The State of Lending to Large Corporations

Although banks are still short on extending loans, large corporations are already looking at their recovery.

In this report, The State of Lending to Large Corporations, Celent finds that large corporations are no longer willing or able to wait for credit offices of banks to make lending decisions. They are opting for alternative sources of funding.

While banks are reshaping their business models, they also have to look at technology in a new light. Automation is not the value proposition moving forward. The large financial institutions’ need to consolidate requires systems integration and aggregation of data, all to be transformed into intelligent information.

“One of the most significant traces of the rearrangement of bank relationship policies is corporate treasurers’ demand for banks to show more entrepreneurial behavior and be willing to support lending policies typical of an investment bank,” says Enrico Camerinelli, Senior Analyst with Celent’s Banking Group and author of the report.

This report examines the options of alternative funding sources available to large corporations (i.e., what corporate clients want) and assesses the functionality a corporate lending management system must have to support the bank in servicing its large corporate clients.