IDC FutureScape: Worldwide Corporate Banking 2023 Predictions
This IDC Financial Insights FutureScape presents the top 10 predictions for the corporate banking industry."Caught between a rock and a hard place, the corporate banking industry is facing massive pressure to ensure liquidity and stabilize financial supply chains, while dealing with the deteriorating credit quality in the light of an emerging recession and rising interest rates," said Tom Zink, senior research director, IDC Financial Insights. "At the same time, the ongoing transformative pressure to support the emerging ecosystem is forcing banks to move quickly or face disintermediation by other ecosystem participants."
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 2024, 30% of corporate banks will offer reconciliation as a service, built upon request to pay, e-invoicing, and real-time payments, leading to new revenue streams in payments reconciliation
- Associated Drivers
- IT Impact
- Guidance
- Prediction 2: By 2025, 40% of corporate banks will deploy privacy-enhancing technologies to enable new trusted multiparty computation scenarios across AI/ML modeling, business analytics, and the cloud
- Associated Drivers
- IT Impact
- Guidance
- Prediction 3: By 2025, 50% of corporate banks will adopt enterprise risk management tools with predictive analytics to mitigate uncertainty and improve risk-based strategic sourcing, resilience, and trade management
- Associated Drivers
- IT Impact
- Guidance
- Prediction 4: By 2025, 40% of global corporate banking revenue will be accrued through collaborative engagements such as embedded finance, banking as a service, and platform integration
- Associated Drivers
- IT Impact
- Guidance
- Prediction 5: By 2026, worldwide B2B BNPL will reach $500 billion, with fintechs and BNPL platforms competing with legacy financial institutions to provide SMBs with working capital loans
- Associated Drivers
- IT Impact
- Guidance
- Prediction 6: By 2026, 15% of the global foreign exchange derivatives market will originate from embedded hedging services (hedging-as-a-service)
- Associated Drivers
- IT Impact
- Guidance
- Prediction 7: By 2027, corporations will reduce B2B payment costs by 5% through the integration of real-time networks
- Associated Drivers
- IT Impact
- Guidance
- Prediction 8: By 2027, 50% of new securities issued globally will be issued as NFTs (or blockchain-based tokens) as a technology channel for private and public equities, debt, and derivatives
- Associated Drivers
- IT Impact
- Guidance
- Prediction 9: By 2028, 50% of corporates will practice enterprise liquidity management, requiring banks to deliver API-based, real-time data services and transactional services to centralize treasury operations
- Associated Drivers
- IT Impact
- Guidance
- Prediction 10: By 2028, digital trade finance transactions will make up 30% of trade finance if trade ecosystems become interoperable, standardized, technology-agnostic, and easily accessible to customers
- Associated Drivers
- IT Impact
- Guidance
- Advice for Technology Buyers
- External Drivers: Detail
- Storms of Disruption — Accelerating, Interconnected Uncertainty
- Global Supply Shock — Refocusing on Multisource and Resilience
- Digital Business — Stepping Stone to the Future Enterprise
- Meaningful Intelligence — Differentiated Decision Power
- Ecosystem-Based Innovation — Driving Enterprise Value
- Everything as a Service — Thriving Through the Change
- Learn More
- Related Research
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