FinanceNews & Analysis

Advanced Analytics Can Help Banks Overcome Myriad Challenges: BCG-SWIFT Report

For thriving and staying relevant in this challenging environment, corporate banks must embrace the advanced analytics.

In order to thrive and stay relevant in a challenging environment, corporate banks must embrace the advanced analytics,a new report by Boston Consulting Group (BCG)-SWIFT Report says, adding that advanced analytics can improve corporate bank’s topline and operational excellence and help banks overcome many of their present challenges.

The report titled: ‘Unlocking Success in Corporate Banking through Digital was released at SWIFT India and South Asia Regional Conference 2019 in Mumbai. The report findings highlight the benefits of digital integration in Corporate Banking. In current scheme of things, corporate banks are confronting turbulent trends. Some of the key challenges faced by them are growing corporate NPAs, shrinking lending margins, bans on LoUs and MoUs, increasing instances of cyberattacks and fraud, digitally disruptive Fintechs and tech-savvy customers.

The report shows that in FY’18, 45% of corporate banks’ profit declined whereas in the same year, VC investment in Indian fintechs touched an all-time high of $960 million. The report states that corporate banks can unlock 10-15% topline improvement by developing smart pricing algorithms. The report also states that by improving client’s share of wallet, the banks can achieve 5-10% fee income improvement. Besides, through the digital RM tools as well as
analytically selecting and linking leads, relationship managers can potentially double their lead conversions.

Saurabh Tripathi, Senior Partner and Director at BCG and the co-author of the report said, “Corporate banks, in their pursuit to realign their portfolios towards fee-based products, will have to be ready for digital transformation on three key dimensions – customizing product propositions, achieving operating model excellence and
leveraging big data and advanced analytics to transform their top line.”

He added, “It is imperative for today’s corporate banks to trigger this digital shift by driving change from the leadership downwards, articulate the importance of digital transformation to the bank’s employees, and adopt an agile way of working to accelerate this transformation.

Kiran Shetty, CEO SWIFT India Domestic Services Private limited, said, “SWIFT India Domestic Services Private Limited, a joint venture formed with the banking community brings world class SWIFT technology and tools to the Indian financial community, in the areas of trade, treasury, securities and cash management. We are excited to help the community leverage our capabilities to accelerate digitization and standardization across all aspects of their operations.”

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