This past week, the European banking industry continued making everyone nervous and now comes the news that Bank of America is cutting 30,000 jobs. In recent weeks, there have been a number of banks shedding non-banking operations as they line up equity to meet increased regulatory obligations. Obviously, with the banks holding the money and being at the center of financial transaction, their footprint is even larger. In addition, for many products and sellers, the financial sector is one of the biggest markets — so, in any number of ways, when they shudder, all the world feels it.
When we look at the largest corporations in the world — The Global 5000 — banking is at the top of the list. As part of the financial Services sector which accounts for 15% of the Global 5000 companies, it is the largest segment of all. There are 190 banking companies in the Global 5000 database.
These banks employ 8.5 million companies and have revenue in excess of $1.7 trillion (with a T) annually – outpaced only by the retailers and wholesaler segment. And the story is the same around the globe. Looking at financial services companies in regions of the world we see they represent the following % of Global 5000:
- 17% in Asia Pac
- 17% in Europe
- 19% in Middle East
- 10% in North America
- 23 % in South America