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Next-gen banking experiences for Asian Corporates in 2022

    A new normal in corporate digital experiences in Asia

    The pandemic has shown how some corporates have survived and re-aligned themselves to the new world order by either bringing newer business models into play, growing in a digital-first ecosystem, or adopting a remote workforce. As a result, ADB forecasts a steady economic growth of 5.3% through 2022 for developing Asia and a rebound as economies return to a post-pandemic normal.

    The banking landscape and competition for SME & Corporate business in Asia will also undergo a radical shift with many economies and central banks which have granted or are about to grant digital banking licenses.  With the emergence of bilateral real-time payment arrangements across countries,  Asia is setting itself to be an innovation hub for cash management. However, as per a report by Morgan Stanley, the pandemic has seen a spike in digital channel utilization in Asian Corporates (53% reporting an increase), yet 60% of corporate clients remained dissatisfied with their bank’s digital offering.

    It is no wonder that corporates and SMEs in Asia expect more value from their banks, demanding more real-time access to data, proactive and timely insights, and advisory to better manage their funds. Digital offerings are the need of the hour, and they will expect corporate banks to remain trusted advisors, providing transparency at every step. Therefore, deriving greater value through the open banking ecosystem and delivering differentiated services to corporates and SMEs will be vital.

    Key success factors for Asian Corporate Banking in 2022

    Key Success Factors that will drive better collaboration between corporate banks and corporations as well as elevate and deepen relationships include a) Bringing competitive differentiation via APIs and enhanced connectivity, b) Driving up efficiency for corporates, reducing their time to market, and cost of acquisition c) Transparency of relationship and real-time access to data.

    What this means for the corporate banks is that they have to re-imagine how they are enabling services to their corporate clients. Corporate digital experiences have also traditionally lagged retail experiences the world over, and there is an urgent need for a revamp. There is an urgent need for a paradigm shift in how corporate banks engage with corporates and a re-look at their corporate banking model in a digital-first economy.

    Three critical considerations for a next-generation corporate digital experience  

    Let’s look at three critical considerations in next-generation digital corporate banking experiences for enabling this paradigm shift in engagement:

    • Immersive, Personalized, & Frictionless

    Banks need to offer experiences that are truly immersive, intuitive, and contextual to the persona of the corporate or SME, thereby delivering data, insights, and experiences that are relevant to the persona.

    • Open & Embedded  

    Going beyond the traditional touchpoints and bringing an API-first environment allows corporates to leverage the efficiencies of a connected ecosystem. While Open Banking is the first step in the journey, according to the 2020 Global Treasurer’s Banking Transaction Survey, more than 35% of corporates are looking at corporate banks to add value by embedding financial products into the corporate business services.

    •   Transparent & Relationship Driven

    As more services shift digital, corporates will demand greater transparency and look towards corporate banks bringing more personalized products, and a relationship pricing construct drives service bundle offerings.

    As per the  Global Treasurer’s Banking Transaction Survey, more than 39% of corporates felt improved user & customer journeys would enhance corporate banking services. In comparison, 60.9% felt a single view across the company’s balances was critical. Of course, every corporate bank’s digitization journey will be unique to the corporate bank’s current state and operating environment. However, one thing is for sure, digitization & improved experiences will unlock much deeper relationships, drive up newer business models for corporate banks and improve processing efficiencies, thereby lowering the cost to serve.

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