IDC FutureScape: Worldwide Corporate Banking 2020 Predictions

IDC FutureScape: Worldwide Corporate Banking 2020 Predictions

This IDC FutureScape presents the top 10 predictions for the corporate banking industry. Each prediction is shaped by a common set of key drivers that provides a planning tool for technology leaders and their line-of-business counterparts to use in their IT strategic planning efforts. The challenges of the industry continue to be shaped by trying to match fintech innovations, meet customer expectations, and protect the brand while resources are scarce and regulatory burdens persist."The innovativeness and customer experience in corporate banking is increasingly falling behind other lines of business. The shift to real-time payments, the continuous low-interest environment, a looming market correction, and corporate customers expecting a better, more connected, more insightful, and data-driven value proposition will put pressure on banks to move toward building a connected and increasingly open treasury ecosystem. New partnerships and data and value-added services will be key to future proof corporate banks," said Thomas Zink, research director, IDC Financial Insights.

Please Note: Extended description available upon request.


IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By 2021, 70% of corporate banks will adopt real-time payments, but only 25 % will be able to productize it, despite two-thirds of customers being open to pay for related value-added services.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 2: Ecosystem and connectivity are increasingly crucial for banks when choosing treasury apps. By 2023, 50% of treasury applications decisions will be based on partner ecosystem and advanced APIs.
Associated Drivers
IT Impact
Guidance
Prediction 3: By 2023, treasury system software investments are expected to grow at 40%, twice the rate of total treasury ICT; the corresponding liquidity management is a new source of competitive advantage.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 4: As traditional corporate banking business models are coming under pressure, new XaaS models will grow to 4% of total corporate banking revenues by 2023.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 5: By year-end 2020, 85% of banks will implement AI applications enabling intelligent decisions and automated processes for corporate KYC, reducing time to approved enrollment for new corporate accounts.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 6: By 2021, 90% of global corporate banks will service clients by monitoring their transactions and financial operations using data analytics tools to reduce counterparty risk.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 7: By 2023, 30% of corporate banking lines of business will have implemented AI, including data-driven predictive machine learning, for automated payments processing and cash management.
Associated Drivers
IT Impact
Guidance
Prediction 8: By 2025, the convergence of DLT, IoT, and smart contracts will reduce cost for enabled operations by 60% and will cut processing times in half for paper-heavy transactions such as letter of credit.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 9: By 2020, 70% of global corporate banks will provide cash management and liquidity forecasting services to their clients, increasingly based on real-time data.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 10: By the end of 2020, 20% of corporate treasurers worldwide will be running treasury operations on private or public cloud, supplied by banks and enabled by improvements in next-generation security.
Associated Drivers:
IT Impact
Business Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
The Age of Innovation — Driving the Future Enterprise
Description
Context
Sense, Compute, Act — Maximizing Data Value
Description
Context
Accelerated Disruption — Navigating Business Challenges as Volatility Intensifies
Description
Context
Intelligence Everywhere — AI's Opportunity and Implications
Description
Context
The Future of Work —Agile, Augmented, Borderless, and Reconfigurable
Description
Context
The Platform Economy — Competing at Hyperscale
Description
Context
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