The uncertainty of 2020 is setting the global tone for the immediate future in the financial services industry. So it is no surprise banks are laser-focused on business resilience, emphasizing both financial and operational risks. The need to adapt quickly to new normal conditions through virtual customer engagement is clear. Customer centricity continues to drive commercial banks’ solution designs. And, the pandemic compelled products that deliver immediate client value ‒ quick digital onboarding, seamless lending, and support for small and medium-sized enterprises (SMEs). The onus is now on banks to go to market more quickly, which requires the implementation of intelligent processes and integrating corporates’ enterprise resource planning (ERP) systems with banking workflows. To achieve go-to-market agility, banks across the globe are investing in and collaborating with FinTechs. Many of these partnerships are focused on boosting digital lending and providing seamless support to anxious small-business clients in need of assurance. With newfound impetus for FinTech collaboration, commercial banks have picked up their step on the path toward OpenX. COVID-19 made it evident that survival during turbulence is manageable through collaboration with ecosystem players. Read our Top Trends in Commercial Banking 2021 report to explore the strategies banks are adapting to transform their businesses from a product-led, siloed model to an experiential and agile plan.

1. Top Trends in Commercial
Banking: 2021
November 2020
Link: https://www.capgemini.com/top-trends-in-2020/

2. 2© Capgemini 2020. All rights reserved |Commercial Banking Trends 2021 | December 2020
 FinTech investment propels digital business lending
amid the pandemic
 Banks identify new ways of doing business to
continue seamless customer support
 Value Added Services will be critical for banks
seeking to meet customer expectations
 Banks leverage Open X to create an experiential and
agile business model
 Commercial banks help clients integrate banking
within the corporate workflow
 Sparked by COVID-19 parameters, banks transform
and drive customer experience to new heights
 Banks use cognitive technologies to strengthen
credit risk management
 Incumbent banks rethink their existing business
model thanks to the arrival of tech players in the
small- and medium-enterprise segment.
Business
Resilience
Customer
Centricity
Intelligent
Processes
Go-To-Market
Agility
Open
Ecosystem
Top Trends in Commercial banking for 2021 by Capgemini

3. 3© Capgemini 2020. All rights reserved |Commercial Banking Trends 2021 | December 2020
Source: Capgemini Financial Services Analysis, 2020.
Trend 1 – Banks integrate banking applications within clients’ enterprise resource planning (ERP) systems
Benefits of
banking-ERP
systems
integration
Convenient,
secure
transactions
Real-time
data and
business
insights
Better visibility
into finances
for decision
making
Optimal use
of human
resources
Improved
standardization
and fewer errors
Top Trends in Commercial banking for 2021 by Capgemini
Integration of bank/ERP systems
enables corporations to manage
banking and payment transactions
internally without logging into multiple
platforms for different functions.
Through integration, banks can help corporate clients automate and streamline finance and treasury processes
for smoother data exchange and financial services delivery at the point of need

4. 4© Capgemini 2020. All rights reserved |Commercial Banking Trends 2021 | December 2020
Source: Capgemini Financial Services Analysis, 2020.
Trend 2 – Banks use cognitive technologies to strengthen credit risk management
Corporate clients’ uncertain credit risk evaluations during COVID-19 are driving banks
to shift quickly to cognitive technologies
Drivers of
cognitive
technologies
in credit risk
management
Improves
fraud
detection
More accurate
creditworthiness
evaluation
Less investment
compared with
manual analysis
Helps overcome
potential human
error
Reduces risk
assessment
time
Lowers
commercial
loan default
probability risk
Top Trends in Commercial banking for 2021 by Capgemini

5. 5© Capgemini 2020. All rights reserved |Commercial Banking Trends 2021 | December 2020 5© Capgemini 2020. All rights reserved |
Revamping legacy business models
through product innovation will help
commercial banks address the
evolving expectations of small- to
medium enterprises
End-to-end
digitalization
needed
Competition from
FinTechs heats up
Contactless and
swift solutions
for SMEs
SME expectations
expand
Why revamp
existing models?
Top Trends in Commercial banking for 2021 by Capgemini
Trend 3 – As FinTechs cater to SMEs, incumbents rethink their existing business models
Source: Capgemini Financial Services Analysis, 2020.

6. 6© Capgemini 2020. All rights reserved |Commercial Banking Trends 2021 | December 2020
Superior CX
Advanced
architecture
Digital Transformation/Innovation
Quicker, cost-effective and more efficient solutions
for commercial clients
Robust
ecosystem
End-to-end
digital
experience
Extended
range of
products and
services
Top Trends in Commercial banking for 2021 by Capgemini
Banks transform CX with a focus on digital
Trend 4 - Digital transformation is critical for firms seeking to enhance customer experience
Source: Capgemini Financial Services Analysis, 2020.

7. 7© Capgemini 2020. All rights reserved |Commercial Banking Trends 2021 | December 2020
What’s driving
digital lending
platforms?
Smart device
use up
Advancement
in new
technologies
Competition from
non-traditional
players
Regulatory
pressures
Increase in
financial
stimulus
Top Trends in Commercial banking for 2021 by Capgemini
Trend 5 – FinTech investment propels digital business lending amid the pandemic
Source: Capgemini Financial Services Analysis, 2020.

8. 8© Capgemini 2020. All rights reserved |Commercial Banking Trends 2021 | December 2020
Seamless
Customer Experience
Personalized
offerings to
boost customer
stickiness
New digital
touchpoints
Agility through
platformification
Top Trends in Commercial banking for 2021 by Capgemini
Trend 6 – Banks identify new ways of doing business to continue seamless customer support
Source: Capgemini Financial Services Analysis, 2020.

9. 9© Capgemini 2020. All rights reserved |Commercial Banking Trends 2021 | December 2020
One-stop
shop for
comprehensive
suite of
offerings
New revenue
streams
Boost
customer
loyalty
Integrated
ecosystem
(marketplace)
Top Trends in Commercial banking for 2021 by Capgemini
Banks need value-added services to meet the expectations of small-business clients
Trend 7 – To meet client expectations, Value Added Services will be critical for banks
Source: Capgemini Financial Services Analysis, 2020.

10. 10© Capgemini 2020. All rights reserved |Commercial Banking Trends 2021 | December 2020
Quick go-to-market at scale
Reach a wider customer base
Create customer-specific product offerings
Innovate customer communication processes
Automate back-end processes and achieve cost efficiencies
Open X
Collaboration
Top Trends in Commercial banking for 2021 by Capgemini
Commercial banks are turning to Open X to create an experiential and agile business model
Trend 8 – Open X collaboration can help banks build capabilities more quickly
Source: Capgemini Financial Services Analysis, 2020.

11. 11© Capgemini 2020. All rights reserved |Commercial Banking Trends 2021 | December 2020
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