Over a third of corporate banks worldwide cite a lack of real-time data and manual processes as their biggest operational challenges, according to a survey by finance software specialist Temenos and analyst firm Ovum.
The Corporate Treasurers survey, which canvassed the opinions of 200 corporate treasurers worldwide, found that banks want to access real-time data and analytics to improve their decision making and organisational efficiency.
Temenos’ survey also indicated that corporate treasures are focused on four key areas: cash and liquidity, forecasting and analytics, risk and compliance and cost and efficiency.
Almost a third of respondents cited liquidity management as their greatest priority over the next 18 months, while 17% will focus on reducing foreign currency exchange risk, 16% will concentrate on developing more accurate forecasting and 14% aim to gain a complete overview of cash positions.
Meanwhile, 75% of corporate banks in two regions are exploring using blockchain to reduce their trading risks. A high proportion of those surveyed from the UK and mainland Europe believe that at least some banking activities will be moved out of the UK following Brexit.
“Corporate treasurers face an increasingly complex and challenging operating environment, one that is creating a clear need for greater access to real-time account information and more sophisticated forecasting services,” said Kieran Hines, practice leader for financial services technology at Ovum. “At the same time, it is clear that treasurers are also looking for financial services partners who can deliver products and services tailored to the specific needs of their businesses. For corporate banks, addressing these challenges presents a significant opportunity to drive growth and build deeper client relationships.”
Temenos and Ovum discussed highlights of the report during its Corporate Treasurers Survey Open Theatre session at Sibos, held 26-29 September in Geneva.
“For corporate banks we have the Corporate Suite, an end-to-end solution that encompasses core banking, analytics, digital channels and payments,” said Ben Robinson, Temenos’ chief marketing officer, speaking at Sibos (pictured). “The idea is that we provide, via one platform, the real-time information and analytics banks need to derive customer intimacy at scale. This solution can be deployed on the cloud and we also have APIs so banks can get access to products and services from third parties.”
Highlighting the role of the cloud in helping corporate banks overcome operational challenges, Robinson added: “Together with Microsoft, we were the first people to put core banking in the cloud back in 2011 with group of Mexican microfinance institutions. Last year we started to put real regulated banks into the public cloud using the Microsoft Azure platform, and I have to say, this is getting a huge amount of traction, particularly with smaller and newer banks, and also corporate banks.”
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