Power of Corporate banking CRM: Revolutionizing corporate banking with digital innovation

Digital is bringing a delightful transformation in efficiency, convenience, and automation in retail banking. Yet, for corporate banking, all this could be happening on another planet.

COVID-19 and Corporate banking’s digital awakening

In the past, corporate banks were perceived as lagging in the adoption of digital technologies compared to retail banks. However, the COVID-19 pandemic has acted as a catalyst, compelling corporate banks to expedite their digital transformation efforts and offer innovative solutions to their customers. As businesses grappled with the challenges posed by the pandemic, the need for efficient and flexible banking CRM became more evident than ever. This shift towards digitalization in corporate banking CRM was not only driven by customer demand but also by the necessity to ensure business continuity and streamline operations in the face of unprecedented disruptions.

In this blog, we will explore how the power of digital is revolutionizing CRM for corporate banking and meeting the evolving needs of businesses. The digital revolution is not just about making banking processes faster; it’s about reimagining the entire banking experience for corporate customers. Here are some ways in which digital innovation is transforming corporate banking CRM:

1. Instant Current Account Opening Journeys

Digital is empowering corporate bankers to deliver instant current accounts 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 CRM for corporate banking like BUSINESSNEXT‘s corporate banking platform can then fetch the business details based on the 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 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 businesses. Digital can be the therapy that makes life easier for both enterprises and banks with instant digital credit.

A registered corporate customer can initiate an instant loan journey through any channel. He fills in his registered contact details and Customer Reference Number (CRN) and authenticates via OTP. The customer then verifies the loan details including processing fees and submits the application. He can upload documents like request letters, tax certificates, etc. for faster sanctioning. The customer instantly gets the application ID through which he can track the application status.

MSMEs are securing loan approvals of up to Rs 10 crore within a span of 59 minutes, followed by disbursement within 8 to 10 days.

Once the application is sanctioned after following the regulatory norms, the credit amount is disbursed to the customer’s bank account. As an application moves towards closure, digital can bring in standardized disclosures, e-signatures, and customer onboarding. This reduces process variance between departments and operations and further speeds up the origination process.

3. Personalized Insights and Recommendations

Data analytics and artificial intelligence are powerful tools that CRM for corporate banks can employ to provide their customers with personalized insights and recommendations. By analyzing customer data and financial patterns, banks can offer valuable guidance to businesses, aiding them in making informed decisions about their finances, investments, and operations. This personalized approach enhances the corporate banking experience and strengthens the bank-customer relationship.

4. Enhanced Customer Service

According to McKinsey, 71% of customers anticipate personalized experiences from businesses, and a staggering 76% express frustration when these expectations remain unfulfilled.

In the digital age, customer service has taken center stage. Corporate banks can leverage digital technologies to deliver enhanced customer service experiences. Features such as 24/7 online chat, self-service portals, and user-friendly mobile banking apps ensure that businesses have access to essential corporate banking CRM services whenever and wherever they need them. These digital touchpoints not only improve customer satisfaction but also enable banks to efficiently handle customer queries and requests. The integration of chatbots in the customer service process exemplifies how digital solutions are enhancing engagement and responsiveness.

5. Automated Workflows

Digital transformation allows corporate banks to automate their workflows, reducing manual processes and operational inefficiencies. By automating routine tasks, employees can focus on more strategic responsibilities, such as relationship management and providing tailored financial advice to clients. Automated workflows also enhance accuracy and speed, leading to smoother and more efficient corporate banking operations. For instance, loan approval processes can be streamlined through automated credit assessments and document verification, minimizing errors and expediting decision-making.

6. Secure Data Storage and Sharing

Security is a paramount concern for businesses when it comes to financial transactions and data management. Corporate banks can leverage digital technologies to ensure secure data storage and sharing with their customers. By implementing robust encryption and authentication measures, businesses can confidently manage their finances and collaborate with their bank while safeguarding sensitive information.

A technology company is seeking a banking partner to securely store its financial data and collaborate on cash flow management. The XYZ bank employs strong data encryption protocols and a secure client portal. The technology company can upload financial data, collaborate with the bank’s financial experts, and access reports and insights while knowing their sensitive information is protected.

7. Compliance Monitoring

Regulatory compliance is a significant responsibility for corporate banks. Digital tools can help banks monitor their compliance with regulations effectively, reducing the risk of non-compliance, fines, and penalties. Implementing digital compliance solutions ensures that the bank and its customers’ interests are protected, fostering trust and credibility. By utilizing digital platforms to track and report compliance-related activities, corporate banks can demonstrate their commitment to upholding industry standards and providing transparent financial services.

In conclusion, the metamorphosing landscape of corporate banking demands adaptability, and adeptly harnessing digital prowess will undoubtedly emerge as the quintessential factor that sets an exclusive few apart amidst fierce competition, leaving their counterparts in awe as they forge new frontiers of innovation and customer-centric excellence. The integration of digital technologies is not just a necessity; it’s a strategic imperative for corporate banks looking to thrive in the modern business landscape. As the journey of digital transformation continues, corporate banking CRM is poised to redefine efficiency, convenience, and customer engagement, creating a new era of banking experiences that cater to the unique needs of businesses.