Many people assume that the banking sector is quick to innovate, and that banks are actively on the lookout for technological solutions that will allow them to be more flexible in a modern-day environment. But in truth, most banks are cautious about going beyond the digitization of their existing processes. Large-scale digital transformations and tech overhauls are often seen as expensive, as well as disruptive to the institution’s workflow.
Bankers also tend to take a conservative stance when it comes to their methods and approaches to corporate banking—which, for most banks, delivers the lion’s share of the profits. What if the existing legacy system for corporate banking seems to work just fine? Why risk fixing something that doesn’t seem to be broken?
If this is what you believe about your own bank’s corporate banking tech stack, perhaps now is a good time to change tack. There’s mounting evidence that when banks invest in their corporate banking solutions, they’ll have much higher chances of improving their bottom line. The features and functionalities you’ll find on your new solution may go a long way in revitalizing your corporate banking program. Below are five key corporate banking features that you don’t want to keep missing out on.
Robust and Componentized Data and Computing Architecture
The first feature that you’ll benefit from when you upgrade your tech stack for corporate banking is better architecture compared to your legacy system. It will be particularly advantageous for you to invest in a cloud-based data and computing platform that’s fully integrable with common third-party solutions for corporate banking (for example, payment gateways). The most cutting-edge solutions are specially componentized for areas like credit, treasury, and cash and liquidity management. At the same time, these components can be expected to work together seamlessly and operate without the slow, cumbersome silos that are typical of old legacy systems.
In a nutshell, the improved architecture will be capable of doing two important things: dealing with a large volume of increasingly complex scenarios in corporate banking, and delivering the fully digitalized experience that many corporate customers crave from their banks. They are good enough reasons for investing in a new solution and retooling your organization’s workflow for corporate banking.
If your legacy system requires you to administer a majority of your corporate banking services through analog methods, it may be costing you more time, money, and labor than the system is worth. Moreover, a corporate banking program that relies on analog or merely digitized processes is not going to be sustainable in the future. What happens if you want to expand your corporate clientele to another locality or another region? How will your current processes be able to keep up with the increasing volume and complexity?
The answer lies in a corporate banking solution with high-powered automation capabilities. Incorporating more automation into your workflow will make you more efficient in your day-to-day dealings with corporate clients. In turn, the latter will trust in your standard of service and be more inclined to keep choosing you over other providers.
Excellent Data Governance
Just like other aspects of banking in the digital age, the area of corporate banking will benefit from a more data-driven approach. Data is king when it comes to making granular-level calculations, reporting, and analysis, and deciding on the best capital management strategies for individual enterprises.
A new solution will allow you to get a better handle of your overall data situation. From there, you’ll be able to institute long-term protocols for improving the availability, accuracy, security, and integrity of your corporate banking data. This will allow your bank to have full mastery over its corporate clients’ individual profiles and maximum clarity of vision for the whole of the corporate banking program.
Another feature that you’ll want to maximize on your new corporate banking solution is its real-time data analytics feature. Through this feature, you and your corporate clients will be able to unlock instant visibility over their global cash position, corporate liquidity, and other areas that matter to their business’s financial situation.
With powerful real-time analytics at your disposal, you’ll be able to give custom advice to your corporate clients about movements in their cash situation. They’ll see you as crucial partners when it comes to helping them manage their working capital, and they will be loath to leave your banking ecosystem.
Intelligent and Custom-Tailored Pricing Schemes
As a result of onboarding a corporate banking solution with more advanced payment infrastructure, your bank can also bolster its revenue management abilities and find new ways to maximize earning potential. One way is through intelligent pricing schemes for different types of corporate clients.
A solution with built-in features for intelligent pricing will allow you to ditch the generic and one-size-fits-all strategies you may have relied on in the past. Instead, you’ll be able to implement pricing schemes for corporate services that are much more responsive to your clients’ needs and current circumstances. The reward for rolling out a custom-tailored approach to pricing may be handsome indeed—corporate clients will regard you as a forward-thinking and approachable bank, and they will be more than happy to do business with you.
The Role of Technology in Improving Efficiency and Relationship Management in Corporate Banking
Working with new corporate banking technologies may initially seem like a stressful task. But in the long run, it is better than missing out on lucrative corporate business opportunities. You’ll be able to get significant returns on your investment if the upgrade results in better value for your corporate banking services, greater efficiency in implementing corporate transactions, and strengthened relationships with your corporate clients.
The more features you can offer from your current tech stack, the more willing your corporate clients will be to make you their “one-stop shop” or their main provider. Don’t miss out on this opportunity to invigorate your corporate program, and consider upgrading to a modern solution now.