Home Innovation Risk Analytics Trade Tensions Push Companies ...

Trade Tensions Push Companies to Rethink Banking Relationships with Risk Analytics

Risk Analytics

Business Honor
06 August, 2025

Companies shift to regional banks, using risk analytics to manage geopolitical and market risks.

Wall Street banks are losing ground in Europe and Asia as growing trade tensions and tariff uncertainty lead international companies to rethink their banking relationships. As U.S. President Donald Trump's increasingly tough stance on trade, many European and Asian corporations have started looking to regional banks for financial advice and services. This shift is a great example of how risk analytics is shaping major decisions across global finance. Firms are using risk data to reduce exposure to geopolitical instability, foreign exchange fluctuations, and supply chain disruptions. By diversifying their banking counterparts, particularly away from U.S.-based banks, they seek to better contain strategic and market risks.

According to Bloomberg, nearly 50% of euro bond deals from non-U.S. companies this year did not involve the top five Wall Street banks, up from 45% last year. For sterling bonds, U.S. banks have been excluded from 64% of deals, compared to 47% last year. Asian banks are also rushing ahead. Numerous plans to issue fresh banking requests for proposals (RFPs) in the next 12 months, with American banks already losing trade finance market share in China in 2017, it stood at 12%, while now it stands only at 7%.

Deutsche Bank, UBS, and Standard Chartered executives all affirm they are capturing customers who prefer local knowledge amid increasing global uncertainty. Increasing demand reflects the way companies are applying risk analytics tools to assess banks according to resilience, compliance, and geopolitical risk. As the world's economy evolves, risk analytics is no longer a choice—it's a necessity. From counterparty risk to FX volatility, companies are taking smarter, data-driven actions to safeguard their future.