Channel Strategy for Corporate Banking: Is Your Bank Paying Enough Attention?

According to the GTNews 2016 Transaction Banking Survey Report, 91% of North American corporates are evaluating their cash management partners. Of those, 27% indicated that improving availability of online and mobile banking tools were a major reason for reviewing their bank relationships, and 55% cited the need for an improved customer experience. Clearly, these responses are evidence that large numbers of corporate clients are less than satisfied with the channel tools and the overall digital client experience being offered.  Most of the banks we interviewed for recent research on this topic are hearing loud and clear that clients are looking for more streamlined, convenient, and faster access to banking services and information.  Our recent report, Strategies for Enhancing Corporate Client Experience: The Future of Attended Channels looks at strategies that leading North American and global banks are adopting to achieve the following goals:
  • Build out integrated portals to make invisible the organizational and product silos inherent in corporate banking.
  • Simplify the user experience.
  • Establish an omnichannel approach to providing consistent data and access to transactions across channels.
  • Enhance authentication options, including biometrics.
  • Expand self-service, including the ability to securely exchange documents and open accounts and new services.
While we found broad agreement on importance of the themes described above, we identified other aspects of digital channel strategy that varied widely from bank to bank.  The graphic below summarizes those opportunities for differentiation. Celent recommends that banks take the following steps to optimizing their future investments in attended channels:
  1. Define the Digital Strategy for Corporate Banking, Not Just the Digital Channel Strategy.  In the current environment, attempting to implement a successful strategy for digital channels in the absence of an overall digital transformation strategy for corporate banking is short-sighted.
  2. Understand How Attended Digital Channels Fit into Clients’ Daily Workflow.  Product management and strategy executives at many institutions are driving prioritization in channels based on a set of assumptions about client preferences that may not be valid. Mapping those client digital journeys from onboarding to servicing to managing exception situations for each client persona is critical.
  3. Reexamine the Role of Partners.  In reality, the delivery of services through attended channels has always involved multiple partners, whether the bank has developed an “in-house” solution or offers one or more off–the-shelf vendor solutions. As demands for “non-core” banking functionality grows and technology evolves to enable easier integration with multiple partners, the importance of the bank maintaining control of the user experience layer that is seen and touched by the client becomes even more critical.
The decisions being made today about attended digital channels — whether as a part of a larger digital transformation initiative, enhancing the channel user experience, or establishing a corporate banking portal — will have a significant impact on the ability of corporate banks to attract and retain clients.

AFP 2010 Roundup

Conference season has concluded. After several weeks on the road, I finally hit the last stop on the fall conference circuit – The AFP Annual Conference. This popular business banking conference took place last week in lovely San Antonio, Texas. The trend of increased attendance figures continues (see my BAI Retail Delivery post here), as the conference halls were loaded with attendees. The exhibit hall did seem a tad smaller than usual, although perhaps that was just due to the shape of the hall. In any case, after several days of good meetings with banks and software vendors, I noted the following themes:
  • Mobile solutions for corporates are becoming mainstream. My colleague Zil and I noted the start of this trend at the recent SIBOS conference in Amsterdam. There were a ton of announcements, and demos were being showcased in the exhibit hall. Announcements were made by PNC, Union Bank, and Citizens Financial Group to name a few. Bank of America Merrill Lynch was also showcasing a mobile demo for its CashPro product. I first wrote a report on corporate mobile banking in 2007, complete with a case study on Wells Fargo’s CEO Mobile. My report was a tad early for the market, and now that things are progressing I will revisit the topic in a 2011 report. Stay tuned!
  • Growing interest in small business online banking solutions. Many of the conversations I had at the AFP were on the topic of small business online banking. The majority of banks still have no clue what differentiates a small business online banking solution from a corporate cash management solution. Luckily, I have addressed this topic with a vendor evaluation of small business online banking solutions. The report was released last week, just in time for the AFP, and provided for lots of questions from banks and vendors. A second report on the subject is forthcoming and should be released by the end of the month.
  • Portal perplexity. To portal or not to portal? Several banks I spoke to are in the middle of trying to determine if they should build a corporate banking portal that would encompass all transaction banking services. This dashboard would provide quick task execution, at a glance info, and be fully customizable. The build versus buy debate was raging, coupled with the difficulty of integrating multiple vendor solutions.
  • The cash management market is still on fire. The number of banks that have sent out RFIs or RFPs is staggering. I am still amazed at how many banks are undertaking decisions here. The fact is however that some of these fires are the same ones we witnessed last year – sales cycles and decision making times are long. Solution replacement growth is still quite strong and I expect it to continue well into 2011.

 

Those are my quick hits from the conference. I welcome all comments and thoughts. I also encourage those of you who were in attendance to share your experiences!