Top Trends in Corporate Banking 2014: There Is No Business As Usual

by Gareth Lodge,  Jacob Jegher, April 24, 2014
Industry Trends
Global

Abstract

Every year Celent gathers its analysts across the globe to summarize the top trends in retail and wholesale banking for the major geographies.

Over the course of the year, Celent analysts inevitably cover a broader range of topics and trends than they are able to address in their published reports. Some issues get discussed in the Celent Banking blog, and others in private conversations as part of the analyst access available to Celent’s clients.

The issues in this report are not necessarily the most important issues in any given country, or even any given institution. However, collectively, they are a reasonably accurate portrayal of important topics in the developed markets.

“In many ways, 2013 felt like a return to business as usual for corporate bankers and their clients. Economic recovery finally appears to be occurring across the globe (despite some slowdowns in China and emerging markets), and with that comes a renewed focus on how to best leverage technology to foster growth, automate inefficient processes, and make informed decisions,” notes Gareth Lodge, Senior Analyst in Celent’s Banking group and author of this report.

“This isn’t to say that risk and regulation are off the table. In fact, risk and regulation are business as usual for banks in the 21st century,” he adds.

Although risk management and regulation permeate every single one of the trends that we discuss in this report, they are no longer the primary focus when it comes to corporate banks investing in technology. Regulation (actual and anticipated) is playing a larger role than ever in the strategic decisions corporate banks are making about which lines of business to enter, invest in, or exit.

Most of the trends described in this report aren’t new. Some, like advancing corporate client efficiency, have been relevant for decades, but are taking on new urgency given the competitive pressures that banks face from both traditional and nontraditional competitors. Others in this report are more recent trends where, frankly, progress has been slower than anticipated. Corporate banking appears to be making progress at a glacial pace. Despite the conventional wisdom that changes in consumer expectations about technology will create substantial disruption, these changes aren’t moving quite as fast as they are in retail banking. Nevertheless, it would be foolhardy for any corporate banking executive to ignore them.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

3

Digital and Omnichannel

4

 

Juggling Investments in Legacy and New(er) Digital Channels

4

 

Addressing New Models for Connectivity

6

Innovation and Emerging Technologies

8

 

Embracing the Cloud

8

 

Advancing Client Efficiency

9

 

Enhancing Internal and Client Visibility

10

Legacy and Ecosystem Transformation

14

 

Adapting to Vendor Consolidation

14

 

Reshaping the Commercial Loan Technology Environment

15

 

Optimizing the Business Mix in Response to Regulation

17

Trends to Keep an Eye On

19

 

eBAM

19

 

Bank Payment Obligation

19

 

Data Security and Digital Identity Management

19

Path Forward

20

Leveraging Celent’s Expertise

22

 

Support for Financial Institutions

22

 

Support for Vendors

22

Related Celent Research

23

Sign in to download reports and access personalized information