80% Indian corporate banks to leverage Cloud by 2024: Report

Nearly 80 per cent of corporate banks in India are forecast to run their trade finance and treasury workloads on Cloud by 2024, said a new IDC report on Friday.

By 2023, to counter the uncertainty of the pandemic, 60 per cent of corporate banks will be revisiting credit scoring models and prioritising an open data strategy to improve loan portfolio health, according to the report.

Compared with developed economies, India’s corporate banking sector is still in its nascent stage in terms of product and service offerings.

However, this is being tested on twin counts of increasing digitalisation of the Indian economy and globalisation of Indian companies, which are bringing in rapid sophistication in operations and engagement.

“In India, corporate banking has remained undelivered during the last couple of years, but going forward, the scenario might change as the threat of the Covid-19 pandemic dwindles and the prospect of India playing a key role in the revival of global supply chain environments gain momentum,” said Ganesh Vasudevan, Research Director, IDC Financial Insights Asia/Pacific.

The pandemic has forced CFO focus on liquidity. In response, 55 per cent of corporate banks will invest in supporting predictive liquidity management and 60 per cent will upgrade data and connectivity capabilities by 2024 in the country.

“Traditional brick-and-mortar businesses are increasingly moving to B2B sales online, and corporates expect their bankers to understand the workflow to provide value-added solutions like seamless counter-party onboarding, provide a credit assessment, and finalize the settlement terms without using the traditional invoicing and collection process,” Vasudevan explained.

With the prospect of a sharp recovery in economic activities in 2021, corporate banking in India is expected to witness a significant evolution in the path to recovery as banks redesign their corporate customer experience (CX) on a digitalised scale by leveraging technology and innovations.

–IANS

na/

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor