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Journal 28 – Cass Capco Institute Paper Series on Risk
This issue focuses predominatly on the potential causes of the current crisis...

 

Corporate and Transaction Banking

The need to increase shareholder value and deliver performance improvements only intensifies, where focus on technology initiatives and new operating models feature heavily in many of the leading corporate bank’s agendas. This challenge, against a changing landscape of global markets and need for enhancing client relationships requires focus and commitment. 

 

Key drivers that are shaping the industry include:

  • Globalisation – where not only geographical boundaries and barriers to world trade continue to fall but also liquidity is shifting across emerging markets
  • Growth of capital markets – creating more opportunities for transaction banking, such as issuer services and investor services
  • Cost of regulation - not only are sizable budgets being absorbed by regulatory requirements, but also new cross-border competition intensifies as the European landscape changes

 

Optimising current operations to both lower costs and eliminate errors, as well as provide clients with the service and solutions they need, are all competing for limited resources and senior management attention. Achieving performance improvement requires focus on a number of areas

  • Creating scale through the integration of existing businesses and transaction products, such as payments and securities
  • Identifying sourcing and off-shoring strategies where the outsourcing of back-office functions a key focus point
  • Development of new operating models, as well as expanding capabilities through global partnerships
  • Evolution of technology architecture to support these complex business models

 

Despite industry pressures on price and costs, transaction banking will remain a core service for much of the corporate and investment banking market, where it continues to be a core component on which delivery performance is measured.

Capco’s industry professionals have worked with many of the leading financial institutions, providing support and expertise across payments, cash management, trade services, complex lending, custody and clearing.
 

Click here for more information on:

Operating models

Technology architecture

Distribution strategies

Supply chain finance

Client profile management

 

Case study: Corporate and transaction banking