Transforming Corporate Banking With Intelligent Technologies

Falk Rieker

The digital financial services landscape is changing fast. Facing mounting pressure from customers and competitors, banks have no choice but to transform themselves. However, I’d argue that’s not such a bad thing.

After all, the financial services industry is quickly becoming one of the prime enablers of the digital economy. It’s true that businesses and consumers expect digital experiences from their banks that rival those of retailers and other goods and services providers. Even corporate customers are demanding more efficient operations, greater connectivity, and faster delivery of innovative products.

Leading banks – along with fintechs and challenger banks – are already stepping up to meet this challenge. They recognize that embracing this change offers the best chance of realizing new competitive advantages. Bank executives who hesitate may cede their most valuable benefits and even risk the future of their companies. Which type of leader do you want to be?

Technology-driven process value

It’s clear that corporate banks need to face digital disruption head-on with strategies and technologies that help drive digitalization. I’ve written in a previous blog about the need to become an intelligent enterprise and the fundamental components of intelligent banking.

One essential part of the transformation journey is the adoption of intelligent technologies that can help optimize and extend business processes. Using the Internet of Things (IoT), artificial intelligence (AI), machine learning (ML), blockchain, and advanced analytics, banks can transform into event-driven businesses that automate repetitive tasks and enable employees to focus on higher-value tasks. They can also invent new business models and revenue streams by monetizing data-driven capabilities and applying core competencies in new ways.

Here are some examples of how intelligent technologies can optimize commercial banking practices.

  • Service ticket intelligence solutions can use ML technology to efficiently process inbound social media posts, emails, and other channel interactions. These solutions can also automatically determine classifications, routing, and responses.
  • Customer retention solutions can help banks anticipate customer behaviors, such as account closures and credit card cancellations, with instant insight into transactional data and digital interaction points.
  • Conversational customer experience bots can provide a humanized way for customers to interact with the bank, improving satisfaction.
  • Predictive and deep analytics tools can gain insight from structured and unstructured data, helping banks anticipate customer behavior, respond to their needs, and predict the next-best step or product offer.
  • Reconciliation automates manual tasks to reduce error rates, costs, and processing time.

According to a recent article on the future of AI in banking, organizations that use intelligent technologies to solve and even anticipate complex problems have realized a 20% savings in capital expenditures and a 20% decline in customer churn.

More intelligent, seamless connectivity between banks and corporate clients

We’ve recently been working with Lloyds Banking Group, a leading UK-based financial services organization that is pursuing digital transformation. Using intelligent technologies, the firm is a leader in cash management and payments processes for corporate and institutional clients.

Lloyds is focusing on customer experience by developing sophisticated self-service features that use complex data analytics and cloud-based solutions. An API-first platform will help clients embrace opportunities emerging through open banking and transparent connectivity across a core digital platform accelerates the payments process.

There’s no doubt that intelligent technologies will drive value in the next-generation economy. By embedding automation into business processes, supporting massive connectivity, connecting the IoT, ML, and AI, and enabling data-driven insights from advanced analytics, banks can help meet the challenges of a dynamic industry.

Sometimes change is hard. But for commercial banks, there’s no question that it’s incredibly valuable. Are you ready to embrace the benefits of intelligent technologies?

Lloyds will be joining us at Sibos. Please join us to hear more about Lloyds’ digital transformation journey.

Falk Rieker

About Falk Rieker

Falk Rieker, Global Vice President and Global Head of the Banking Business Unit at SAP, is a senior level financial services professional and SAP veteran with over 20 years’ experience. He is responsible for leading the SAP banking solution strategy and connecting bankers with the technology they need to succeed in today´s workplace. As a thought leader in the banking space, Falk frequently speaks at international banking conferences and has been published and quoted in leading industry publications like Forbes, American Banker, IDG and Wall Street and Technology. Follow Falk on Twitter (@FalkRieker), LinkedIn, Youtube, and Instagram.