2) Improved insights
The ability to provide accurate, up-to-date information to corporate treasury clients has shifted from a “nice-to-have” to a “must-have” capability in recent years. The many areas where treasury functions can leverage improved insights for better strategic decision-making include hedging interest rate risk, foreign exchange risk and better working capital management. Digital tools help equip corporate treasury clients with necessary information on cash positions and risk exposures, as well as supporting analysis to make informed decisions rapidly.
However, banks need a cohesive data management strategy and supporting operating model to provide the information and insights clients expect. Without a sound data management framework, there is a risk that poor data could be used in the analytical models, compromising the results and insights.
Governance strategies are another consideration for banks when providing their corporate treasury clients with improved data. That is especially true when they provide data from other clients. In such cases, banks must consult their internal compliance and risk teams so that the appropriate precautions and controls are in place prior to distributing data.
3) Enhanced client experience
Corporate treasurers increasingly lean on their banking partners for value-adding functionality that enables them to execute the strategic agenda. Typically, that means an omni-channel experience, with multiple avenues to connect and transact. For routine activities, corporate treasurers typically prefer online self-service capabilities and mobile apps. For more tailored and complex activities, corporate treasurers may want access to their relationship manager while on the go.
Banks should look to advanced technology, such as AI and machine learning, to master the channel mix and enhance the client experience. For example, recent advancements have made chatbots a viable option for corporate treasurers to transact with their banking partners.
As corporate, commercial and SME banks continue to invest in improving the quality and number of channel offerings available to their clients, they must consider client tendencies based on size, industry, and maturity.
The banks that can develop and enhance their channel offerings should design these enhancements with the overall goal of establishing a 360-degree view of all of their clients. Advanced APIs will continue to play a big role by enabling banks to communicate with their clients in real time. By integrating with their clients’ ERP and TM systems, they can anticipate short- and medium-term needs and recommend solutions proactively.