Celent Model Bank 2016, Part V: Case Studies in Cash Management and Trade Finance

by Patricia Hines, April 13, 2016
Case Studies
Global

Abstract

The vision for Celent’s Model Bank research, now in its ninth year, is to spotlight effective uses of technology in banking. The approach that Celent takes is to seek examples of best practices in technology usage which, in aggregate, would answer three questions below.

Every year we suggest five to eight categories and invite banks to nominate their technology initiatives. We review all nominations and recognize a number of them — up to four per category — with a Model Bank award.

In 2016, Celent accepted nominations in seven categories and awarded 18 initiatives. The case studies of winning initiatives are profiled in a seven part report series published today:

  1. Digital Banking Transformation
  2. Omnichannel Banking
  3. Digital Payments and Cards
  4. Corporate Payments and Infrastructure Modernization
  5. Cash Management and Trade Finance
  6. Security, Fraud, and Risk Management
  7. Legacy and Ecosystem Transformation

In Part 5, Celent profiles two award-winning initiatives in cash management and trade finance.

  • CIBC myClient product and pricing management
  • HBL (Habib Bank) unified corporate digital platform

Cash management and trade finance play a dominant role for many of the globe’s largest banks. These banks are dependent on this segment as a steady, stable source of fee and interest income. While this income represents low credit risk with minimal associated capital requirements, successfully serving cash management and trade finance customers require a dizzying array of products and services.

In this key banking segment, the strategic deployment of technology represents a compelling differentiator and contributor to growing market share. The Celent Model Banks in the Cash Management and Trade Finance category achieved product innovation through management vision and key partnerships with leading financial services software providers.

“Although they are extremely varied, all of the nominations received in this year’s Cash Management and Trade Finance category delivered substantial quantitative and qualitative benefits, says Patricia Hines, senior analyst with Celent’s Banking Group and author of the report. “Whether arising from digital transformation, technology innovation or legacy modernization, the most compelling benefits arose from projects focused on improving the customer experience.”

Nominations for Model Bank awards were accepted in late 2015. The Celent Banking team selected winners based on business benefits, degree of innovation, and technology or implementation excellence. Each Model Bank winning initiative is presented as a detailed case study within the report, including descriptions of business drivers, solutions, success metrics, and future plans.

This 26-page report contains two Celent Model Bank case studies, four tables, and two figures.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

4

 

Model Bank Overview

4

 

Summary of Model Bank Award Winning Initiatives

6

Key Themes in Cash Management and Trade Finance

10

Case Study: CIBC myClient

12

 

Overview

12

 

Opportunity

12

 

Solution

13

 

Results and Future Plans

14

Case Study: HBL (Habib Bank): Unified Corporate Digital Platform

16

 

Overview

16

 

Opportunity

17

 

Solution

17

 

Results and Future Plans

19

Conclusion

20

Leveraging Celent’s Expertise

21

 

Support for Financial Institutions

21

 

Support for Vendors

21

Related Celent Research

22

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