Digital is bringing in delightful transformation in efficiency, convenience and automation in retail Banking. Yet, for the average Corporate banker, all this could be happening in another planet.
There was little incentive for change in corporate banking as the return of equity (RoE) of the segment was usually in double digits as compared to high single digits in retail.
Today, though, digital is critical for corporates as business and economy are drying up. Corporate bankers are on the lookout for offering differentiated services with the power of digital.
Inefficient communication leads to effective pains
Customer onboarding in corporate banking usually consists of five steps in general. Initial consultation, documentation, KYC checks, customer training and engagement. Corporate banking is often beset with poor process transparency and siloed collaboration.
The power of digital for commmercial banking:
1. Instant current account opening journeys
Digital is empowering corporate bankers to deliver instant current account for businesses and practice social distancing with digital journeys, eKYC and video
consultations.
A corporate customer can start the journey from any channel and select the branch closest to his business location. He then fills in contact details and authenticates via OTP. A banking CRM can then fetch the business details based on business tax id. Demographic details can then be confirmed and a brand new current account number is instantly delivered. As per regulatory norms, bankers can then complete eKYC through digital documentation with OCR capability and or complete physical KYC through biometric authentication. After fulfillment, the current account is activated.
2. Instant MSME loans
After the economic havoc brought about by COVID 19, small businesses today are in intensive care. Credit is the lifeline for small busineses. Digital can be the therapy that makes life easier for both enterprises and banks with instant digital credit.
A registered corporate customer can initiate instant loan journey from any channel. He fills in his registered contact details and Customer Reference (CRN) Number and authenticates via OTP. The customer then verifies the loan details including processing fees and submits the application. He can upload documents like request letter, tax certificates etc for faster sanctioning. Customer instantly gets the application id through which he can track the application status.
Once the application is sanctioned after following the regulatory norms, the credit amount is disbursed to the customers bank account. As an application moves towards closure, digital can bring in standardized disclosures, e-signature and customer onboarding. This reduces process variance between departments and operations and further speed up the origination process.
Impactful conclusion:
Digital can enable instant fulfillment, convenience and a delightful experience for both corporate bankers and customers. It can
1. Reducing cost per customer by 15 percent and more
2. Cutting time to onboard by 20 percent
