Centralization of Activities in Multinational Banks, with an Application to a European Banking Group

  •  Leonor S. Uva    
  •  Margarida Catalão-Lopes    


Most banks operate at a multinational level. Since the diversity of geographies implies repeated operations, multinational banks are starting to centralize some functions into shared-services centres. This paper proposes a classification of the core banking areas according to their potential of centralization. As an illustration, we provide an application to a European multinational bank with important international operations. The focus is on the Card Operations Department, which is found to have high centralization potential. The results of this study show that main opportunities of centralization occur for physical card production, stock management and quality control, and fraud prevention.


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