Nearly 80 per cent of corporate banks in India are forecast to run their trade finance and treasury workloads on Cloud by 2024, said a new IDC report on Friday.
By 2023, to counter the uncertainty of the pandemic, 60 per cent of corporate banks will be revisiting credit scoring models and prioritising an open data strategy to improve loan portfolio health, according to the report.
Compared with developed economies, India’s corporate banking sector is still in its nascent stage in terms of product and service offerings.
However, this is being tested on twin counts of increasing digitalisation of the Indian economy and globalisation of Indian companies, which are bringing in rapid sophistication in operations and engagement.
“In India, corporate banking has remained undelivered during the last couple of years, but going forward, the scenario might change as the threat of the Covid-19 pandemic dwindles and the prospect of India playing a key role in the revival of global supply chain environments gain momentum,” said Ganesh Vasudevan, Research Director, IDC Financial Insights Asia/Pacific.
The pandemic has forced CFO focus on liquidity. In response, 55 per cent of corporate banks will invest in supporting predictive liquidity management and 60 per cent will upgrade data and connectivity capabilities by 2024 in the country.
“Traditional brick-and-mortar businesses are increasingly moving to B2B sales online, and corporates expect their bankers to understand the workflow to provide value-added solutions like seamless counter-party onboarding, provide a credit assessment, and finalize the settlement terms without using the traditional invoicing and collection process,” Vasudevan explained.
With the prospect of a sharp recovery in economic activities in 2021, corporate banking in India is expected to witness a significant evolution in the path to recovery as banks redesign their corporate customer experience (CX) on a digitalised scale by leveraging technology and innovations.