Corporate banks face multiple challenges. Economic conditions remain somewhat uncertain and regulators continue to pressure banks to solidify their balance sheets which ultimately increases the cost of compliance.
In some markets, the combined effect of reduced demand for commercial loans and low interest environments has seen interest-based revenues decline which puts corporate banks under tremendous strain. Margins are being eroded quickly across the world.
Finally, and possibly the biggest problem facing corporate banks is the declining loyalty of their customer base. Like retail customers, business customers will move to banks that understands their needs and requirements, providing value-for-money products and services.
It’s time for corporate banks to meet disruption through digital transformation. It’s time to evolve your business model to gain competitive advantage in the digital world.