International Data Corporation (IDC) has published the IDC FutureScape: Corporate Banking Worldwide 2021 Predictions — India Implications that contextualizes Corporate Banking predictions for 2021.
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 digitalized scale by leveraging technology and innovations.
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 digitalization of the Indian economy and globalization 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,” says Ganesh Vasudevan, Research Director, IDC Financial Insights Asia/Pacific.
Corporates are increasingly relying upon their bankers to help them with their working capital contingencies while supporting them in seizing the emerging opportunities. Under these circumstances, banks have the unique opportunity to respond to the corporates’ growing need for real-time information flow, financial advice, and funding support.
“Collaboration is the order of the day, with corporates pursuing value and efficiency from their banks. 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 counterparty onboarding, provide a credit assessment, and finalize the settlement terms without using the traditional invoicing and collection process,” adds Vasudevan.
Some of the key corporate banking predictions that will impact the IT industry and both technology buyers and suppliers in India are:
#1 Predictive Liquidity Forecasting: COVID-19 forced CFO focus on liquidity. In response, 55% of corporate banks will invest in supporting predictive liquidity management and 60% will upgrade data and connectivity capabilities by 2024.
#4 Cloud-Based Corporate Banking: By 2024, 80% of trade finance and treasury workloads will be running as SaaS or on PaaS architectures.
#9 Open Credit Decisioning: By 2023, to counter the uncertainty of the pandemic, 60% of corporate banks will be revisiting credit scoring models and prioritizing an open data strategy to improve loan portfolio health.
These strategic predictions for the India market are presented in full in the following report: IDC FutureScape: Worldwide Corporate Banking 2021 Predictions — India Implications (# AP47238421).
Each year, IDC releases its Top Predictions through its IDC FutureScape reports to give a crystal ball view of what is ahead for the rapidly changing ICT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years. For more information about the upcoming IDC FutureScape reports.
The Big Shifts in Banking, Insurance, and Capital Markets of Asia/Pacific financial services institutions for 2021 will be one of the topics to be discussed at the 2021 IDC Asian Financial Services Congress. With the threat of COVID-19 still lingering in the world, the event will be held online in IDC Arena – our very own groundbreaking, intuitive, and data-driven content hub built for maximum engagement. Thought-leadership sessions for AFSC 2021 featuring IDC Financial Insights Asia/Pacific’s analysts will be released starting March 24 – 26.
IDC Financial Insights will unveil its latest research on financial services and insurance industry and provide engaging discussions around Crisis and Recovery Analytics, The Regionalization of China’s FinTech, Next-Generation Digital Core, and many more. Culminating the event will be the awarding of the Banker / Insurer / Challenger of the year in Asia/Pacific*.
