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Digitisation in Corporate Banking – what are the next steps?
MisysMcKinsey & Company
© Misys 2 May 2023
Alex KwiatkowskiSenior Marketing StrategistMisys
Tim TylerGlobal Product ManagerMisys
Dr. Stephanie EckermannPrincipalMcKinsey & Company
Dr. Markus RöhrigAssociate PrincipalMcKinsey & Company
The road to corporate banking digitisation – trends and drivers
Alex KwiatkowskiSenior Marketing Strategist, Banking and Digital Channels, Misys
© Misys 2 May 2023
The transformation of corporate banking
4
5© Misys 2 May 2023
The transformative effects of digital
“The use of digital technologies to change a business model and provide new revenue and value-producing opportunities”
© Misys 2015 2 May 2023
Sizing – and seizing – the opportunity in corporate banking
2016: $4.6bn2017: $4.9bn2018: $5.3bn
CAGR: 7.2%Over 50 per cent of institutions in a poll of corporate bankers conducted in October 2014 indicated they intended to invest over €30m in digital over the next 3 yearsSource: Capgemini
2015: $4.3bn
Source: IDC
7© Misys 2 May 2023
Digitalise or disappear
65%
Source: Aite Group
of corporations feel banks don’t
understand their needs
54% of institutions have less than 45% of their corporate banking products digitally enabled.
CIOs and business leaders must raise digital corporate banking strategy creation from the lines of business (LOBs) and channels to the CIO level. Gartner
Source: McKinsey – Realising the digital potential of corporate banking
20% Only 20% have a digital strategy in corporate banking
8© Misys 2 May 2023
Satisfying objectives of corporate customers
Working Capital
Raise Finance
Manage Cash &
Payments
InternationalTrade
Protect The Business
Asset finance
Corporate lending
Supplier finance
Working capital finance
Guarantees & indemnities
Letters of credit
Trade finance
Trade loans
Cash pooling
Liquidity management
Payments
Collections
Exchange rate risk
Interest rate risk
Counterparty risk
9© Misys 2 May 2023
Overcoming the obstacles
Information islands, duplicate and manual processes for pricing, onboarding and delivering products and poor data aggregation means revenue leakage, high cost and loss of market share
Struggle to scale the business or respond quickly to clients’ global demands due to legacy operations, fragmented channels and cost pressures
Regulatory IT spend put pressure on margin and innovation. Banks are playing catch up, focusing on cost, boosting sales enablement and enhancing service
Process efficiency for insight and agile service
Cost and scale - barriers to business expansion
Remaining relevant in a digitised world
10© Misys 2014 2 May 2023
Understanding the digital priorities of corporate banks
11© Misys 2015 2 May 2023
Where have banks digitised to date?
Digitise the enterprise
Tim TylerGlobal Product Manager, Commercial Banking Channels, Misys
13© Misys 2015 2 May 2023
Digitisation and the business
$Retail and Digital Innovation Process industrialisation
Growing mid-market
MNCsRetailBank client segment
Business complexity
Perceived importance of relationship value
Transaction Commoditisation
Margin Pressure
14© Misys 2015 2 May 2023
Globalisation
Banks have built multiple portals but largely failed on digital strategy
Inconsistent digital capabilities in product silos… …or focused on single sign-on, but not single platform
LCs Standbys EU Asia Factoring AP Finance
Non-bank
FX Loan access DataBPM BPM Data BPM Data BPM Data
15© Misys 2015 2 May 2023
A threat to every part of the corporate banking business
Spiralling costs and tighter margins
Goodbye growth Sales inefficiency; lost revenue
Losing business to the competition
Rising cost of maintaining multiple portals – software and infrastructure stack.
Rising cost of servicing transactions e.g. manual loan servicing or an FX dealer
Inefficient operations to scale, service or follow clients to new markets
Poor x-business integration - poor cross sell
Reactive to client demand not proactive
RM focus on admin not relationship sales
Loss of share in lending and supply chain to digitised competitors
Can’t analyse across the business to optimise profit
Failure to capture small to mid-market opportunities
Less strategic, transactional relationships.Rising cost of on-boarding
Slow innovation cycle and product delivery for clients
© Misys 2015 2 May 2023
Digitalisation can enable banks to capture the opportunity
Agility to grow, service and connect
Improve efficiency, cost, and UX
Win with value added services
STP as standard
Meet the demands of the digitalised corporate
Reduce errors, cost and time in manual processing.
