Since digitization began on a large scale, retail banking has been heavily impacted. Somehow, the impact on corporate was at a slower pace, but now gathering steam. Platforms, Blockchain and Artificial Intelligence (AI) have now begun to make a serious dent on the financing supply chain and international money transfers. A lot of this was effected by fleet-footed fintech startups, who were able to leverage this new ecosystem to their advantage. The BCG conducted their annual Corporate Banking Executive Survey 2017 to gauge the moods of bankers towards digitization. While a handsome majority envisages major digitization, few have a clear-cut corporate strategy to execute this. In this second wave of digitization, headed by corporate banks, a few main priorities need to be kept in mind. Focus must be on the customer journey. Data must be used for high-powered business analytics which will identify opportunities and help reduce costs. The operating model needs to be redefined towards setting up the digitally defined organization. A few recurring themes occur during this process, beginning with a focus on nonlending products. Lending margins too need be carefully managed. Proper investment needs to be made in the sales force. Asian market surprisingly has picked up much better than in Europe, while SMEs need greater attention from corporate banks.

Source:https://www.bcg.com/publications/2018/global-corporate-banking-2018-unlocking-success-through-digital.aspx?linkId=49472991

Uploaded Date:22 June 2018