When consumer banking has turned digital, corporate banking is also transitioning to digital processes to cope up with the competitive pressure and other significant changes in the global market.
Corporate Banking refers to a range of financial services offered to corporate entities. Corporate banking solutions are usually offered by commercial banks which include all the commercial banking activities such as cash management, liquidity management, credit management, asset/loan management, payments and trade finance, investment management - mutual funds, equities, securities, risk management, deposit/liability management, and foreign exchange.
Corporate banking also provides many additional services to wholesale clients and multinational companies such as investment banking, advisory services, international transactions, and project finance etc.
Like the digital consumer banking provides single-source solutions to its customers, corporate banks are also looking for such solutions like undertaking multiple financial activities under one roof, third parties to promote financial services and other solutions.
The social distancing measures of the 2020 pandemic have forced the banks to accelerate digitization rapidly and a new option of digital payment has been added to increase their operational performances and services. But corporate banks need to focus on the below key elements to survive the threats that may pose tomorrow.
Need to adopt solutions based on innovative technology.
Need an inclusive digital transformation strategy of resources, activities, and capabilities to accelerate the business growth.
Need to create demand to increase customer onboarding efficiency like KYC and anti-money laundering, real-time interaction between banks and corporations and payments screening.
Planning to handle marginal pressures on cost simplification and efficiency.
Need to speed up their future-ready operations and outpace market demands.
Apart from this, a successful digital transformation program is built on four pillars including:
Exploring the power of data
Reinventing the customer journey
Redefining the model of operation
Creating a digitized organization
The Solutions to the Challenges
By incorporating automated solutions like digital fund transferring, banks will be able to detect fraud, financial crimes and will help to facilitate real-time transactions.
Implementation of biometrics can increase the security in payments for clients and will speed up the process.
With the help of API, corporate banks will get help to enhance cash centralization with improved cash monitoring and forecasting.
By automating supply chain finance processes, banks can reduce manual activities, improve invoice processes and reduce duplication.
Blockchain solutions can offer new opportunities including automated end-to-end processes, reduced transaction times.
The implementation of OCR will help to optimize the extraction of documents, regulation, auditability and will strengthen the existing regulatory regimes.
Banks have launched various digital initiatives but due to increasing competitiveness, they need to develop a more coherent digital strategy as digital transformation needs analysis, exploring, and probing in order to open the doors for new revenue streams and fresh possibilities.
