Unlike retail bank customers who rely on a single firm to handle most financial needs, corporate clients maintain relationships with several banks. The result is intense competition as commercial firms vie for wallet share. As the expectations of commercial banking customers grow, technology proliferates, and agile newcomers (FinTechs and other challenger banks) threaten to grab the most profitable aspects of commercial banking, it is a critical time for banks to invest in digital transformation and to fundamentally improve the way they serve corporate clients. The ability to retain and grow business and increase profitability is on the line.
Many commercial banks have begun to integrate their systems with that of their clients to extract deep customer insights and leverage AI and machine learning capabilities to streamline processes. Inefficiencies within important value chain areas such as payments and trade finance have been prioritized for transformation, and emerging technologies such as Distributed Ledger Technology or Internet of Things are being leveraged.
The open banking API-led economy, collaboration between banks and FinTechs, and data aggregation are all fostering improvements in services. However third-party data sharing and increased digitalization have also put a focus on data security and data-driven regulatory compliance.
To remain competitive commercial banks must stay alert to industry developments. This report aims to unpack and analyze 2019’s leading trends for commercial banks.
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