After the 2008 financial crisis, banks underwent a period of consolidation where they rebuilt capital, mended fences with regulators, realised efficiencies in back-office functions and invested in digitisation. By 2019/2020, banks were safer, more predictable, and better capitalised.
This meant the shock of COVID-19 in 2020-2022 was well-weathered by the banks. But while the traditional banks were battening down the hatches and weathering the storm, the fintechs and big techs were going to work.
As we look to 2022 and beyond, corporate banking has permanently changed. Clients are no longer at their office desks, and the face-to-face relationships that the business development managers had nurtured has been replaced by multiple touchpoints. Phone interactions are increasingly being replaced by digital platforms and interfaces. Clients demand an omnichannel experience, seamlessly switching between channels to create a frictionless banking environment.
The speed of corporate banking has simply accelerated, and the banks increasingly need to meld their services to the needs and demands of their clients. In parallel, the technology stacks are becoming more integrated into corporate systems with automation replacing manual effort and AI taking on more importance in decision-making.
This is posing a dilemma for traditional corporate banks. Many have been overwhelmed by the velocity of change, and there is an urgency to catch up – with good reason: about two-thirds of the value generated during an entire economic recovery cycle is created during the first two years after a crisis. Getting to work now will set them up for long-term prosperity.
Sustainability is the area where there’s the biggest mismatch in investment expectations between banks and their corporate clients. 44% of banks are prioritising investing in it and 48% of corporates would like to see more investment in sustainability.
Report - 10 min read
Global Research into Corporate Banking’s Future
A study of 12 countries and 900 senior decision-makers to understand how corporate banks must futureproof themselvesRequest Report