Treasurers, Your Bank Can Be More Than Just A Service Provider
Banks must innovate and use technology to meet corporate clients' evolving needs amid challenges like inflation and the demand for sustainable practices.
Banks must innovate and use technology to meet corporate clients' evolving needs amid challenges like inflation and the demand for sustainable practices.
Corporate clients today expect banking partners that not only provide essential financial services but also assist them in navigating the complex macroeconomic environment. This includes challenges such as high inflation, changing monetary policies, ongoing supply chain issues, and the urgent need to reduce carbon footprints.
To stay competitive and meet these evolving expectations, banks must reimagine their service delivery models, leveraging innovative solutions and technology to offer a superior client experience.
Traditionally, relationship managers (RMs) served a small number of clients through high-touch, in-person interactions. However, this model is increasingly seen as inadequate in today’s fast-paced business environment. Corporate clients now demand banking partners that can offer a broader range of services, rapid execution, and deep industry expertise.
The limitations of traditional coverage models have become apparent, with an overemphasis on large accounts leading to missed opportunities in cross-selling and providing value to smaller clients.
Additionally, the underutilization of technology, such as generative AI applications and automated solutions for repetitive tasks, has hindered banks’ ability to serve their clients efficiently. This evolving landscape necessitates a reimagined approach to how banks interact with and serve their corporate clients, emphasizing flexibility, innovation, and a deep understanding of client needs.
To enhance service delivery, banks must address several key areas. Firstly, the traditional model’s overemphasis on large accounts often leaves medium and smaller clients feeling undervalued. This imbalance suggests a need for a more equitable distribution of attention across all client sizes, ensuring that every client feels prioritized.
Secondly, the integration of technology in service delivery is paramount. The current underutilization of technological advancements, such as generative AI and automated solutions for tasks like onboarding and risk monitoring, limits banks’ efficiency and responsiveness. By fully leveraging these technologies, banks can streamline operations, freeing up relationship managers to focus on generating innovative ideas for clients.
Lastly, improving collaboration across different product areas, sectors, and regions within banks can break down silos, fostering a more cohesive and strategic approach to client service. Addressing these areas will be crucial for banks aiming to meet the evolving needs of their corporate clients effectively.
Leading banks are adopting a multipronged approach to revolutionize client services, integrating highly relevant, personalized coverage; inside sales with a hybrid team of centralized relationship managers; and direct digital engagement. This innovative model caters to the diverse needs of corporate clients, offering a blend of personal interaction and digital convenience.
For high-value clients, banks are focusing on insights-driven, high-level interactions, leveraging sector-specific knowledge and internal research to generate tailored recommendations. Medium-value clients benefit from hybrid sales teams, which combine centralized relationship managers with product specialists to cover a broad array of clients efficiently.
Furthermore, the enhancement of customer experience through direct digital sales is pivotal. Banks are developing next-generation business apps and platforms that provide executives with quick access to crucial information and transaction approval capabilities.
These solutions not only streamline operations but also open new avenues for revenue generation, establishing banks as indispensable partners in their clients’ success.
Technology is at the heart of the transformation in commercial banking, enabling banks to meet and exceed the evolving expectations of their corporate clients. The integration of generative AI and automated solutions into banking operations has revolutionized service delivery, making processes like onboarding, KYC, and risk monitoring more efficient and less time-consuming.
This technological advancement allows relationship managers to dedicate more time to understanding and addressing client needs, fostering innovation.
Additionally, the use of actionable and meaningful client or industry insights, powered by advanced analytics, enhances the ability of banks to provide personalized services and drive cross-selling opportunities. The deployment of digital platforms and apps further empowers clients with real-time visibility and control over their financial operations, enhancing decision-making and operational efficiency.
Through technology, banks are not just service providers but strategic partners, offering insights and solutions that support their clients’ growth and success.