Here we go again.
Here we go again.
Consider this. Your company just landed a big international deal and a multi-currency transaction of a substantial amount needs to be processed. After hours of filling out various forms, the banker states that the payment will take up to three weeks to process! Frustrating isn’t it, especially in this digital age where everything happens at lightning pace at the click of a button or rather ones “fingertips”?
However, this is a story of the past. With increasing expectations of high transaction process speeds and efficiency, new banking technology is being introduced in the payment and securities industry. In this digitized and automated world, corporate customers expect their bankers to be up to date with technology and provide speed, efficiency and security, in order to be able to transact seamlessly beyond boundaries.
The Evolving Landscape of the Payment Industry – Straight-Through Processing (STP)
With a dynamic change of pace in payments and foreign exchange, emerging multicurrency offshore systems, and with focus on liquidity in clearing systems and managing risk, corporates are compelled to be competitive in a complex environment. They demand tight control on their working capital and expect seamless, secure, transparent, automatic and electronic transaction processing.
As financial institutions find ways to provide that exclusive customer experience and at the same time reduce costs, automation of processes seems to be the perfect solution. Straight-through processing is the end-to-end automation of the payment process, and involves minimal manual intervention. STP solutions are widely being adopted by financial institutions in order to:
Why STP Solutions are the Way Forward
In order to capitalize on the rising business potential of e-collections and payables, corporate customers need to find a solution that is robust, scalable and has a future-proof platform that supports both transaction and file based processing with a high degree of STP.
Corporates need to find an advanced STP platform which has best-in-class security features, cost efficiency and payment performance capabilities. Transaction processing on a channel agnostic platform should be combined with flexibility to meet changing customer needs, regulatory reforms and operational arrangements.
An ideal platform is a high-speed banking platform that provides an advanced highway to run customer payments services, receivables management, cash management, liquidity management, trade finance and supply chain finance in an integrated set, through a single platform.
Get 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.
By 2015, digital banking is predicted to overtake branch banking as the preferred channel, according to the report, ‘The New Digital Tipping Point’ by PwC.
In this digitally frenzied environment, majority of the population is immersed in some device or the other, be it laptops, mobiles or tablets. It is important for banks to utilize innovative banking technology and understand the new age digital banking customer.
Digital Banking Customer – Segmentation by Generation
There are interesting characteristics of each generation from Baby Boomers (Hippies, Yuppies), Generation X (Lacthkey Kids), Generation Y (Millennial Generation), and Generation Z (Digital Natives) to the future of Generation Alpha (Google Kids).
According to the PwC research, ‘The New Digital Tipping Point’, Generation Y or the ‘Millennial Generation’ is 20% times more likely to consider using mobile or online banking than Baby Boomers. They are characteristically tech-savvy, brand loyal and consistently choose their primary bank when planning to buy new banking products.
With Generation Y being the segment that embraces technology and digital communication, banks need to focus on this group and build a primary customer relationship with them.
Give What Digital Banking Customers Want
Many banks have been following the trend of “show us your transaction history, and we will tell you who you are.” This approach of understanding customers no longer truly applies. While it is important to know customer behavior, it is more important to understand why they transact the way they do and how they wish to interact with banks.
To understand digital banking customers, you need to know what they want.
Digital banking innovation has evolved as technology companies are focusing on creating software that is more customer-centric. Currently, there are three areas of focus that banking companies need to consider when understanding the customer:
Digital banking technology and products should be built based on a strong understanding of the digital customer behavior and preferences. In order to create a customer-centric experience, banks need to adopt new and advanced banking technology.
Find out how you can capitalize on the digital banking wave in this year’s annual conference of SIBOS, where iGTB will be showcasing its global transaction banking products, from Corporate Banking Exchange, Customer On-boarding, Payments Services Hub to Liquidity Management and more.
Read more about the Top 3 Trends in Digital Banking
In this era of Globalization 3.0, the next generation of Customer 3.0 dominates the market and companies have to keep pace by using innovative technology designs such as Web 2.0 to thrive in this hyper-connected, competitive environment.
In the banking industry, the role of bankers and corporate treasurers has evolved from being mere transaction providers. To service new age customers who demand real time transacting and access to information, the focus of banks should be on building integrated systems and flexible architectures to provide real-time data and relevant reports.
Create a Customer-Centric, Technology-Oriented Roadmap
With the digital transformation happening in the banking industry, banks need to upgrade their systems to make it more flexible, accessible, transparent and customer-centric. They need to create a roadmap to integrate technology that will revolve around customer behavior and preferred services and products. Some of the milestones that banks should work towards in their transformative journey include:
1 – Real-Time Data Accessibility
Majority of corporate treasurers state that it is critical to have access to real time information in order to optimize their online cash management experience. With the environment becoming highly competitive and the prolific use of devices, there is a frantic need for customers and bankers to access real time information and data. Banks will have to build systems that provide access to this real time information and a well-strategized communication plan as well.
2 – Building Integrated Systems
As the role of banks and corporate treasurers evolve, integrated and consolidated transactional capabilities have to be improved. With corporate banking becoming more demanding, it will not be sufficient to build corporate portals that provide access to account information and payment transactions. Providing a 360 degree view of financial data and enabling detailed reporting using analytics will become necessary.
3 – Flexible Architectures
As emerging banking technologies are introduced, banks will need to improve their cash management systems based on flexible architectures. This will enable them to easily integrate systems efficiently and add new channels faster in order to offer new services and products especially in this age of social and local mobility in financial transactions.
