For those who still think that transaction banking provides commercial banking products and services for both corporates and financial institutions using basic operations need to look no further than the report from SIBOS, the Swift International Banking Operations Seminar, one of the largest annual conference and networking events for the financial industry that was recently held in Singapore.
This is one of the most reliable sources of information if you would like to dig deeper into the financial world and what changes will be in the industry. Below we have prepared 6 trends for you, that were presented at the conference.
Thanks to digitalization and new technologies, financial industry is going through big changes. A lot of tech companies are arising in the market and moving forward customers’ expectations. It causes discussions on every seminar, conference and even summit, including SIBOS. Technology was most talked about topic there.
Despite the popularity of the topic and the emergence of cloud based technology, Mobile, apps and real time connectivity, banks still trying to make sense how to use it for their customers and implement into the business.
However, there should not be any doubts. Banks should collaborate with new fintech companies in order to keep an eye on customers’ needs and fulfill it successfully.
The correspondent banking model is widely used and, according to SIBOS, will be rising respectively in 2016. Many banks using this system to reach as much customers as it is possible. Partnership with the international banks allows to share resources and infrastructure for the expansion on the new markets and engaging new customers. Correspondent banks are complement each other’s products and services that brings mutually beneficial cooperation.
In 2016 the focus in the financial system will be on the diversification, increasing number of regional brunches etc. Since the globalization reflects on each end every company it is not a surprise that more corporations expand the business to the other countries. And for this reason they are looking for the banking structures that are strong in the markets they are growing in. Thus, they do not rely on one bank, preferring to diversify risk, consistency and increase local flexibility. Regional banks provides them all of that.
ASEAN is the fast growing region where is nowadays concentrated most of the banks and customers interests. After China and Japan had shown rapid economic and financial increase, investors started keeping their eye on the region at all and benefits it could bring. Especially it is on a big importance for banks, because of:
- More harmonized banking regulations across ASEAN as a result of bilateral treaties;
- an opportunity for companies to bypass the $US for more liquid, direct ASEAN foreign currency pairs.
Off course, it will not happen in a minute, however now is time for banks and corporates to combine powers for the future benefits.
All the participant agreed on the fact that customers require more data analytics, that should be structured and presented in an comprehensible format. Therefore, customers would be able to use it for improving business efficiency.
There is also a demand for peer group metrics which can be maximised through centralised partnerships such as SWIFT KYC. However the opportunity will only grow only if banks are prepared to put their data in to the register without concern for competition.
The last but not the least trend that will dominate next year is ability to handle customer’s expectation. In the world of continues changes the big corporations as well as individual customers are relying on banks as on a trustworthy advisor. Therefore, it highly important for them to take an action and ensure clients that they are compliant.
As this year draws to a close and you starts determining what initiatives will be valuable investments in 2016, we believe this trends will help you to go in the right direction.