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Operation transformation in technology for multi-banked corporates

We are witnessing a period of rapid technological transformation and are seeing new industry collaboration models for banks and corporates emerge. What are the key trends and how can we reinforce collaboration between banks and corporates - in which areas is particular attention needed? With data driven treasury becoming the new norm does it means that banks have become IT companies? With growing demand for agile financing from digitally driven customers, new regulation and pioneering technology in the corporate space, is there a need for banks to put a priority on innovation over legacy?

One of the most significant trends in corporate banking operations is the move towards instant, self-service digital offerings. Multi-banked clients want to access information, make changes to accounts and initiate transactions ‘right now’ and on any device. We have moved from anytime, anywhere banking to anytime, anywhere, right now banking. This is a new frontier and many innovations are now focused on instant service. This trend requires banks to invest significantly in their IT systems to improve speed and efficiency and give corporate clients a “bank in their pocket”.

For corporate treasurers, having a bank in their pocket will enable them to conduct their banking how and when they want – with minimal involvement of bank staff – a capability increasingly demanded by retail and wholesale banking customers. The technology now exists to enable a shift towards ‘on the road’ type products; corporate treasurers no longer must contact a bank staff member to request a change or make a query. By making such products instant, efficiencies will be vastly improved as treasurers no longer have to spend time tracking down information on transactions, for example.

While corporate treasurers are becoming increasingly data-driven, there are significant questions that remain unanswered. Financial institutions haven’t yet fully exploited data – there are significant amounts of data they have not used and in many cases banks do not know how to use. How banks use the extensive information they have about their corporate clients to further help them is still uncertain but room for improvement exists. A major advantage banks have over competitors is the trusted relationship they have with corporate clients. Exploiting data, for example by pushing information out to particular customer groups, may risk annoying the client and thus damaging the trust basis of the relationship. Most banks are investigating the more extensive use of data, but are very wary of the impact it might have on clients. A big question for banks is how they can use the data they have about customers to improve their relationship with those customers.

Banks are focused on innovations to deliver instant capabilities to corporate treasurers. Instant is the new agenda for treasuries and it will greatly improve efficiencies

Benoit Desserre
Head of Global Transaction Banking

Successful collaboration between banks and corporates to develop new products and services is based on a bank’s knowledge of its customers. Unlike fintechs, banks have a large customer base and a role as trusted adviser to corporates. Banks are in contact with corporate customers every day, and this is a big advantage when it comes to developing products and services. Fintechs have the technology and efficiency tools, but lack the deep knowledge of corporate treasuries and the trusted relationship. New technology – no matter how good it is – will not flourish if there is no customer base.

Unlike fintechs, banks have a large customer base and a role as trusted adviser to corporates.

Aurélien Viry
Global Head of Payments & cash Management

Success will come to all parties in the corporate banking environment – banks, corporate treasuries and fintechs – via collaboration. Some fintechs will no doubt succeed on a stand alone but they will be very limited in number. Collaboration between banks and fintechs will see more successes and will help treasuries to cope more rapidly with new regulations and exploit new technologies. This is a role banks have always fulfilled, but the changes the market is witnessing are tremendously accelerating.

Aurélien Viry Global Head of Payments and Cash Management Societe Generale