4 – Use of Analytics
Analytics plays an important role in banking. However, it is fairly underutilized especially in the banking treasury services and corporate sector. Besides using behavioral tracking and risk management for fraud prevention, analytical methods such as trend analysis can also provide insightful direction for banks to better position their products and introduce higher level of services and value-adds.
5 – Relevant Reports
As stated by majority of the corporate treasurers, most of the static reports submitted by banks are not relevant and they prefer exporting data from the bank’s site to generate their own reports. It is high time that banks create dynamic and interactive reporting designs to enable multibank capabilities. The way forward is an advanced platform feature that will allow users to transfer funds and initiate payments within the report.
With these milestones in mind, banks and financial institutions need to increase technology investment and optimally utilize automated systems to provide customized products and services.
As the new generation of customers dominates an evolving market, banks need to differentiate themselves in this competitive market. They should be open to investing in emerging banking technologies which will be supported by an advanced transaction banking platform. Get to know about a high-speed banking platform which provides an advanced highway to run customer payments services, receivables management, cash management, liquidity management, trade finance and supply chain finance in an integrated set, through a single platform.
Find out 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.
It’s a bright sunny day, you’re enjoying a round of golf and you get pinged to approve a $4.3bn transaction. Think it’s possible? Yes, because there is an app for it.
Mobile corporate transaction banking is no longer an exception, it is a necessity. Banking technology has evolved with the changing landscape of customers, from corporate internet banking to corporate mobile banking.
As the corporate treasurers’ role transforms, what corporate banking customers want today is access to information and services, secure transacting and automation of processes to enable efficiency. Recognizing this need for change, banks are primarily focused on integrating and utilizing emerging technologies.
Mobility in Corporate Banking – Not Just Servicing the “Schedule-Stricken Senior Executive”
The benefits of mobility in corporate banking are not limited to authorization processes and engagement of senior executives or treasurers.
The Skeptical Adoption of Mobility by Corporate Banks
As compared to the widespread adoption of mobility in the retail banking space, corporate bankers are still skeptical about complete adoption. Their main concern- security.
Is confidential data secure?
Are user-authentication procedures concrete enough?
With Bring Your Own Device (BYOD) being the ‘in’ thing, what if a device with sensitive information is misplaced?
While these concerns may be valid, corporate bankers need to take a look at the customizable features of emerging banking technology products. With embedded, robust security systems, high-speed performance, user friendliness, device and channel agnostic characteristics, adoption and integration of innovative banking technology is inevitable.
Technology companies are building new mobile banking systems specifically for corporate customers. They are introducing relevant functions that can be used on the go. Functions such as multi-device operability, workflow and transaction approvals, fund transfers, secure bank messaging and alerting. Corporate banks need to extensively adopt mobile banking technology in order to provide mobility for banking executives on the move.
Get to know how to utilize a high-speed banking platform to provide an advanced highway to run customer payments services, receivables management, cash management, liquidity management, trade finance and supply chain finance in an integrated set, through a single platform. Find out more in this year’s annual conference of Sibos, where iGTB will be showcasing its core comprehensive products.
Customers’ expectations have undergone a 360 change. They no longer expect real-time service and information. They expect companies to predict what they need. Predictive analytics technology has become a game changer in utilizing big data and business intelligence to enable companies make better informed decisions.
Ride the new wave of Predictive Technology Using Big Data Analytics
Regulations are ever changing
Volumes are ever expanding
Competition is ever growing
Customer demands are getting more complex
Financial crimes are getting more sophisticated
In this M2M (machine-to-machine) market, real-time service, action and decision making is required to provide exclusive service and products. In the business banking space, challenges such as increasing transaction costs, higher liquidity requirements and managing decreasing margins make it inevitable for enterprises to adopt predictive analytics.
More Insight, Less Hindsight – Personalize with Predictive Analytics
To keep up with the new man-and-machine interaction, adoption of innovative business approaches is necessary. The core essence of predictive analytics is focused more on insight rather than on hindsight.
With new technologies, devices and channels used by customers, transaction patterns are not only becoming more complex, but constantly changing over time. Predictive analytics uses business intelligence and big data analytics to provide companies with real-time, actionable intelligence to personalize their service and products. Here are 3 ways you could use predictive analytics to become customer centric in transaction banking:
Capitalize on a high-speed transaction banking platform
Innovative and new transaction banking platforms need to be adopted in order to respond to the changing landscape of customer demands, interaction and transaction patterns, and evolving expectations. iGTB’s Global Transaction Banking platform enables corporate customers to have all their transaction needs seamlessly integrated through a consolidated next generation portal for the corporate user, leveraging the Customer Business Exchange.
Capitalize on predictive analytics and use an advanced highway to run customer payments services, receivables management, cash management, liquidity management, trade finance and supply chain finance in an integrated set, through a single, high-speed banking platform. Find out 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.
The digital era has changed the entire landscape of the banking industry, and has provided new opportunities to improve customer experience. Customers are increasingly using smartphones, tablets and PCs to access financial information and perform transactions.
With evolving technology and customer landscapes, it is important for businesses to keep up with the trends in digital banking:
Banking strategies have changed over time to suit the evolving needs of various customers; with no room for ‘one size fits all’. Planning is integral to counterbalance device and platform differences.
In this digital world, keep up with what’s hot and happening. Expect the extraordinary and experience “Digital Banking 360” showcased by iGTB for the tenth consecutive year at the Sibos annual conference.