Although, the banking sector has conventionally been an industry that thrives on brick-and-mortar infrastructure and in-person loyalty, financial services have come a long way in their digital journey. However, corporate banking is still trailing a few steps behind retail banking due to a lack of flexibility driven by a deep-rooted cultural inertia, complex processes, and legacy infrastructure lock-in.
Like with every other lack of improvisation and innovation, nimble novices have swept in to act, bringing digital disruption to corporate banking with a rational retribution. This surge in promising digital alternatives is driving the corporate clients to expect top notch customer experience, like in every other sphere of life. Boston Consulting Group’s recent survey of corporate-banking customers worldwide emphasizes that the industry is on the cusp of “a far-reaching digital shakeout”. Corporate clients are not only awaiting digital platforms, but the majority are also prepared to make a switch – and even pay a premium – to work with institutions capable of delivering the type of integrated, omnichannel service that is now the norm.
With corporate clients undergoing digital transformations themselves, they are looking for self-service, efficiency, convenience, and security. To bridge any gaps in the end-to-end process, corporate-bank management must strategically undertake front-to-back digital transformations and build their capabilities around delivering seamless online banking that is complemented with real-time data-driven decision-making and advisory. This is where digital tools like dashboards that track metrics and other variables will come in to offer personalized and proactive services to their clients.
Beyond the competitive landscape, the following high-level facets are also equally contributing to the digital transformation in the corporate banking space:
AI can perhaps single-handedly power the move to digital banking with its ability to provide deep and meaningful insights into data at unimaginable speeds and precision. This actionable data drives significant pivots and allow organizations to adapt as the market’s winds blow, paving the way to an agile business.
AI and Cloud are buzzwords that pretty much rule the tech world. In sync with AI, cloud-based technology allows companies to leverage services as needed. It brings along an exponential response to demand escalation, all without human intervention- thus, creating equal opportunity for all organizational sizes.
While it does not completely relieve you from regulatory oversight, the nimble nature of digital banking has attracted a plethora of firms that need a financial counterpart.
Digital banking from a corporate point of view, is creating a leeway for small and medium enterprises as well, owing to the competitive advantage that digital environments bring along in terms of offering targeted and niche services and scaling services them.
This digital imperative has further created tried, tested, and endorsed trends that are working as ideal baby steps for many corporate banks trying to break off from the shackles. Here are a few focus areas that corporate banks can invest in to make a stronger entry in the journey to digitization.
- Reimagining customer journeys : – In a time and space that relies on single clicks and instant approvals, clients are less tolerant towards long and nontransparent processes. And to adapt to this expectation, banks kickstart the change right from streamlining and compressing onboarding and lending processes. While this not only sets the right foundation for new relationships, it also creates a client centric culture that focuses both on client satisfaction and process optimization.
- Leveraging the power of data :- Unlocking data and diving into its insights is a key for enhancement in digital journeys. Using the right cutting-edge analytics and intelligence tools (think RPA, big data, AI and blockchain) help targeting the right potential clients, focusing on hyper personalized advisory and solutions and finally acing the retention efforts based on the analyses.
- Redefining Operational models :- Tackling organizational and cultural inertia in an otherwise traditional culture can be challenging. And combating this begins with including digitization as a strategic priority and ensuring an outlook that favors risks, funding, talent and agility. While the newcomers in corporate banking are a potential threat, it is a good time to pave the path for collaborations to accelerate innovation, leverage talent and share focused funding.
All in all, while corporate clients do account for big chunks of revenue, providing digital omni-channel accessibility won’t cut it in any way. Embracing innovative technology solutions not only optimizes cost and processes on the organizational front but also caters to evolving clientele and their needs making it a strategic Win-Win. In a nutshell, acting right away will curb marginalization and give corporate banks the flexibility and edge to retain and add value to their long-celebrated market share.
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