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 Suisse
The 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

Corporate & Institutional Clients
Of 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 2014

December 10, 2014C&IC, Key Initiatives and Digital Innovation, SGB 4
Trends & Market developments1
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 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 Commerz
Bank
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
banking
e.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

banking
4
Agenda

Growth ideas
How 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

December 10, 2014C&IC, Key Initiatives and Digital Innovation, SGB 10HECR Program
Portfolio Cockpit
Investment Reporting at Your Fingertips
iPad App for Global Custody Clients
credit-suisse.com/portfoliocockpit
Top line lever:
Ex. Portfolio Cockpit for Institutional Investors
8. April 2015Key Note Anlass, Bosshard & Partner

Top line lever: Disruptive business and pricing models
Ex. 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, 2015Video Corporate Cash Suite / Demo Tool 11
8. April 2015

banking
4
Agenda
8. April 2015Key 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
8. April 2015

8. April 2015 14Key Note Anlass, Bosshard & Partner
Support Interfaces
Online ToolsElectronic
Interfaces
Simplification & Integration
Clients 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
DesktopTools
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
AccountsandPaymentdataTrading
Bloomberg FIX
Reuters (ROR/RTEX)
FIX
A
A
Sec.
data
Trad
eFin.
TradingToolsDirectNet
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.
8. April 2015

October 30, 2014Implementation of C&IC Digitization 15
A portal solution simplifies access for clients and
and enables new business
Integration
Self Administration
SelfInvestigation
E-Formalities
E-Signature
Data Mining
Self Service
Simplification
Singlesign-on
E-Vault
Client
Experience
Business
Intelligence
Video Credit Suisse Corporate Banking Multichannel Dashboard
8. April 2015

Some thoughts on technology trends for
B2B banking
4
Agenda

Technology Strategy for Corporate Clients directs to Windows 10
Corporate 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
Some thoughts on technology for B2B
banking
4

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

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

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

Digitization Strategies in Corporate Banking von Brigitte Ross

Recommended

Recommended

More Related Content

What's hot

What's hot (19)

Viewers also liked

Viewers also liked (18)

Similar to Digitization Strategies in Corporate Banking von Brigitte Ross

Similar to Digitization Strategies in Corporate Banking von Brigitte Ross (20)

Recently uploaded

Recently uploaded (20)

Digitization Strategies in Corporate Banking von Brigitte Ross