Corporate banking in India is expected to see a significant evolution as it redesigns corporate customer experience (CX) on a digitalised scale by leveraging technology and innovations.
According to a report by the International Data Corporation (IDC), 80% of the banks in India will run trade finance and treasury workloads on SaaS or PaaS architectures by 2024.
The report, titled IDC FutureScape: Corporate Banking Worldwide 2021 Predictions, said that India is still at a nascent stage when it comes to product and services offering in the corporate banking sector. However, this is likely to change given the increasing digitisation of the economy and globalisation of Indian companies.
“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,” Ganesh Vasudevan, research director at IDC Financial Insights Asia Pacific, said in a statement.
The report has made several predictions for corporate banking in India, which are likely to impact the IT industry on both the technology buyers and supplier sides.
Covid-19 forced the focus of CFOs to liquidity. At least 55% of corporate banks will invest in supporting predictive liquidity management and 60% will upgrade data and connectivity capabilities by 2024, the report said.
By 2023, to counter the uncertainty of the pandemic, 60% of corporate banks will revisit credit scoring models and prioritise an open data strategy to improve loan portfolio health, it said.
Corporates are increasingly relying on banks to help them with working capital. Under these circumstances, banks get a unique opportunity to use their resources to cater 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,” Vasudevan said.