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Amritsar, NFA Post: With the prospect of a sharp recovery in economic activities in 2021, corporate banking in India is expected to witness a significant evolution in the path to recovery as banks redesign their corporate customer experience on a digitalised scale by leveraging technology and innovations, a report published by International Data Corporation (IDC) said.

The report named “IDC FutureScape: Corporate Banking Worldwide 2021 Predictions — India Implications that contextualizes Corporate Banking predictions for 2021” said that compared with developed economies, India’s corporate banking sector is still in its nascent stage in terms of product and service offerings.

However, this is being tested on two counts of increasing digitalisation of the Indian economy and globalisation of Indian companies, which are bringing in rapid sophistication in operations and engagement, it said.

“In India, corporate banking has remained undelivered during the last couple of years, but going forward, the scenario might change as the threat of the COVID-19 pandemic dwindles and the prospect of India playing a key role in the revival of global supply chain environments gain momentum,” Ganesh Vasudevan, Research Director, IDC Financial Insights Asia/Pacific said.

Corporates are increasingly relying upon their bankers to help them with their working capital contingencies while supporting them in seizing the emerging opportunities, the report said.

Under these circumstances, banks have the unique opportunity to respond to the corporates’ growing need for real-time information flow, financial advice, and funding support, it added.

“Collaboration is the order of the day, with corporates pursuing value and efficiency from their banks. Traditional brick-and-mortar businesses are increasingly moving to B2B sales online, and corporates expect their bankers to understand the workflow to provide value-added solutions like seamless counterparty onboarding, provide a credit assessment, and finalise the settlement terms without using the traditional invoicing and collection process,” Vasudevan said.

Some of the key corporate banking predictions that will impact the IT industry and both technology buyers and suppliers in India are:

Predictive Liquidity Forecasting: COVID-19 has forced CFOs to focus on liquidity. In response, 55% of corporate banks will invest in supporting predictive liquidity management and 60% will upgrade data and connectivity capabilities by 2024.

Cloud-Based Corporate Banking: By 2024, 80% of trade finance and treasury workloads will be running as SaaS or on PaaS architectures.

Open Credit Decisioning: By 2023, to counter the uncertainty of the pandemic, 60% of corporate banks will be revisiting credit scoring models and prioritising an open data strategy to improve loan portfolio health.

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