Banks have been implementing steady de-risking strategies for decades, but the rate has intensified in recent years. Banking Circle research investigates how bank de-risking is affecting smaller financial institutions (FIs) across Europe and compounding financial exclusion for many customers.

Published in a white paper, ‘Big Bank De-Risking: The Invisible Threat to Financial Inclusion’, the research reveals that FIs face increasing costs from their growing network of correspondent banking partners. As the white paper explains, no ‘real’ alternative is possible, so the industry must instead focus on a new tech-based approach to correspondent banking, that improves processes and lowers costs.