Changing landscape of trust was set against a backdrop of global economic uncertainty.
With the prospect of a sharp recovery in economic activities in 2021, corporate banking in India is expected to witness a significant evolution in the path to recovery as banks redesign their corporate customer experience (CX) on a digitalised scale by leveraging technology and innovations.
In the recently released IDC FutureScape: Corporate Banking Worldwide 2021 Predictions — India Implications that contextualizes Corporate Banking predictions for 2021.Compared with developed economies, India’s corporate banking sector is still in its nascent stage in terms of product and service offerings. However, this is being tested on twin counts of increasing digitalisation of the Indian economy and globalization of Indian companies, which are bringing in rapid sophistication in operations and engagement.
“In India, corporate banking has remained undelivered during the last couple of years, but going forward, the scenario might change as the threat of the COVID-19 pandemic dwindles and the prospect of India playing a key role in the revival of global supply chain environments gain momentum,” says Ganesh Vasudevan, research director at DC Financial Insights Asia/Pacific.
Corporates are increasingly relying upon their bankers to help them with their working capital contingencies while supporting them in seizing the emerging opportunities. Under these circumstances, banks have the unique opportunity to respond to the corporates’ growing need for real-time information flow, financial advice, and funding support.
“Collaboration is the order of the day, with corporates pursuing value and efficiency from their banks. Traditional brick-and-mortar businesses are increasingly moving to B2B sales online, and corporates expect their bankers to understand the workflow to provide value-added solutions like seamless counterparty onboarding, provide a credit assessment, and finalize the settlement terms without using the traditional invoicing and collection process,” adds Vasudevan.
Some of the key corporate banking predictions that will impact the IT industry and both technology buyers and suppliers in India are:
- Predictive Liquidity Forecasting: COVID-19 forced CFO focus on liquidity. In response, 55 per cent of corporate banks will invest in supporting predictive liquidity management and 60 per cent will upgrade data and connectivity capabilities by 2024.
- Cloud-Based Corporate Banking: By 2024, 80 per cent of trade finance and treasury workloads will be running as SaaS or on PaaS architectures.
- Open Credit Decisioning: By 2023, to counter the uncertainty of the pandemic, 60 per cent of corporate banks will be revisiting credit scoring models and prioritizing an open data strategy to improve loan portfolio health.