e-Corporate Banking in Europe
| Paris, France January 3, 2003
During the past five years, European banks have invested heavily in online retail banking solutions; however, little has been done to develop the Internet for use by the corporate segment. In 2001, IT spending on retail banking in Europe exceeded 600 million, while only slightly more than 200 million was spent on the corporate side. This trend is changing. Investments in e-corporate banking solutions are predicted to grow by 200% by 2005, to 450 million.
Celents new report, , finds that as banks and corporations become more aware of the benefits of web-based cash management solutions, banks are increasingly offering more sophisticated solutions to this segment. By 2005, all major banks in Europe will provide specific features for corporate clients on their Web sites to supplement the existing balance inquiry and payment initiation features virtually all them already offer.
"Despite national and regional differences, European banks have, as a whole, have preferred to use their internal IT departments for deploying new e-corporate banking solutions" add analyst Axel Pierron, author of the report. " But this trend will change, and by 2004, outsourced development will represent more than 30% of deployments in e-corporate banking solutions".
"Although European businesses tend to use multiple banks, almost 50% of their data exchange occurs with their primary bank " says Axel Pierron. "Banks need to leverage the Internet in order to cement their relationships with leading corporate customers, and prevent them from going elsewhere"
The report examines the current states of e-corporate banking market in Europe. It analyzes the functionalities already available on banks corporate web site, the size of the market, banking revenue structure, and the existing factors affecting the corporate banking market. It also provides projections for adoption rates, future functionality, source of income and methods of deployments chosen by banks. The report concludes with key points for banks considering deploying new functionality within their corporate banking web-sites.A is available online.
of Celent Communications' Wholesale Banking research service can download the report electronically by clicking on the icon to the left.