Transaction banking is valuable to banks because of the stable returns, sticky client relationships, low capital requirements and because it’s a funding source for the bank. Following a sharp downturn in interest rates in 2020 which led to a collapse of net interest income on deposits and set transaction banking back years in growth, recent interest rate increases will regain momentum for transaction banking.
As banks seek to regain transaction banking revenue momentum, Celent views technology as both an opportunity and a challenge. Against a backdrop of traditional, vertically integrated bank product delivery models alongside disruptive, agile plug-and-play fintech players, Celent outlines three technology-based strategies for banks to regain transaction banking revenue momentum:
- Optimizing client engagement
- Expanding the ecosystem
- Monetizing underutilized data
Register now for the webinar featuring Patricia Hines, Celent Head of Corporate Banking, and Hariraj Subramanian, Head, Cash Management, Digital Transaction Banking, Gulf International Bank.