Digitization Strategies in Corporate Banking von Brigitte Ross
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Transcript of Digitization Strategies in Corporate Banking von Brigitte Ross
Digitization Strategies in Corporate Banking
Key Note Referat: Bosshard & Partner AG
8. April 2015 Brigitte Ross
CREDIT SUISSE | Private Banking & Wealth
Management
Corporate & Institutional Clients
Key Initiatives & Digital Innovation, SGB
September 1, 2014digitization Strategy C&IC 2
Corporate & Institutional Clients at Credit SuisseThe Ideal Partner in the Corporate Client Business
What We Do
� Advise and support 800 corporate groups, 100,000 SMEs, 3,200 institutional clients1, 2,500 financial institutions2, 300 commodity brokers, and 180 shipping companies
� Provide comprehensive coverage of all financial service needs for corporate and institutional clients in Switzerland as well as for banks worldwide
� Support the Swiss economy by providing credit, as well as services for export and import activities3
Who We Are
� More than 1,800 employees at over 50 locations worldwide
� A solid, stable revenue stream for the Credit Suisse Group
� A reliable partner for working with IB and PB to tap revenue synergies
1 Pension funds, health insurers 2 or 1,300 bank groups
3 including trade finance, FX, export finance
Key Note Anlass, Bosshard & Partner 8. April 2015
September 1, 2014digitization Strategy C&IC 3
Corporate & Institutional ClientsOf Great Importance to the Swiss Economy
Stable Credit Supply
� With CHF 22.0 billion, Credit Suisse holds around 26% of unsecured loans in the Swiss
economy
� C&IC is part of a robust bank – look-through total capital ratio of 16.1%
Strong Advisory Skills
We stand out thanks to our great advisory expertise and excellent service for all the needs of
Swiss companies, pension funds and health insurers, global banks, and more
� We are one of the leading banks on the domestic Swiss market for structured and
syndicated credit transactions
� We process approximately 100 capital market and M&A transactions
� We provide CHF 2.9 billion in leasing volume for approximately 5,000 clients
Global Capability
We are skilled in handling the requirements of the global Swiss economy, e.g.:
� Trade finance volume of CHF 105 billion or approx. 42,000 transactions each year (bank
guarantees, documentary credits, documentary collections, export finance)
� Approx. CHF 160 billion foreign currency business for corporate clients each year (approx.
115,000 transactions)
� Approx. CHF 210 million in national and international payment transactions each year
Sources: David Scholl (TGGC 42)
Credit Suisse Quarterly Report, Q4 2013
C&IC Business Specialists, February 2014Key Note Anlass, Bosshard & Partner 8. April 2015
December 10, 2014C&IC, Key Initiatives and Digital Innovation, SGB 4
Trends & Market developments 1
How to improve top line results2
Achieve efficiency with digitization3
Some thoughts on technology trends for B2B banking
4
Agenda
Key Note Anlass, Bosshard & Partner 8. April 2015
8. April, 2015Key Note Anlass, Bosshard & Partner 5
Corporate Banking: Degree of Digital Transformation Varying betw. Segments – Relevance in Corporate Banking to Strongly Increase
Source: McKinsey
Focus of banks’ digital effortsHigh impact of digital
MNC
(>1 bn)
� Product platforms digitized for cash management
and capital markets flow products
� Trend towards multi-provider platforms
Offering mostly limited to payments and cash
management functionalities
Digital transformation ongoing for 10–15
years
Significant branch closures
Large-corp
(250 m–1 bn)
Mid-corp
(25 m–250 m)
SME
(<25 m)
Retail
� Severely affected by retail branch closures
� Retail offering without specific tailoring to SMEs
Focus today
Offering mostly limited to payments and cash
management functionalities; selected FX trading at
upper end
Markets & Trends1
Key Note Anlass, Bosshard & Partner 8. April 20158. April 2015
8. April, 2015Key Note Anlass, Bosshard & Partner 6
Credit Suisse UBS ZKB Raiffeisen Post Finance CommerzBank
DB
Self Service Functionalities
Multibank Cash Management
Liquidity Forecasting and Planning
Forex Transaction Management
Assets and Liabilities
Markets and Alerts
Research
Account Info
Primary large international players offer solutions for corporate bankinge.g., Bank of America, HSBC etc. Local banks focus on WM and retail.
