Customers today are more sophisticated, tech-savvy and complex than ever before. Companies need to create highly innovative and superior IT strategies and business models. To implement these strategies, they require the banking industry to provide financial mobility, flexibility, accessibility, control and visibility.
Moreover as economic pressures continue to affect the banking industry, banks need to gear up for continuous changes in the expanding roles of banks, corporate treasurers and regulatory landscape. In the banking fraternity, global transaction banking is considered as one of the more stable and profit-making business sections. It is important that banks stay tuned to the latest trends to stay a step ahead in the industry. Some of the top trends in the global transaction banking industry include:
- The rising risk of digital currency adoption: There is increasing adoption of digital currency like Bitcoin owing to the reducing confidence in banking systems. As peer-to-peer technologies are introduced and open source P2P Money is being used, widespread adoption in corporate banking is highly unlikely. For banks that have a footprint in many markets, it may be necessary in the future to support emerging digital technologies such as digital currencies, to stay a step ahead in global banking.
- The convergence of corporate-centric, multi-products and services: Driven by the expanding role of corporate treasurers, there is an increasing expectation from banks to provide integrated solutions through a single point of contact. As the responsibilities of corporate treasurers have extended to a wider range of activities, they expect their banks to support them by providing cutting edge, on-the-go service and products.
- The increasing demand for international banking services in emerging markets: As developing countries emerge as key players, banks need to extend their services to meet the cash management needs of their clients. As corporate clients look at increasing their global footprint and FIs seek solutions to support expansion, banks need to upgrade their capabilities. They need to adopt emerging banking technology to provide clients with payments and liquidity solutions, internationally. With the expansion of operations and transactions, what is expected from banks is the need for centralized functionality with easy accessibility, flexibility, control and visibility.
- Compliance with the ever changing regulatory landscape:The banking industry today is not only pressurized by a challenging economic environment, they also face the never-ending issue of keeping up with changing regulations. As FIs and corporate clients expand into emerging markets and look for worldwide transaction banking solutions, complying with different regulatory requirements is complicated. In order to comply with many regulations, which are different across geographies, corporate investors are interested in sourcing solutions from global banks and banking technology providers.
- The shift of expectations from core banking services to value added services: Cash management is a critical component for companies, and banks that are involved in cash management maintain a long standing relationship with their clients. However, unlike traditional banking, corporate clients today expect their banks to be more than transaction service providers. They expect additional value added services such as accessibility, flexibility and security.
The way ahead in global transaction banking, is for banks to move beyond their core service and product offerings. As corporate clients shift focus of their IT budget from basic compliance of regulations to creating a competitive edge, banks need to adopt emerging banking technologies in order to provide advanced services and products.
With focus on gaining a single platform to support high-speed banking activities, an ideal platform is required to provide an advanced highway to run customer payments services, receivables management, cash management, liquidity management, trade finance and supply chain finance thorough an integrated system.
Know more in this year’s annual conference of Sibos, where iGTB will be showcasing its core comprehensive products, from Corporate Banking Exchange, Customer Onboarding, Payments Services Hub to Liquidity Management.
Enable corporate clients to be…
Financially mobile, flexible and accessible…
With a high-speed banking platform.
IGTB 