The creation of new technologies is accelerating at a rate never before seen in the era in which we live. Artificial Intelligence and machine learning were once used as add-ons, but now they are widely used in many fields, including banking.
Due to the financial crisis in 2008, banks had to put a lot of money into digitising their services. This made it easier for customers to get their money and gave them more ways to use it. As a result, investments in technological solutions have increased since that time. As a result, they currently rank highly among banks throughout the world.
Corporate banking has been slowly moving away from desks, phone calls, and filing cabinets for many years in favour of omnichannel platforms that work well together. Finally, corporate banking will probably entirely transition to digital media and interfaces.
Recent occurrences motivating change
The COVID-19 pandemic showed that all banking platforms needed to be digitalized and streamlined, which added fuel to the fire. Corporate clients now need flexible and integrated banking services. In today’s economy, cutting-edge software solutions are like gold dust, and banks scramble to meet demand.
The rise of digitalization in banks was sped up a lot by hybrid working structures, which were another long-lasting effect of the COVID-19 pandemic work. Banks are even more determined to expand their tech stacks in the wake of the epidemic to keep up with business demand.
This year, NTT DATA did a global study called Corporate Banking Outlook 2022. It looked at the most recent changes in corporate banking. The use of technology in banking solutions was the report’s most frequent theme. We found that platforms, onboarding procedures, know-your-customer (KYC) programmes, and anti-money laundering (AML) measures are all being changed by technology.
That raises the question of what the future of corporate banking holds.
Change to satisfy the corporate need
Evolution in banking frequently results from overcoming obstacles. By addressing the most urgent issues that banks are currently facing, we may develop foresight and start to sketch out the future.
Matching business demand for technological solutions is a significant source of pain for banks. Based on our research, 85% of banks try to make their portals easier to use, and 57% of these institutions do this to improve customer satisfaction. This result indicates the move away from client-to-client banking and toward using portals.
It also shows that corporate clients are moving away from traditional communication channels and toward all-in-one interfaces. Banks are already making investments to realise this ambition, and I believe they will increase these investments in the future.
There are numerous instances where banks are unable to satisfy corporate demand. One area where there was a big gap between what businesses wanted and what banks were willing to invest in was the need for more or better omnichannel solutions. So, I think there will be a lot of money put into omnichannel services in the coming years, and in ten years, they will be the standard for all interactions with clients.
Another unmet customer need for banks is omnichannel corporate financing solutions. This paper has many examples of these kinds of demands, such as in the construction (70%) and healthcare (55%) industries. To meet the needs of their business clients, banks must make significant improvements in this area.
It’s interesting to note that many corporate banks are switching to open APIs to make it easier to separate the essential services that drive their omnichannel solutions. The best way to enhance the client experience will ultimately be to streamline and homogenise these solutions as feasible.
With streamlined, multichannel systems that put the client at their core, the future of corporate banking begins to take shape in light of this.
A future focused on the client
Corporate customers no longer prefer to speak with banks over the phone. They desire the capacity for quick decision-making. Self-service is expected to replace customer assistance.
Their clientele is the leading corporate banks. Future banks will need to be creative and combine cutting-edge fintech with existing banks’ history and global reach. I anticipate several collaborations between FinTechs and conventional banks over the next ten years. In the last two years, Deutsche Bank and Traxpay have made a lot of money together, which shows that their partnership is working.
The corporate banks with the best chances of success are those who move quickly and put their customers at the centre of their business. Having control over data is equally essential. Customers want better connectivity so they can browse data sets without being interrupted. Data must be securely transferred between services and be enhanced by Artificial Intelligence.