Right data, right place, right time
Client mobility to deliver value add
Ease onboarding for clients and counterparties
Consistency of service
Become the central hub for client and network connectivity
Significantly boost transaction volumes and fee generation
A 360 view of client and counterparties
Ability to be more proactive and deliver timely, relationship based service
Aggregated data and common enterprise processes
Data insight into relationship value
17© Misys 2014 2 May 2023
The path to success?
Easy to launch Difficult to maintain control of direction Back to earth with a bump
18© Misys 2014 2 May 2023
Your corporate customers’ perception
Globalisation
Banks can digitise the entire corporate value chain to balance cost and growth
Single, globally consistent, multi-channel platform for one view across products and services – for bank and customer
Enterprise efficiency driven by a common platform for digitisation
Client self service and frictionless transactions from sales to service
© Misys 2015 2 May 2023
Complete and connected - integrated from sales to settlement
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Bank integrationTrade finance, cash management, loan servicing, treasury and core banking
Collaboration> Email and SMS> Company/ counterparty/ Bank
task management> Documentation> Audit trail
Relationship services> Web marketing> User specific
dashboards> Automated
reports
Security> 2FA/OTP> Single-sign on
Network services> Multi-bank> SWIFT> ISO20022> Payments and
messaging
Integration> SOA> JEE> Misys interfaces> 3rd party
interfaces
Value added services> Calendar> Alerts> Content
management> Templates
Multi-channelBrowser Mobile ERPFile services
Common Services Platform
Localisation> Multi-language> Multi-entity
branding> Software
Development Kit
Cross business workflow> Data aggregation> Onboarding> Authorisations> Approvals> Authentication
Business applications
21© Misys 2015 2 May 2023
Digitisation is more than channel
Message Integration
API Integration
ChannelsDigitisation
Source: Gartner
Standardisation using non-proprietary formats (e.g.
ISO20022) and adoption of BPO
Increasing interest in the Open Banking concept,
demonstrated by Deutsche Bank’s Autobahn
Customers are expecting the same experience across all banking services and all channels.
22© Misys 2015 2 May 2023
Digitisation is more than channel
Message Integration
API Integration
ChannelsDigitisation
Source: Gartner
Standardisation using non-proprietary formats (e.g.
ISO20022) and adoption of BPO
Increasing interest in the Open Banking concept,
demonstrated by Deutsche Bank’s Autobahn
Customers are expecting the same experience across all banking services and all channels.
23© Misys 2015 2 May 2023
More than front to back
720°Customers
Partners AppProviders
Bank FutureTechnology
Digitise the enterprise
24© Misys 2015 2 May 2023
• Accelerate your digital strategy
• Maximise revenue and efficiency with end-to-end digitisation in global corporate banking
• Deliver and exceed your corporate clients’ expectations
Go digital with FusionBanking Corporate
For more information contact:[email protected]
FusionBanking Corporate is a componentised platform for step-by-step digitisation with unrivalled depth and multi-channel coverage for trade, supply chain, cash, treasury and lending
FusionBanking Corporate facts
US bank doubles revenues with unified online channels for trade and FX
Tier 1 Bank in Asia expanded across 14 countries and grew transaction banking revenues by
FusionBanking Corporate Channels. helps clients to increase their win rate for large corporate RFPs
50% FusionBanking Corporate Channels helped customers increase volumes by 40%
or more
100%
89%
© Misys 2015 2 May 2023
Industry recognition
CEB TowerGroup: Trade finance applicationsMisys: ‘Best-in-Class’ solution for corporate client service and transaction capabilities
Global Banking Platform Deals, April 2015Misys: Major Global Player: 101 banking deals
Banking Technology Awards 2013Misys: Best Payments Product or Service
Global Finance: The InnovatorsMisys: Named an innovator in Transaction Services for deployment at Barclays
Trade Finance MagazineMisys: Best software for trade and supply chain finance
Trade and Forfaiting Review 2015Misys: Best vendor for trade services
Global Trade ReviewMisys: Leader in Trade. Best software provider.
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Tim TylerGlobal Product Manager, Commercial Channels
