December 12, 2018 | Written by: Michel Jacobs
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A client-centric approach to banking
In the $509 billion day-to-day corporate banking market, a combination of tightening margins, rising expectations around service quality, incursions from fintechs, and increasing focus on competition from regulators is creating a new business imperative for digital transformation. To foster long-term loyalty and guard against the threat of disruptive entrants, banks are under pressure to re-imagine their processes and put the client experience at the center.
A client-centric approach not only strengthens customer loyalty and retention, it also encourages deeper engagement, which can help banks create revenue-driving opportunities. These opportunities can be extremely valuable, and according to research by McKinsey, the total income banks receive from clients who use modern digital cash-management services is 3.2 times higher than from clients who don’t.
Client-centric services require banks to move away from the transactional client interactions of the past and embrace contextual banking. The contextual banking approach employs machine learning and predictive analytics to provide personalized, context-aware recommendations to clients. By anticipating the motivation behind each client journey, contextual services enable banks to guide clients to their goals faster. These services also empower banks to recommend products and services that clients might not otherwise have considered—driving incremental revenues.
Embracing contextual banking
For banks taking their first steps towards contextual banking, there’s no need to go it alone. Intellect Global Transaction Banking (iGTB), building on experience gained by supplying over 80 of the world’s top transaction banks, has created a cash and liquidity portal with a full backend that enables banks to roll out the required capabilities quickly and cost-effectively. Built on the industry-leading security, availability, and scalability of the IBM® Cloud™, Contextual Banking Experience (CBX) from iGTB is a PSD2-ready, API-first, and microservices-based corporate banking platform.
CBX uses predictive analytics and machine learning on a microservices architecture to suggest relevant actions and offers based on contextual business data—deepening and strengthening the client relationship. By identifying patterns of transactions, CBX can proactively alert corporate clients to potential issues and recommend ways to resolve them. For example, it can deliver real-time modeling of what-if scenarios and alerts to manage forecasts and enable early detection of funding shortfalls, exposures, and trapped liquidity.
Cutting time to value
With the IBM Cloud, banks can deploy CBX Cash and Liquidity management wherever it makes sense—whether that’s a public, private, or hybrid cloud. And because 97 percent of the world’s largest banks use IBM solutions to run their systems, banks gain peace of mind that their data is in safe hands.
IBM Cloud has the security-rich, industry-leading infrastructure to drive big-data workloads. The public cloud model eliminates the need for internal IT teams to manage on-premise infrastructure—freeing them to focus on value-added development activities. And with databases that can scale automatically to multi-petabyte sizes, banks have practically unlimited headroom as their services grow.
Clients that are unable to store their data on the public cloud can still benefit from the IBM Cloud platform. With an on-premises deployment of CBX powered by IBM Cloud Private, banks can start small and scale seamlessly on x86-processor-based systems. With this “bank-in-a-box” solution, banks gain the freedom and flexibility to get started with contextual services while complying with regulatory requirements.
To learn more about how IBM and iGTB are driving transformation in the corporate banking industry, click here.