Digital Corporate Banking for the Connected Corporate Customer
•
14 j'aime•3,217 vues
Learn how your bank can meet the demands of the connected corporate customer. These slides will focus on how to improve the commercial banking customer experience, generate a 720 degree view of the client and bank operations, and provide real-time reporting capabilities to customers.
Recommandé
Recommandé
Contenu connexe
Tendances
Tendances (20)
En vedette
En vedette (19)
Similaire à Digital Corporate Banking for the Connected Corporate Customer
Similaire à Digital Corporate Banking for the Connected Corporate Customer (20)
Plus de Misys
Plus de Misys (7)
Dernier
Dernier (20)
Digital Corporate Banking for the Connected Corporate Customer
- 1. A CEB Sponsored Webinar by Misys Digital Corporate Banking for the Connected Corporate Customer
- 2. TODAY’S SPEAKERS © 2016 CEB. All rights reserved. Josh Downie Senior Executive Advisor, Commercial Banking As a Senior Executive Advisor in the Financial Services Practice at CEB specializing in Commercial Banking, Josh’s primary role is to provide research and advisory services, working with Banking and Financial Technology executives on their business and technology challenges, and providing insights regarding market trends and investments related to Commercial Banking technology. 2 Johanna Pugh Global Head of Lending With 20 years of experience in the lending and fintech industry, Johanna has a wide range of experience across the spectrum of credit, corporate banking and innovation. At Misys, Pugh is responsible for the strategic direction and client engagement around FusionBanking Lending part of the FusionBanking Corporate suite of solutions, leading activities for global markets. Pugh is a passionate speaker on topics including streamlining lending practices, digitization in corporate banking, and best practice software implementation.
- 3. © 2016 CEB. All rights reserved. ROADMAP FOR THE PRESENTATION Commercial Banking Business Environment Improving Customer Service Through Digitization Current State of Digital Investments 3
- 4. Cost-to-Income Ratio for Retail and Commercial Banks RISING COSTS AND MIDDLING RETURNS Net Income for FDIC Insured Commercial Banks, in Billions, USD Source: World Bank, Bank’s Cost to Income Ratio for United States, <https://research.stlouisfed.org/fred2/series/DDEI07USA156NWDB>; FDIC Quarterly Banking Profile, 2015. Note: Not Seasonally Adjusted. 2008 2009 2010 2011 2012 2013 55% 60% 65% 57% 59% 60% 60% 61% 62% 5% Increase in Operating Costs 2010 2011 2012 2013 2014 2015 $0 $350 $700 $389 $216 $382 $212 $385 $227 $382 $232 $386 $228 $387 $228 $605 $594 $613 $613 $614 $615 Net Interest Income Net Non-Interest Income © 2016 CEB. All rights reserved. 4
- 5. Customer Buying Behaviors are Changing CUSTOMER BUYING BEHAVIORS ARE CHANGING Types of Alternative Lenders Used by Small Businesses Banks 75% Alternatives 4% Blended 21% 49% 22% 21% 1% 1% 16% 16% 53% 6% 13% 0% 30% 60% Commerical Finance Company Supplier Credit Provider Small Business Credit Card Provier Non-Bank, Web-Based Credit Provider Government-Backed Credit Provider Alternative Only Blended Source: CEB 2014 Small Business Owner Survey. n = 471 © 2016 CEB. All rights reserved. 5
- 6. Intended Financial Actions in Coming Year, by Business Revenue NO PRESUMPTION OF CUSTOMER LOYALTY 59% 59% 30% 25% 0% 30% 60% Add or Purchase a New Account or Product (Including Credit) from My Company's Primary Financial Provider Add or Purchase a New Account or Product (Including Credit) from a Non-Primary Financial Provider $500 Million or Less Greater Than $500 Million © 2016 CEB. All rights reserved. 6 Source: CEB 2015 Commercial Banking Relationship Survey of Midsized Companies. n = 49
- 7. © 2016 CEB. All rights reserved. ROADMAP FOR THE PRESENTATION Commercial Banking Business Environment Improving Customer Service Through Digitization Current State of Digital Investments 7
- 8. Bank Performance Versus Important Selection Criteria SERVICE QUALITY IS CRITICAL Corporates That Would Consider Switching Banks for Better Service 89% 82% 76% 69% 69% 69% 65% 63% 61% 73% 64% 43% 27% 60% 60% 55% 40% 53% 0% 50% 100% Service Quality Product Quality Stability Transparency Price Competitive Customized Offerings Technology Sophistication Innovation Depth and Breadth of Service Offerings Bank Performance Degree of Importance Would Not Consider 32% Would Consider 68% © 2016 CEB. All rights reserved. 8 Source: Ernst & Young (2012); Finextra; Pegasystems (2010).
