Top Trends in Corporate Banking: Asia, Europe, and North America

by Bart Narter, January 24, 2011
Operations/ Benchmarking
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Every year Celent gathers its analysts across the globe to summarize the top trends in banking for the major geographies: Asia, Europe, and North America. We synthesize key trends in each geography, gleaned from bankers and vendors, clients and nonclients, and regulators and central bankers. We see banks now making offensive, rather than defensive, moves, looking for ways to grow their business.

The practice of banking became fundamentally more difficult during and after the global financial crisis of 2009. Banks in all geographies experienced the fallout of a challenging economy that has only begun to improve. Banks are also subjected to increased public and regulatory scrutiny as a result of the recent near-collapse of the financial system. In last year’s report, Celent found a triumvirate of global priorities:

  • Managing risk
  • Reducing costs
  • Improving multichannel delivery

In this report, Top Trends in Corporate Banking 2011, Celent’s crystal ball shows many banks going back to making offensive moves. The corporate side of the bank suffered less during the crisis than the retail side, especially transaction services and cash management. Asia did not suffer as badly as other regions during the crisis, and momentum there only strengthens.

  • Multichannel remains on the top three list from mobile cash management to user experience in Internet banking.
  • Payments are moving to the fore. Cash management is a fee-generating business that has withstood the crisis. Banks are investing heavily across the globe in this area.

"While there are many initiatives in corporate banking across the globe, some themes recur. Banks are investing in fee-generating businesses such as global transaction services and the payments infrastructure to support this.” stated Bart Narter, author of the report and Senior Vice President of the Banking Group at Celent. “They are also investing in channels such as remote deposit capture, mobile, and Internet corporate banking to link corporate customers closer to the bank.”

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

3

Global Trends

5

 

Payment Services Hubs: Getting Closer to the Vision

5

 

B2B Solutions Are Opening Up and Moving Downstream

6

 

Online Corporate Cash Management Moves Steadily Along

7

 

Basel 2.5 and Basel III: The Next Wave

8

 

Making IT Slimmer and Smarter

10

Asian Trends

12

 

Regional Banks Continuing International Expansion Initiative

13

 

Expansion of Foreign Banks into Emerging Asian Markets

13

 

Rural Banking Takes Root

13

 

Accelerating Shift to SME Banking

13

 

Smaller Banks Turn to Outsourcing and BPO

13

European Trends

14

 

Mixed Success of the European Harmonization Journey

14

 

Mobile Banking Services

15

 

Improved Supply Chain Capabilities

16

 

Risk Management and Stress Testing Systems

16

 

Expansion into European Markets

16

 

Cost Reduction

17

North American Trends

18

 

Remote Deposit Capture: Regulator’s Unintended Consequences

18

 

Lockbox: Making Hay while the Sun Shines

22

 

Small Business Online Banking = Confusion

24

 

Core Banking Starts Moving in North America

25

Conclusion

27

Leveraging Celent’s Expertise

28

 

Support for Financial Institutions

28

 

Support for Vendors

28

Related Celent Research

29

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