100% covered 0% covered
Markets & Trends1
8. April 2015
8. April, 2015 7Key Note Anlass, Bosshard & Partner
Financial Ambitions of numerous corporate banks Digitization Is Pivotal to Overcoming Top Line and Cost Saving Challenges
PTIOPEX
Challenge ’15: Save cost to meet
cost saving targets
Credit
Provisions
Net Revenues
FC ‘15
Challenge ’15:Gaps to meet
topline targets
� Banks are facing revenue and cost
challenges, both short and mid term
� Revenue challenge
− Short term (2015), optimizing our
existing businesses will not suffice
to achieve our revenue target 2015
− Mid term (2016/2017), as long as
capital restrictions continue, new business model and digitization are essential
� Cost challenge
− Short term (2015), further savings
without threatening franchise
only feasible by adjusting
operating model
− Mid term (2016/2017), digitization is the only lever to gain further savings
Corporate Banking Financial Plan Challenges
Digitization strategy pivotal to over-coming these challenges
Markets & Trends1
8. April, 2015 8Key Note Anlass, Bosshard & Partner
Trends & Market developments 1
How to improve top line results2
Achieve efficiency with digitization3
Some thoughts on technology trends for B2B banking
4
Agenda
December 10, 2014C&IC, Key Initiatives and Digital Innovation, SGB 9
Growth ideasHow to overcome growth limitations in banking
PTIOPEXCredit
Provisions
Net Revenues
FC ‘15
Growth?
Corporate Banking Financial Plan
How digitization creates growth:
� Simplification & Integration
� Create disruptive models
� Provide user experience
1
2
3
How to improve top line results2
Key Note Anlass, Bosshard & Partner 8. April 2015
December 10, 2014C&IC, Key Initiatives and Digital Innovation, SGB 10HECR Program
Portfolio CockpitInvestment Reporting at Your FingertipsiPad App for Global Custody Clients
credit-suisse.com/portfoliocockpit
Top line lever: Ex. Portfolio Cockpit for Institutional Investors
How to improve top line results2
8. April 2015Key Note Anlass, Bosshard & Partner
Top line lever: Disruptive business and pricing modelsEx. Corporate Cash Manager: Premium offering for key corporate clients
Urteil der Fachjury
‘’Die Corporate-Cash-Manager-App ist eine innovative Tablet-und Desktop-Anwendung auf der Basis einer Multibank- und mobilen Cash Management-Lösung. Als First-Mover im Schweizer Corporate Banking Markt bietet Credit Suisse mit dieser Anwendung ihren Geschäftskunden den Blick auf alle relevanten Finanzzahlen, Kassenbestände usw. und lassen so zum Beispiel eine Liquiditätsplanung zu.’’
Premium solution for key corporate clients� VIP solution only offered to key clients in C&IC
� Clients have to achieve a revenue target
to benefit from this digital service
� For onboarding CHF 1,000 is charged one time
� No transaction or product charge occurs for the client
Client Potential� SMEs with revenue target around 50K direct revenues
BUSINESS SILVER
January 20, 2015� Video Corporate Cash Suite / Demo Tool 11
How to improve top line results2
8. April 2015
December 10, 2014C&IC, Key Initiatives and Digital Innovation, SGB 12
Trends & Market developments 1
How to improve top line results2
Achieve efficiency with digitization3
Some thoughts on technology trends for B2B banking
4
Agenda
8. April 2015Key Note Anlass, Bosshard & Partner
8. April, 2015 13Key Note Anlass, Bosshard & Partner
Digitization has by far the highest potential to save cost Industralization, off-shoring/near-shoring etc. can not reach efficiency impact of digitization
PTIOPEXCredit
Provisions
Net Revenues
FC ‘15
Efficiency?