- 9. Correlation Between Online and Mobile Access and Customer Service DIGITAL CHANNELS INVESTMENT LINKED TO CUSTOMER SERVICE Payments Cash Management FX Trade Finance Liquidity Pooling / Netting Bank-Assisted Open Account Forecasting 40% 50% 60% 70% 80% 20% 30% 40% 50% 60% 70% 80% 90% 100% CustomerSatisfactionbyMainBankingPartner (PercentofCorporatePractitionersRatingService"4"or"5"ona5-pointscale) Product Areas Covered by Online or Mobile Banking Solutions (Percent of Banking Service Providers) Source: 2015 AFP Transaction Banking Survey, Association of Financial Professionals. n = 784 © 2016 CEB. All rights reserved. 9
- 10. Percent of Business Leaders in Financial Services DIGITAL: IMPORTANT, BUT UNCLEAR 35% Agree 65% Disagree n = 209 FSI Business Leaders. Source: CEB 2016 Digital Enterprise Survey. “ I Have a Clear Understanding of How Digitization Applies to My Organization.” “Our key issue is to get bankers comfortable with digital.” Australian Commercial Bank Executive “Everything is trending towards “digital”—customers have expectations that banks will deliver.” North American Commercial Bank Executive “There are so many buzz words — data scientist, digital marketing, big data…” North American Commercial Bank Executive “Our digital strategy needs improvement." South African Commercial Bank Executive “We want to use digitization to improve our core capabilities.” European Commercial Bank Executive “What’s the impact of digital on the RM?” European Commercial Bank Executive “What does define a digital bank?” Asian Commercial Bank Executive “Commercial banking is still a little behind on our use of digital.” North American Commercial Bank Executive “How do we invest in new technology?" North American Commercial Bank Executive © 2016 CEB. All rights reserved. 10
- 11. Digitally-Enabled New Value to Commercial Banking WHAT DIGITAL COULD MEAN FOR THE COMMERCIAL BANK Bank Value Through Digitization Shared Value Through Data Analytics Customer Value Through New Digital Possibilities What It Requires Automating what was manual, and rethinking processes Identifying what data is available to enhance both bank and customer decision making Rethinking how the bank can create value for the customer What It Sounds Like “Perhaps the most important complementary innovations are the business process changes and organizational conventions that new technologies make possible.” –Erik Brynjolfson, Andrew McAfee, The Second Machine Age “The first pillar of data science, and analytics in general, is a culture of information-based decision making.” –Jacob Bedard, Director, Analytics and Insights, ATB Financial "With Cash Flow Insight, I have time to focus on the big picture, like growing our business." -Samuel T. Freeman & Company Source: CEB Analysis, The Second Machine Age, https://www2.pnc.com/CFO/cashflowinsight.html © 2016 CEB. All rights reserved. 11
- 12. THE DIGITAL EXPERIENCE Source: Uber, accessed 24 May 2016, https://www.newsroom.uber.com © 2016 CEB. All rights reserved. 12
- 13. © 2016 CEB. All rights reserved. ROADMAP FOR THE PRESENTATION Commercial Banking Business Environment Improving Customer Service Through Digitization Current State of Digital Investments 13
- 14. Competitiveness of IT Solutions Compared to Other Banks and Likelihood of Improvement Percentage of FS Executives DIGITAL IS A COMMERCIAL BANKING PRIORITY 25% 19% 23% 20% 39% 87% 70% 69% 62% 47% 0% 50% 100% Digital Channels Data & Analytics Payments Lending Risk Management Competitiveness of IT Solutions Compared to Other Banks Likelihood of the Commercial Bank to Make a Major Change © 2016 CEB. All rights reserved. 14 Source: CEB Commercial Banking 2016 Agenda Poll. n = 98
- 15. Top Reasons for Making Improvements to Digital Channels Over the Next One to Three Years Percentage of FS Executives Selecting Reason as One of Top Two CORPORATE CUSTOMERS WANT DIGITAL IMPROVEMENT 77% 50% 42% 27% 4% 0% 50% 100% To Meet Evolving Customer Need To Keep Up With Changing Industry Standards To Improve Business Performance To Achieve Competitive Differentiation To Address Regulatory Requirements © 2016 CEB. All rights reserved. 15 Source: CEB Commercial Banking 2016 Agenda Poll. n = 98
- 16. 42% 40% 40% 42% 36% 41% 31% 37% 32% 39% 35% 34% 0% 50% 100% Cash Forecasting Liquidity Mgmt. Transaction Initiation Receivables Mgmt. Payables Mgmt. Supply Chain Finance Online Mobile Opportunity for Improvement Level of Channel Capability by Activity THERE’S STILL A LONG WAY TO GO © 2016 CEB. All rights reserved. 16 Source :CEB 2016 Financial Services Technology Survey. n = 256 CEB 2016 Financial Services Technology Survey.
