Banks provide a broad range of products and services to their corporate clients. As with any successful business relationships, as times change so must the offering to meet the current demand. Below are three of the top trends in the transaction banking world today and how banks are approaching them.
1. Stricter Regulations
Over the last few years there have been new, stricter regulations that have been issued primarily in the United States and Europe. A few of the key regulation changes include:
- Tighter requirements for anti-money laundering
- Basel III standard on banking
- Single Euro Payments Area (SEPA)
- Payment Services Directive
These and other regulations may add more red tape which will make certain banking processes more complex, however they can also prove to be beneficial. For example, as banks become experts in the regulatory requirements they will be seen as stronger partners, therefore strengthening the bank-business relationship. For that reason, many banks are investing time and resources into learning and mastering all aspects of these and other budding regulations.
2. Increased Digital Impact
In an increasingly technological world, digitization is essential. Banks all over have realized this and have taken to increasing their digital presence and capabilities. Many banks provide customer support, products and pricing, relationship management and other services online. By digitizing certain client services, they have made themselves an intricate part of their client´s operations.
3. Globalization Efforts
Along with bank-corporate interaction, technological advances also continue open up the global market in a new way. Corporates are now looking to have a global reach more than ever. As such, the need for global banking services has grown immensely. Companies, especially those within Asia, are expected to see huge growths in the coming years. These businesses will require more banking services as well as assistance with staying in compliance with all set and emerging regulations. Banks realize this and are working to be able to provide those services and more.
These three trends are just a few of the many trends that are emerging due to the evolution of the transaction banking world. Banks must stay ahead of these trends and provide exceptional and useful services to stay relevant to their corporate clients. On the other hand, corporates should also stay abreast of the current and future state of the banking world to make knowledgeable decisions concerning their financial solutions. If the two work together correctly, companies will be positioned to thrive in their respective business arenas.