continues to maintain a truly global footprint, though it represents just about 11% of total banking industry revenues. Ultimately, McKinsey concludes that the modern banking landscape has pivoted decisively toward tighter geographic concentration.
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