Delivering Better Treasury Services Through Digital Transformation

by Patricia Hines, July 6, 2015
Industry Trends
Global

Abstract

Digital transformation is a hot topic across the banking industry. What are the implications for treasury services providers to increase revenue, reduce costs, and better manage risk through digital transformation?

In the report Delivering Better Treasury Services through Digital Transformation, Celent focuses on three closely related and high-impact corporate banking solution sets.

  • Corporate-to-bank connectivity.
  • Payables and receivables automation.
  • Trade and supply chain finance.

These three product lines, core to serving corporate customers, are where there are opportunities for improvement in treasury services. All three already use extensive automation and digitization, but they are using “old digital.” That is, the technology is often dated, and many of the initiatives have merely electronified a manual process rather than used technology to transform the process.

“Automation and digitization initiatives in treasury management services can form a foundation for transaction banks to compete and win over the next decade,” says Patricia Hines, a senior analyst with Celent’s Banking practice and author of the report. “Banks that do this better and more efficiently than their competitors will enhance client loyalty and solidify their prospects for long-term growth.”

By discussing opportunities and benefits for enhancing critical treasury services product areas, this report seeks to outline opportunities for transaction banks to improve service delivery, increase customer satisfaction, and unlock opportunities to grow fee revenue. It also highlights the importance of identifying changes needed in products and services, information technology, and organization and people to deliver on the promise of digital transformation.

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

3

Corporate-to-Bank Connectivity

5

 

An Explosion in Relationships and Accounts

5

 

Corporate Preferences

6

 

Corporate-to-Bank Connectivity to the Rescue

7

 

Recommendations

8

Payables and Receivables Automation

10

 

Expanding Payables Automation

10

 

Expanding Receivables Automation

12

 

Recommendations

13

Trade and Supply Chain Finance

14

 

Understanding the Opportunity

15

 

Recommendations

18

The Path Forward

20

Leveraging Celent’s Expertise

21

 

Support for Financial Institutions

21

 

Support for Vendors

21

Related Celent Research

22

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