EY Wholesale Transaction Banking & Credit Operations Surveys yielded several key insights and four critical themes.
An industry in transition
The wholesale banking industry is experiencing a period of significant change as banks are finally shifting their focus back to growth. In doing so, many are placing an increased emphasis on client experience and operational efficiency. As banks are outlining their change agenda, it’s become common to ask how they are performing against their peers across key priorities and operational metrics related to wholesale transaction banking and wholesale credit operations.
The two new surveys conducted by Ernst & Young LLP (EY) are designed to determine baselines and leading practices in these areas. The following report provides a summary of both raw data collected and EY’s point-of-view on the results.
You can download the Executive Summary of the surveys here.
EY’s analysis of this comprehensive data set yielded several key insights and four critical themes.
1. Wholesale banks are playing catch up in the digital revolution.
For the past several years, wholesale banks’ capital investments were largely driven by regulatory requirements and as a result their client experience and operational efficiency were neglected. The Survey data illustrates that processes are highly manual and time consuming in both transaction banking and credit operations.
As the spending on regulatory initiatives begins to wane, banks are now re-focusing on efficient growth underpinned by client experience and technologies that focus on dramatically streamlining operations and client/bank interactions. Banks are beginning to allocate the funding to invest in technology innovation initiatives. This is illustrated by the responses to our questions that revolved around highest priority technology initiatives and functions.
However, it is also clear from the operational metrics analyzed that the benefits associated with those initiatives have yet to be realized, as evidenced by almost every statistic around cycle time and by the nature of complaints received from clients.