Banking Outlook 2017 - Commercial and Transaction Banking

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Banking Outlook 2017 - Commercial and Transaction Banking

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In the field of Commercial and Transaction Banking, transaction-based businesses are becoming more critical. How will such developments shape the Commercial and Transaction Banking industry next year, and how can firms respond to these trends? Download the Banking Outlook 2017.

Transaction-based business
Transaction-based businesses will become the more critical of the two as banks are likely to continue moving away from capital-intensive businesses, due to regulatory pressures that put a cost burden on commercial banking operations.

 

Customer and business growth
Customer and business growth will likely be a balancing act of product innovation and cost savings. To gain efficiencies, banks are expected to continue rationalizing customers, products, and markets, including de-risking and repricing to better balance risk and reward. On the revenue side, banks are likely to increase focus on new segments, particularly middle-market customers with global aspirations.

 

Operational transformation
Efficiency requirements should dominate operational transformation decisions. As returns on reengineering operations diminish, banks will likely reinvent operating models, including externalizing services that can be mutualized. Part of this operations overhauling will include digitization and robotic process automation (RPA), especially in ledger management, liquidity tracking, trade finance contract repositories, and customer onboarding processes.

 

Risk and regulatory agenda
Regulations not likely to go away should steer banks clear from risky and capital-intensive business. The phase-in of the net stable funding ratio under Basel III will place additional management constraints on banks’ liquidity, requiring some reconfiguration of pricing arrangements with clients. Among existing regulations, know-your-customer and anti-money-laundering (KYC-AML) should remain top priorities.

 

Technology priorities
End-to-end digitization will likely be among the primary technology goals. The cloud is expected to be the primary tool for upgrading core transaction banking platforms, bringing cybersecurity concerns to the forefront. Banks will likely leverage big data and predictive analytics to offer tailored financing and lending solutions to corporate customers. RPA tools will be merged with cognitive intelligence across both the front- and back-office. Blockchain applications for cross-border payments and trade facilitation are likely to mature.
 

Banking Outlook 2017

More information?

Do you wish to have more information about the Banking Outlook 2017? Please contact Emeric van Waes via +31882884619 / evanwaes@deloitte.nl

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