New report highlights $915Bn 2020 revenue pool for global corporate banking – winners will be those that can exploit technology most effectively
A new report from Celent forecasts that global corporate banking revenue is set to grow 4 percent from 2016 to 2020, a doubling of the growth rate recorded between 2010 and 2016. The report highlights that transaction banking and commercial lending represent a $915Bn revenue opportunity through 2020, and high-performing banks have an opportunity to grab an outsized share of the corporate banking wallet. In addition, the report predicts that automation and deep digital adoption could save the wholesale banking sector between $15Bn and $20Bn.
The report from Celent, ‘Connected Corporate Banking: Breaking Down the Silos’, looks at the defining capabilities banks need to serve corporate banking customers. It also assesses vendors based on the full breadth of their corporate banking capabilities. Finastra’s corporate banking platform emerges as the broadest, most integrated suite of applications, connected on a single platform for corporate banking. The analysis covers bank requirements and vendor capabilities across cash management, trade and supply chain finance, lending and credit, digital channels and back office and accounting capabilities, including payments and loan servicing.
Patricia Hines, Senior Analyst at Celent, said, “In 2016 corporate banking made up 38% of overall operating income across 20 of the world’s largest banks. Banks that want to attract and retain this business must continue to invest in updating and enhancing their technology infrastructure while embracing emerging technology. Integration underpins this idea of ‘connected corporate banking’ and is crucial to providing the efficient services corporate clients demand and providing the platform every bank needs to differentiate their service offerings in the future.”
Simon Paris, Deputy CEO at Finastra said, “Celent’s research highlights the opportunity for banks to delight their corporate customers and increase fee-based income at the same time. Whether banks are offering a ‘best of breed’ approach across each of their corporate banking services – such as lending, trade, cash management and payments – or adopting a ‘best of suite’ approach – providing connected corporate banking and a 360 degree view of their customer relationships – the report underpins Finastra’s platform as world-leading in every dimension. Banks of all sizes can leverage our corporate banking platform to gain competitive advantage. A willingness to embrace this alongside other innovations, like AI, machine learning and distributed ledger technology, supports future-proof corporate banking systems and stronger corporate customer relationships.”
The publication of the report coincides with Finastra’s release of the latest version of its connected corporate banking platform. Finastra’s Fusion architecture brings together best-of-breed corporate banking component solutions that can be deployed in unison or standalone, covering omni-channel corporate banking, trade and supply chain finance, payments, cash management and treasury services applications. Cross-business data automation, deep digital analytics and a common party solution to manage client data across the business mean banks and their customers can move towards a single view of business to simplify operations, optimize data to boost sales and manage risk and digitalize to effectively embrace third party artificial intelligence and distributed ledger technology solutions.