Part II

Corporate Banking Success Factors - Unravelled

As big corporations drive towards digital transformation, constantly pushing the boundaries with cutting-edge technology to both optimise and streamline their business processes, the sheen on the current corporate banking model may have worn off slightly. To achieve success and drive excellence, corporate banks need to reinvent their value proposition, drawing on their expertise, data, and long history of customer relationships.

Business Banking

Last week, we discussed the challenges in the industry during the ‘Fourth Industrial Revolution’ - where the archetypal business customer has come to expect more than what the traditional service offering can provide. Consequently, this article will explore the ways in which banks and financial institutions can apply some polish to bring back the lustre to the industry.

We have identified five key areas, which are vital to implement in order to remain competitive in the current market, and to position yourself for the future market:
  1. Omni-channel capability

    In this fast-paced digital era, the need for corporates to operate from anywhere during all hours, has become essential. Likewise, business customers will expect to not only have access to their banking services in this manner, but also to have complete device-independence, whether it be a computer, mobile, or tablet - with the freedom to use their preferred internet browser.

    Corporate banks should provide transactional banking services to businesses with the ability to initiate, process, and commit across all digital channels - enabling processing of critical everyday transactions like salaries, mandate orders, loans, and others - with continuous, consistent, and real-time transaction monitoring to enable a compelling digital experience.

  2. Bespoke solutions addressed to unique business needs

    As discussed in our previous blog, bespoke corporate-to-bank connectivity solutions are vital to enable banks to deliver differentiated products and services across the corporate banking value chain. These services should not only address the requirements of a specific corporate client, but also focus on the industry-specific vertical challenges by addressing the needs of the micro financers, public sector, and telecommunications industries, amongst other.

    Thinking beyond the boundaries of the banking industry, and adopting clever methods to increase customer satisfaction and reduce costs using cutting-edge technologies - such as robotics and AI, will also enable corporate banks to reduce the challenges inherited from legacy IT systems.

  3. Speed, self-service, and better visibility

    Simplicity is key to reinventing the relationship between corporates and banks. Corporate clients need the ability to control their businesses, not just view accounts and finances.

    Digital self-service for the origination of everyday corporate banking services such as account opening and updating, debit order capturing, loan applications, as well as bulk payments processing, are some examples which will empower and enrich customer engagement.

  4. Power of data and advanced analytics

    Gaining access to huge amounts of readily available corporate data is critical to drive excellence in the industry. Corporate banking solutions are the key to disrupting the corporate banking ecosystem by providing innovative ways for banks to generate leads, unleash new markets, increase client retention, and drive revenue upliftment.

    Banks should use the corporate-to-bank connectivity platform to identify key transactional banking products and restructure pricing. This enables corporate clients to utilise saved-up revenue for other value-added services provided by the bank. Predictive analytics on transactional banking services enable banks to not only reduce income leakages, but also to provide corporate customers with solutions to analyse their behaviour, to provide additional products and services that will enable growth.

  5. Straight-Through-Processing (STP)

    With ever-increasing complexity, as new investments are required to meet new obligations, disparate systems are undermining the ability of corporate banks to achieve excellence. Straight-Through-Processing helps drive the simplification of the end-to-end processes, therby allowing banks to reduce costs, whilst increasing speed and maximising the return of these investments.

In conclusion, there are some exciting opportunities ahead for those who decide to rise to the occasion and endure these challenges to retain market share, broaden revenue pools, and avoid disintermediation. Don’t miss our next blog, where we will be discussing a simple and affordable way in which you can introduce these features and services.

Redefine your Corporate Banking Experience »

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