Gathering real-time corporate banking data through ecosystem banking

The corporate clients of banks have become much more sophisticated with advanced account and transaction management needs. The banks currently lack the ability to use the available banking data as intelligence to provide better products for their corporate clients. As a result they depend on other companies for these services.

Inefficiency of the current approach

Banking data is siloed across multiple systems. Banks have to spend precious time accessing this data when they need to use them. Unless data is properly contextualized and categorized it is irrelevant. Only then large volumes of cash flow data is combined into accurate real-time positioning in corporate transaction management. So prevalent banking data management is not a good generator of usable intelligence. Inflexible technologies with manual tasks and disconnected products lead to higher costs and inefficiencies in the present system. Prohibitive license agreements also prevent existing IT architecture from integration with new technologies.

Existing infrastructure becoming barriers to next-generation systems

The pre-existing banking core deters adoption of next-gen systems. So banks lack the ability to use data transformation and provide products based on it. Since the existing architecture is monolithic and handles a high volume of corporate cash flow, it runs a high risk of security and privacy breaches. Manual processes are also essential in the current linear models leading to errors and sizable fines. Banks can avoid this by integrating more products and services. This makes the current system inflexible. So changes are difficult to incorporate and profits are reduced.

Shifting to ecosystem models

New technology is making banks lose market share as corporate partners receive specialist services from tech companies. Instead of competing with them banks should embrace these open APIs and fintech collaborations. The core-banking platforms should shift to modern cores with open APIs and pre-built integrations. Instead of the traditional model where banks are the sole provider of every corporate service, banks should connect with services the clients want. With a diverse ecosystem of partners, services and technologies banks can offer better products with high-speed data access.

Changing services offered by banks to corporates

Cash pooling, payments management, receivables management and virtual account management are essential services. If interoperability between transactional data is possible, it can add real value to banking services. With real-time automation of key corporate cash management activities all this is possible. The relationship between banks and customers is enriched by using insights to provision products at the point of need. With real time pooled data banks can reduce time-to-market for new products and make informed pricing decisions. Corporates can also manage their money effectively and have more control.

The article has been published by the editorial board of the Fintek Diary. Happy Reading. For more information please visit

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