2 TREASURY & RISK SEPTEMBER 2017 SPECIAL REPORT
As banks seek to develop new business opportunities and maintain relationships with corporate clients, while answering the industry mandate of moving toward real-time payments, technology has become the driving strategy. The tactics: to improve customer
interfaces while developing new capabilities that utilize artificial intelligence, the blockchain, and
application programming interfaces (APIs).
The stakes are high. Corporate customer
satisfaction is at a nadir, according to the
results of the 2016 Transaction Banking Survey
published by GTNews in connection with
CGI. The survey found that just 38 percent of
respondents planned to stay with their primary
bank. That’s down substantially from a year
earlier, when 52 percent of respondents said
they would remain with their bank. Why?
According to the survey, the desire for better
digital products and services is one reason
corporate banking customers are jumping ship.
“There is a distinct difference between what
corporates want and what banks are giving
them,” said Jerry Norton, head of financial
services strategy at CGI. “That is the message
we’re hearing. Corporates are saying ‘We want
this,’ ‘We want that,’ but they’re not getting it
from the corporate banking sector.”
Corporate treasurers told GTNews that they
planned to look around for better services,
particularly in the area of cash management,
with 80 percent of respondents indicating they
would be reviewing their banking relationships
as a result of dissatisfaction in that area.
Given pressures from customers and
regulators, as well as the constant threat of
cybersecurity breaches, banks are facing a
perfect storm, Norton said. “That is why banks
are not satisfying some of their corporate
clients. And the longer they go on in this
way, the more potential there is to lose out to
One example of an entity that has already
disrupted the banking industry is Amazon,
which is providing loans to smaller businesses.
For their part, large corporates may be able to
bypass banks not only by issuing their own
debt, but also by developing in-house solutions
such as payment factories.
Harnessing Banking Data
In response to this new competitive
landscape, banks are striving to think two or
three steps beyond the offerings they currently