Corporate Banking Financial Plan
How digitization saves cost:
� Self admin and self service
� Digital onboarding /e-signature
� Reduction of fragmented solutions
1
2
3
Achieve efficiency with digitization3
8. April 2015
8. April 2015 14Key Note Anlass, Bosshard & Partner
Support Interfaces
Online ToolsElectronic
Interfaces
Simplification & IntegrationClients are confronted with fragmented online solutions. Especially in corporate
banking: Example Credit Suisse Institutional Clients
Corporate Service Online Channel Login4
PortfolioNet/Cockpit
CLS
FactoringNet
My Custody
Reuters
1Accounts
Cash Management
Payments
Safekeeping
Trading
Stock Option Plan
Direct Trade Finance
MMCM5
eATS/MySolutions
1
1
1
1
1
2
1
3
2
2
1
2
3
Bloomberg 3
EAM Exchange/EAMNet 2
Trading Screen
Securities Expert
WebMax
Glox, Xkyte, GL Trade
3
2
3
3
Deskto
p T
oo
ls
Connectivity
SWIFT File Act/FIN
DirectExchange
SecureMail
SmartConnect
EuropeConnect
FTP
DTA
A
A
A
A
A
A
A
DirectLink A
SWIFT Score1
Bolero1
PSN
PSN Light
FIX Direct
A
A
S
S
A
Fax A
A2/S3
Acco
un
ts a
nd
Paym
en
t d
ata
Tra
din
g
Bloomberg FIXReuters (ROR/RTEX)
FIX
A
A
Sec.
data
Tra
d
e F
in.
Tra
din
g T
oo
lsD
irectN
et
Financing
Asset Services
and Trading
Cash Mgmt.
Accounts
Payments
1 Nur für Handelsfinanzierungen. 2 Asynchron. 3 Synchron.4 1 – Single DirectNet Login; 2 – DirectNet based Login; 3 – Specific Login.5 Mobile Multibank Cash Management.
See details in Appendix 2.
Achieve efficiency with digitization3
8. April 2015
October 30, 2014Implementation of C&IC Digitization 15
A portal solution simplifies access for clients andand enables new business
IntegrationSelf Administration
Self
Investigation
E-F
orm
alit
ies
E-SignatureData Mining
Self ServiceSimplification
Sin
gle
sig
n-o
n
E-Vault
Clie
nt
Experience
Business
Intelligence
� Video Credit Suisse Corporate Banking Multichannel Dashboard
Achieve efficiency with digitization3
8. April 2015
December 10, 2014C&IC, Key Initiatives and Digital Innovation, SGB 16
Trends & Market developments 1
How to improve top line results2
Achieve efficiency with digitization3
Some thoughts on technology trends for B2B banking
4
Agenda
Key Note Anlass, Bosshard & Partner 8. April 2015
September 1, 2014digitization Strategy C&IC 17
Technology Strategy for Corporate Clients directs to Windows 10Corporate clients want integrated solutions. Desktop and tablet in one is great solution.
Trend: Multidevice capability Trend: Integration
Client Groups
Retail and Private Clients Corporate and Institutional Clients
Desktop/Laptop
MAC OS Android Win 8/8.1 MAC OS Android Win 10
All-in-one
Tablet
Smart phone
Only for alerts
or warnings
Only for alerts
or warnings
Only for alerts
or warnings
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Some thoughts on technology for B2B banking
4
Key Note Anlass, Bosshard & Partner 8. April 2015
September 1, 2014digitization Strategy C&IC 18
Clients are should dictate the directions for digitization…
Corporate Clients are with the banks that support them to be successful in their business
� Always start with a strategy � Involve your clients from the beginning in your digitization efforts
� Apply agile methods that allow to constantly review results with your clients
� Also review solutions in friends & family pilot phases� Align your internet digital marketing strategies with your digital offerings
Conclusion
Key Note Anlass, Bosshard & Partner 8. April 2015
September 1, 2014digitization Strategy C&IC 19
And don’t forget: In 2020 digital natives will be the majority!Its time to move on….
Corporate Clients are seeking for the banks that help them to be successful in their business
Conclusion
Key Note Anlass, Bosshard & Partner 8. April 2015
September 1, 2014digitization Strategy C&IC 20
It was a pleasure to be with you!
Please contact me for further information and questions:Brigitte Ross I LinkedIn
Conclusion
Key Note Anlass, Bosshard & Partner
View profile www.linkedin.com/pub/brigitte-ross/51/a04/a45/en
8. April 2015