- 17. Three Statements that Best Describe Our Digital Focus Percentage of Executives Selecting DIGITAL INVESTMENT NEEDS TO BE MORE THAN CHANNELS 35% 30% 27% 25% 21% 24% 27% 26% 21% 0% 20% 40% Customer Access Online Access Real-Time Access Seamless Delivery Anytime Anywhere Marketing Analytics Internal Processes Integrating Processes Ecosystem Connections Data & Analytics Digital Channels Customer Integration Process Improvement Source: CEB 2016 FS Business Executive Survey n = 274 .© 2016 CEB. All rights reserved. 17
- 18. 1 The challenge © Misys 24 May 2016 Complexity Disconnected user experience Onboarding? Follow the customer? Sales, service and operational inefficiency Fragmented digitalisation No single customer view Slow technology adoption Lack of agility for right product, right time Data islands Trapped capital and liquidity Compliance and reporting burden Who’s your most profitable customer? Spiraling cost Risk hitting profitsLoss of revenue
- 19. Case in point: all-in-one corporate banking demands © Misys 224 May 2016 American Finance Airlines - Head Office in Sydney - Subsidiaries / Offices in London, New York, Sao Paulo, Singapore, Hong Kong, China, Tokyo • 4 Current Accounts • 1 Current Account with Overdraft • 2 Term Deposits • 3 Loan Accounts • 3 Letters of Credit Bank - Head Office in Sydney - Regional presence in Singapore, Hong Kong, and China. • Cash / Transactional Services • Trade Finance • Lending • Treasury BANK
- 20. Corporate banking complexity 3© Misys 24 May 2016 Pricing Fees Credit committee Credit analyst Credit analyst Line of business channels and sales Origination CRE LCs Guarantees Pricing platformsDB DB DB DB DB DB Credit risk systems Application processing Imaging DB DB DB DB Content Mgmt Loan booking Loan booking Credit Admin Limits mngmt Billing Treasury Treasury Data warehouses Pricing Exposure & limits reporting DB DB DB DB DB DB Bilateral loan PM Payment engine Collateral mngmt Origination C&I Invoice financing DB Investors Regulators Incomplete data Manual errors High cost Slow response/ implementation ? ? ? ? Scenario / Risk Analytics Limits mngmt DB DB DB DB DB DB On boarding DB DB DB DB Dept. Limits Cash pooling Payments Payments Swing reports DB DB Loan sales Cash Mgmnt Data warehouse Dealer desk Portals FX trading platforms DB DB Application Gather data Credit analysis Watchlists Pricing Approvals /exceptions Document prep Closing Booking/ funding Transaction servicing Gather data Risk ratings Portfolio manage- ment Ongoing Customer review Risk Manage- ment The transaction value chain Application processing Reporting DB
- 21. 4 Three key imperatives © Misys 24 May 2016 Simplify Innovate Optimize digitalization
- 22. © Misys A simpler model for efficiency, competitiveness, and long-term profit 524 May 2016 Globalisation One user experience: complete, connected, agile Data control: Global risk limits, compliance, and reporting 720° digitalization: 360° view of the client. 360° view of business
- 23. All-in-one corporate banking breaks down the silos 6© Misys 24 May 2016 Small corp Mid-size MNC Conglomerate Govt.SME Transaction Value Chain FIs All-in-One Corporate Banking Digital Corporate Channels Lending FX & MMSupply Chain TradeCash Enterprise Payments, Fees and Billing Single Customer View and Party Management Business Insight Enterprise Credit Management Integrated workflow and business process Global Limits Management Lending Cash Supply Chain Trade Treasury Core Processing Banking Ledger Global Risk and Regulatory Reporting
- 24. Case in point: all-in-one corporate banking demands © Misys 224 May 2016 American Finance Airlines - Head Office in Sydney - Subsidiaries / Offices in London, New York, Sao Paulo, Singapore, Hong Kong, China, Tokyo • 4 Current Accounts • 1 Current Account with Overdraft • 2 Term Deposits • 3 Loan Accounts • 3 Letters of Credit Bank - Head Office in Sydney - Regional presence in Singapore, Hong Kong, and China. • Cash / Transactional Services • Trade Finance • Lending • Treasury BANK
