In an ever increasing competitive market, expectations of the distribution channel - both in terms of physical client relationships as well as online channels are higher than ever.

As clients become more sophisticated in their online banking needs, global integration to support multiple trading entities has become more significant as well as the need for integrating across products, such FX and trade into the domestic and international payments platform.

Online banking services whilst it has seen significant progress over the past five years still needs to become far more sophisticated than they currently are today. Providing real-time information to clients integrated cross-product and /or cross-regional information is mandatory for those intending to compete – yet this is not a given for some banks.

Financial institutions need to offer clients value-added information services such as:

• Tools for cash flow forecasting
• Single sign-on, as well as a single view of customer, products and positions
• Integrated reporting across products such as transaction banking as well as treasury products, including FX
• Real-time processing and reporting with cash concentration capabilities

The efficiency of the online channel is influenced by how the bank chooses to connect with clients, such as connecting to the back office for accounts payable or accounts receivable functionality. Being able to improve the richness of payment information so that reconciliation is easier, is both important and of value for developments such as e-invoicing.

Other online challenges include a silo approach in the bank where there are often a number of on-line platforms and therefore a disjointed product offering reflecting the bank’s internal business units.

In a number of cases, Capco has been engaged to help the client work through a step change in both the operating model and technology to effectively address the online offering and both extend the product offering as well as providing client driven servicing.