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II the familiar rules applied to banking this year. Bigger is better. Merge or die. West beats East. Curiously, though, the game seems to be changing. With the emergence of Citigroup and Internationale Nederlanden Groep in second and third place of Institutional Investor's annual ranking by core capital of the world's largest banks, global universal banks are at last coming of age.
These banks' enormous breadth is what makes them different from their competitors. They offer a range of financial services, from banking, investment banking and insurance to asset management. Studies by consulting firms have shown that customers who buy several products from an institution become more loyal to it.
Geographic diversity pays benefits, too. Citigroup's home financial market is the most mature in the world. A strong presence in Europe and Asia should give an institution the opportunity to grow far faster than one narrowly focused. By embracing all the world's markets, Citi and ING hope to gain access...