The consulting firm Capgemini has published reports on trends in the Commercial Banking and Payment Models 2022, which explores and analyzes the main business trends that are expected to shape this year’s financial services ecosystem and provides useful information to decision makers. These reports are backed by experience in the sector with leading clients and experts with a long professional career in the economic sector.
Goodbye business banking, hello experience business
Simplifying business processes through intelligent automation for a superior user experience becomes a must for banks. Traditional players will follow a dual approach to providing this customer experience (CX) enhancement, with more than 60% of commercial banks opting for collaborations with FinTechs and increasing internal investment in new technologies.
Turning point in commercial banking: paying attention to ‘as a service’ models
The transformation to digital platforms of the new models will help commercial banks move from a one-size-fits-all approach to a collaborative process that engages existing customers and, in turn, increase uptake. Through these models, banks can attract a broader customer base at a lower cost. This presents a great opportunity for them to integrate their services with fintech and non-financial offerings, open new business with attractive margins, and gain deeper insights into consumer behavior through greater amounts of data.
Real-time cash management to strengthen competitive advantage
The evolution of real-time payments is leading treasurers to anticipate automated functionality to drive operational efficiency. The application of these solutions will make it possible to monitor various operational indicators in real time and save considerable time in the daily processes of treasury management, reducing the liquidity buffer. The separation of legacy banking interfaces will allow treasurers complete control of their cash and activity.
The ‘Cash Flow’ forecast transfers useful information to customers to fuel growth
Banks are leveraging intelligent automation to improve cash flow forecasting, helping customers make informed business decisions. More banks are expected to assess customers’ financing needs and customize their offerings in critical areas such as loan, trade and supply chain finance. As the customer experience improves, so will trust and loyalty.
FinTechs are creating commercial banking ecosystems and building B2B super-applications
After disrupting payments and retail banking, new-age business is shaking up corporate financial institutions. Traditional commercial banking is expected to take advantage of the market movement and join or build an ecosystem to drive new business and retain existing customers. In the same way, the most strategic will take advantage of the wide range of providers available to help drive efficiency and innovation in workflows to better serve customers.
New alternative and hyper-flexible lenders give a radical change to loans for SMEs
Through easy-to-use, fast, and efficient technology offerings, lenders are meeting pent-up demand from small and medium-sized businesses. FinTechs have revolutionized these loans by providing them with a more comfortable and faster processing capacity, which requires fewer requirements and offers a better customer experience (CX).
Streamlined and paperless business processes are driving the transformation of the back office
Artificial intelligence-driven optical character recognition (OCR) is redefining bank back-office and core services. With manual checking, bankers typically spend up to 80% of their time entering and processing document data. Thanks to the OCR service, this procedure will be 25 times faster and will eliminate the risks of entering incorrect information during data upload.
Commercial lenders are leveraging secondary data to optimize credit decisions
Taking advantage of the abundance of data and access to new technologies, banks are adding complementary data and analytics to their suite of lending services. This use of information has helped streamline the loan process, making it more efficient and personalized for their clients.
The supply of sustainable financing grows to boost the low-carbon economy
Banks are stepping up their sustainability initiatives to stay true to regulations while uncovering monetization opportunities and building a green image. In addition to meeting these requirements, banks can increase their profit potential since, currently, 90% of companies that require loans seek the CSR commitment. These opportunities could lead to additional capital requirements, driving a business opportunity in excess of $3 billion in key markets such as Germany.
Smart contracts will enhance real-time trading and settlement functions
Banks are working to reduce the most significant delays while accelerating efficiency in smart contract trading and settlement. With these changes, banks will be able to digitize syndicated loans in 2022 and beyond, which has traditionally been a significant inconvenience for businesses. This will lead to additional growth for these companies, while also driving new revenue streams for banks and reducing operating costs with these shorter settlement cycles.