Understanding the Technology Trends Affecting Corporate Banking
According to Oliver Wyman, technology has grown to become 15–20% of the wholesale banking cost base. But the $30 billion being spent covers all core business functions and support areas, with limited funds left over for “grow the bank” initiatives, business-led programs, and innovation investments. Oliver Wyman says that larger and more profitable banks will inevitably have deeper pockets, and they estimate that mid-tier institutions are potentially being outspent 3:1 by the largest players, while still competing across a similar waterfront of business. But it isn’t the size of the technology budget that is critical. It is understanding the trends affecting corporate banking and making targeted decisions for maximum effect.
Against this backdrop, Celent recently published its latest edition of the top trends in corporate banking that executives around the globe need to be aware of. Some are just beginning to emerge (IoT for supply chain transparency), while others have been around a long time (advancing commercial lending digitization). In its 2018-2019 edition, Celent highlights 10 trends, grouped into three themes: achieving digital and omnichannel ambitions, exploiting innovation and fintech, and executing legacy and ecosystem transformation.