- 25. 8 How all-in-one corporate banking translates to value © Misys 24 May 2016 Harry VonStam Executive Director Corporate Lending at Bank Jon Humphreys Financial Director at American Finance Airlines Jackie Om International Trade Services Global Development, American Finance Airlines Ernie James Team Lead Syndicated Loans Agency at Bank Manages cross-product facility, including self service LC issuance and FX through unified portal Picks up customer created LC issuance and completes against a multi-product facility limit Tracks utilisation against agented multi-product facility limit and processes commitment fee Views customer facilities and group global limits in a centralized management dashboard a Enhance customer experience Reduce operational risk Swift implementation of regulations Reduce cost, increase revenue Increase ability to innovate a a aaa aaa aaa
- 26. 9 Who else benefits from all-in-one corporate banking? © Misys 24 May 2016 Bank: Corporate Sales Corporate Customer Bank: Operations Corporate and commercial customers optimize the entire working capital mix, tailored to their needs whether SME, or MNC – across lending, trade, cash/payments, and treasury/FX Consolidate simple and complex credit portfolios to a single platform with a low touch approach to servicing multiple borrowers, product and ccy facilities Deepen client relationships with integrated services, a single view of the customer, more efficient product and service delivery, and value added services and advice Bank: CxO Transformation, digitization, and innovation to boost profitability, agility, brand and growth. Lower TCO. Increase RoE. Become an “outside-in” bank.
- 27. 10 A single view of the connected corporate customer © Misys 24 May 2016
- 28. 11 Unified relationship manager dashboard © Misys 24 May 2016
- 29. 12 Treasury view across the corporate bank © Misys 24 May 2016
- 30. 13 Sales/CEO view across Corporate Bank © Misys 24 May 2016
- 31. Benefits of an all-in-one approach 14© Misys 24 May 2016 Consistent user experience Agile global operating model Integrated and modular Single customer view Tailored products, pricing and services Choice for technology adoption Optimize liquidity and profitability Operational compliance Regulatory control Simplify Innovate Optimize reduction in total IT cost 25% increase in RFP win rate 50%8x cost reduction in new client acquisition 8% reduction in cost of capital
- 32. Choice: Pre-integrated or modular. Cloud or in-house. 15© Misys 24 May 2016 FusionBanking Corporate Channels FusionBanking Trade Innovation FusionBanking Equation Trade Cash FusionCapital Opics FusionRisk Customer ERP More accurate risk insight to allow optimum capital allocation Expand corporate customer base by > 65% Phone transactions reduced to less than 10% Supply Chain FusionBanking Corporate Channels FusionCapital Opics Trade Treasury FusionBanking Trade Innovation Doubled revenues Cloud deployment FusionBanking Corporate Channels FusionBanking Trade Innovation Core Banking Trade Cash Increase transaction volumes by 50% Reduce paper-based processes by 70% FusionBanking Loan IQ 20-30% reduction in operations headcount from improved efficiency 25% IT cost reductions FusionBanking Trade Innovation Trade Lending FusionBanking Corporate Channels Global EU based bank operating across 29 countries
- 33. 16 Three key imperatives © Misys 24 May 2016 Simplify Innovate Optimize digitalization
- 34. Your strategic partner and a global baseline for corporate banking success 17© Misys 24 May 2016 ~10%of daily Trade Finance The leader in multiple sectors Global footprint of the top 50 global corporate banks 33 of global syndicated lending business75%of the top 50 in Europe35 Innovator in Transaction Services with Barclays ‘Best-in-Class’ fo ‘Best in class’ Corporate Client Service Model Bank for Cash and Trade: HBL and Misys “The ability to provide customers with a common digital solution for trade finance and cash management will be a powerful sales tool to attract more business and deepen our existing client relationships. We have the agility to introduce game-changing products and solutions more rapidly, and our strategic partnership with Misys gives us a corporate banking infrastructure that is integrated, automated, and controlled from an efficiency and risk perspective.” Fareed Hosain, Chief Information Officer, HBL