IDC Reveals India Corporate Banking Predictions for 2022 and Onwards
By CEOInsights Team, 0
“With the stress on economy receding, as indicated by surging Index of Industrial Production (IIP) and Goods and Services Tax (GST) collections, corporate banking is poised to gain momentum in India in the immediate future. Traditionally the corporate banking space in India has been dominated by global banks, however large domestic banks are increasingly gaining market share with aggressive investments in technological and operational capabilities, narrowing the gap with their global competitors", Ganesh Vasudevan, Research Director, IDC Financial Insights.
Some of the key corporate banking predictions that will impact the technology buyers and IT industry in India are:
Prediction #4: AI in Payments: By 2025, 40 percent of payments will be optimized using AI-derived routing models. Transaction banking services in particular will
Prediction #6:CBDC Impact in Cash Management: With CBDC rollouts gaining momentum, by 2025 more than 15 percent of tier I corporate banks will offer their clients integrated solutions to unlock liquidity from both traditional and digital assets. With CBDC scheduled to be introduced in FY 2022-23, banks will have to gear up for the changes. They need to evaluate the existing workflow and data structure to identify the processes and systems that require adjustments to support CBDC adoption. Also factor in infrastructural requirement to support custodial and depository services for CBDCs with combination of centralized relational database management systems and distributed ledger technology.
Declining net interest margins on corporate lending is further adding pressure on non lending banking businesses like transaction Services to broaden the revenue base from corporate banking
Prediction #10: Connectivity Platforms:35 percent of corporate banks will platformize connectivity by 2023 to deal with the growing channel fragmentation. As an added benefit this will be the basis for actionable, proactive alerts and data services. Increasingly diverse and fragmented channel offerings and the associated complexity will force corporate banks to develop platform capabilities to ensure consistent, scalable, and standardized data exchange across all interfaces. A connectivity platform can help to drive innovation, help financial institutions to get the most out of the present and emerging interfaces, and ensure cost efficiency, quality, and reliability of all connectivity interfaces.
These predictions are discussed in greater detail in the new IDC FutureScape report, IDC FutureScape: Worldwide Corporate Banking 2022 Predictions India Implications (Doc #AP48732022). 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.