Tech-Driven Next-Gen Corporate Banking: Trends and Implications in APAC and Japan

External factors are driving disruptions as well as opportunities in corporate banking. Banks are at risk of falling behind front runners in their response. Players in the corporate banking arena need to make sure that they keep pace and take significant strides to compete effectively with financial institutions at the vanguard of technology, as well as digital giants and fintech firms. Companies need to stop taking product-centric approaches and embrace a customer-centric approach, one that reimagines and improves the “customer journey.” Banks need to digitize paper-based processes and put top priority on shifting from intuition-driven decision-making to data and analysis-driven decision-making.

Indeed, the biggest challenge may be persuading top executives to prioritize a comprehensive and inclusive approach to fostering organizational excellence across corporate banking operations. In many instances, it is difficult for all of the business units and support units to embrace a wholesale paradigm shift. Attachment to internal organizational silos, new team dynamics, and modifying control functions mean that making necessary changes is never easy.

At the same time, by taking the lead in the shift to the digital banking approach, cutting-edge corporate banking operations can establish a superior position versus other challengers and new entrants to the market. Some pioneering banks have already carved out comparatively large customer bases and are steadily accruing expertise related to data gathering, remittance processing, conflict resolution, and payment making. Some banks are already leading the charge as pioneers in data analysis and AI. Moreover, those banks are offering advanced services, including financing options related to operating capital using credit products and risk analysis.