How banks can deliver industry-specific value propositions | NTT DATA

Wed, 06 April 2022

How to help banks to deliver Corporate and Investment Banking combined value propositions per industry

Why industry knowledge is key for a banking relationship

As optimism returns to businesses, there is a renewed focus on growth and profitability. But the challenges of the past two years have caused businesses to question everything they do and ensure they are working with partners that speak their language and understand their unique challenges and requirements. They don’t want a “one size fits all” approach, they want to be able to call on expertise when they need it.

Businesses seek online and efficient interactions with banks

This comes against the backdrop that the personal relationships that used to be nurtured between the banks and their clients are now much weaker. Today it is much more likely that a corporate client’s primary channel for interfacing with their bank is online – in fact by and large this is what corporates want. Speaking to somebody to carry out day-to-day activities slows them down.

The pace of business means that they don’t want to wait for a request for banking services to go up the chain of command and come back a week or two later. They want services immediately. Ideally, they want self-service. Bespoke services that they can configure and adapt as they see fit.

This isn’t to say that human to human interactions are a bygone feature of banking. It’s just that demand has diminished in most sectors.

Industries most likely to still want Human to Human communication

(Face to face, phone, email)

Industries most likely to want Human to Machine communication

(Mobile apps, Web platforms)

Industries most likely to want Machine to Machine communication

(APIs, Host to Host)

Consumer services

Construction and property

Retail

IT, Technology, and Telecoms

Life Sciences

IT, Technology, and Telecoms

Logistics

How banks can deliver industry-specific solutions for added value

In order for banks to be able to offer quality value propositions, in NTT DATA, we realize the challenges involved in transforming a bank’s internal processes and delivering the omnichannel solutions now demanded by CFOs today. This is where our specialist knowledge across all sectors and industries, together with continuous specialization and investment in technological solutions comes into its own.

Through our advisory services, we understand the requirements facing the banking sector. We propose technological solutions that leverage the latest technology (AI, ML, Blockchain for example) and we implement the most appropriate solution. Once the integration is complete, we continue to support the bank in the collection of results, analysis, and maintenance of the implemented solution.

Conclusion – business trends are becoming a priority

Banks should develop industry-specific value propositions that combine working capital, lending, equity, and cross currency services, allowing them to use the transactional products as an anchor to expand other revenue streams based on cross-selling of products and services and positioning themselves as a value-added partner for corporates. Making banks experts in all industries will help them to increase their business.

As a matter of fact, from NTT DATA we help banks to follow the latest market trends and to develop industry-specific metrics to analyze the entire banking ecosystem with the objective of detecting gaps in their product offerings, sustainability, and innovation.

However, as we look to the longer-term, there are many critical business trends —digital transformation, compliance, and data analytics—that require banks to be the facilitators of change and ensure they give the corporations what they need for today and the future.

As one of our client’s CIB head recently stated: “The future of banks is to finance the future”. At NTT DATA we are facilitating the internal transformation of banks globally to support this huge challenge.

About NTT DATA’s Corporate Banking Offering

We help clients to develop how they interact with corporate clients, how they offer products, and how they operate the business internally all based on data and advanced analytics.

We have created a value offering based on self-service products, new ways of doing business, process improvement, and sustainability. This is built with the sole objective of improving the positioning of banks against their classic competitors, disruptive challenger banks and fintechs alike.