The uncertain economic environment – shrinking of the GDP across the globe and the forecast that economies would take 7 to 10 years to bounce back to pre-COVID levels, has cast a spell of rough ride for corporate banks in the near future. It is further complicated by the increasing institutional demand for seamless integration and real-time results across the breadth of their relationships. The silver lining is favorable developments in the enabling environment, especially around payments and the open data. Banking leaders are increasing their efforts towards establishing their foot print in this challenging landscape by focusing on the following.
The SWIFT GPI finally provides a platform to bring together all the actors involved in the domestic and international trade and payment system. By building an integration layer on top, it provides an opportunity to bring cash management and liquidity information for the customers. This has been a long pending ask, especially for customers with high international exposure.
Banks have to continually build the connectivity and tools to conduct necessary analyses for taking meaningful decisions. Using the derived data and integrating those to the entire bank’s systems – from customer facing to transaction systems, will make this initiative successful.
In a digitally enabled environment and among the digital first institutions, it becomes important that the data search, analysis, and intelligence are made in a manner that is readily exchangeable and usable in the discussions to surface the entire application-to-lending cycles.
It is vital for the banks to be deeply entrenched and integrated with the various branches of the corporate systems. Starting from hire-to-retire, people’s process, order to cash, and request to store procurement process to the capital investment programs, all relevant parts of the mentioned functions need to be seamlessly integrated with the bank. This ensures that Straight Through Processing (STP) is maximised.
It is essential that the banks straddle both the digital savvy and non-savvy institutions in the near term and also include human touch where necessary. This ensures that transactions do not wait and are progressed to conclusion at the optimal time scale. This means that the customer access systems switch between virtual and human touch based on the situation. For this to happen, integration with capable AI systems is the need of the hour.
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