The findings of the The Global Treasurer’s Transaction Banking Survey 2018 highlight a number of areas where corporates and banks have significantly different expectations of each other. The survey identifies how well or not corporate treasurers and banks engage with one another. For instance, this year corporates are looking to increase the number of banking partners they work with, primarily due to banks not providing sufficient coverage.
A number of key product areas are coming under scrutiny this year, driven it seems by plummeting corporate satisfaction with current offerings. In engaging with their banks, corporates have turned to treasury workstations, as banks continue to fall short in providing a preferred access point— although as expected, there is growing interest in open APIs.
Another key challenge for banks is that nearly a quarter of corporate respondents are now considering a non-bank provider for a number of key services. Could it be time for banks to reconsider their approach to open banking? Currently, their strategies seem unclear, as many continue to cite PSD2 as a top concern for 2019.
Despite these challenges, there is much to learn and take from this year’s survey—and tremendous business and customer opportunities for banks in the year ahead. The rate of change in bank products and services is accelerating, brought about by a number of key market dynamics along with technological innovation.
For example, banks are now forming strategies around the need for realtime services—driven by the dash to real-time payments in many parts of the world—and are adopting and embedding different business practices accordingly. Separately, developments within the FinTech community have raised customer expectations and competition, causing banks to review their own technological systems. Further, banks have an increased interest in the potential of artificial intelligence and cognitive technologies to elevate their offerings and increase their efficiency.
Behind this lurks open banking and PSD2, which will drive a great deal of further structural change across the market. CGI believes there to be a great amount of opportunity for all. We recommend the banking industry examine its path to digital transformation in four areas: modernization, digitization, extending the ecosystem and protection.
Modernization involves improving agility by simplifying the IT environment while automating and streamlining processes through the integration of new technologies. We already can see leading banks digitizing across the globe by embracing emerging intelligence technologies and data analytics for enhanced customer personalization, along with chatbots and robo-advisors.
In addition, by engaging with a wider ecosystem of customers and third parties, such as FinTechs and regulators, banks have been extending their reach—a trend that seems likely to continue. And, of course, with cyber criminals becoming more intelligent, banks are investing more in protecting themselves from financial crime and cyber attacks to preserve the trust of their customers.
Join us on Wednesday, November 14, 2018 at 3.30pm GMT for a webinar discussing this year’s key findings and insights.
For further information and to register for the webinar, click here.
About the author
Jerry Norton is vice president, Global Financial Services at CGI.