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
Increasing burden of compliance
To Be Contd in Part2