80% of Banks in India to run workloads as-a-Service: IDC

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New Delhi: 80% of Banks in India will run trade finance and treasury workloads as SaaS or on PaaS architectures, predicts IDC.

IDC has published the IDC FutureScape: Corporate Banking Worldwide 2021 Predictions — India Implications that contextualizes Corporate Banking predictions for 2021.

Compared with developed economies, India’s corporate banking sector is still in its nascent stage in terms of product and service offerings. However, this is being tested on twin counts of increasing digitalisation of the Indian economy and globalisation of Indian companies, which are bringing in rapid sophistication in operations and engagement.

“In India, corporate banking has remained undelivered during the last couple of years, but going forward, the scenario might change as the threat of the COVID-19 pandemic dwindles and the prospect of India playing a key role in the revival of global supply chain environments gain momentum,” said Ganesh Vasudevan, Research Director – IDC Financial Insights Asia/Pacific.

Corporates are increasingly relying upon their bankers to help them with their working capital contingencies while supporting them in seizing the emerging opportunities. Under these circumstances, banks have the unique opportunity to respond to the corporates’ growing need for real-time information flow, financial advice, and funding support.

“Collaboration is the order of the day, with corporates pursuing value and efficiency from their banks. Traditional brick-and-mortar businesses are increasingly moving to B2B sales online, and corporates expect their bankers to understand the workflow to provide value-added solutions like seamless counterparty onboarding, provide a credit assessment, and finalise the settlement terms without using the traditional invoicing and collection process,” added Vasudevan.

Some of the key corporate banking predictions that will impact the IT industry and both technology buyers and suppliers in India are:

Predictive Liquidity Forecasting: COVID-19 forced CFO to focus on liquidity. In response, 55% of corporate banks will invest in supporting predictive liquidity management and 60% will upgrade data and connectivity capabilities by 2024.

Cloud-Based Corporate Banking: By 2024, 80% of banks in India will run trade finance and treasury workloads as SaaS or on PaaS architectures.

Open Credit Decisioning: By 2023, to counter the uncertainty of the pandemic, 60% of corporate banks will be revisiting credit scoring models and prioritizing an open data strategy to improve loan portfolio health.

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