Emerging Trends in Commercial Banking-Part1

Emerging trends-Impact on banks & what they are doing

 Currently, the main focus across banks is on innovative use of technology and in the below three streams:

1. Products, services and markets – Develop new products and services, target new markets and audiences.

Examples-1.Whitelabelling & In sourcing by the big banks

2. Supplier Finance Programs customisation for A/R, A/P, Factoring, Conditional Payments etc

3. Syndication/risk participation for financing/Guarantees. 

2.Business and enterprise models – As the demand for banking services  continue to surge banks are focusing on greater digital capabilities and information flow by making a paradigm shift and restructuring
Examples-Convergence programs to merge the traditional boundary between cash management/payments & trade services.

3.Operations – Improve effectiveness and efficiency of core functional areas through consolidation of operations by eliminating duplications: redundancies 

A growing number of forces are challenging corporate banks and the below are the 4 major areas on which banks have planned their roadmap

1. Industry/ Market – 3 ‘C’s
 – Customer Expectations, Competition and Cost Reduction

2.Technology – 3 ‘S’ 
Standardization, Simplification and Security

3.Product Offering Landscape
 – Convergence and  Collaboration

4.Legal
Increasing burden of compliance

To Be Contd in Part2