A transparent banking process and ethical financial management is an integral part of any enterprise. To operate successfully, a business needs to be financially sound. It needs to be vigilant about proper money management.

One of the ways corporations can achieve this is by partnering with banks that offer corporate banking services.

1. What is Corporate Banking?

Corporate banking is an area of business banking that offers financial services exclusively to corporate customers.

Managing the finances of any business is a rather complicated task; the magnitude of these challenges increase when the size of the company grows. To help large corporations manage their cash-flow well, corporate banking came into the picture.

Corporate banking clients range from small or mid-size businesses to large multi-million dollar conglomerates that are spread across the globe.

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2. Why Corporate Banking?

Corporate banking services include managing corporate finance, credit management, investment management, asset management, payroll management, and so on.

If you ever wondered what is corporate banking and what its functions are, the answer is simple: corporate banking meets the needs of customers looking for banking services at a much larger scale.

Because of the large sums involved in managing corporate accounts, corporate banking solutions typically yield the highest profits for a bank. One such example would be the corporate loans issued by these banks and the interest charged against these loans. The part hence earned, and the fees charged for other services such as asset management, contribute to the overall revenue of the corporate banks.

3. Corporate Banking Features

To meet the needs of their clientele, corporate banking products offer certain vital features to help their customers. Here is a list of some essential corporate banking features:

a. Credit Availability

Corporations largely depend on business loans to meet various requirements for their day-to-day operations. Corporate banks give them access to credit and other related products. The banks also charge a high rate of interest for such loans because of the higher degree of risk involved in lending to corporate customers.

b. Treasury Services

Treasury services are essential to help corporations manage their working capital. These services are particularly crucial for businesses that operate in different parts of the world as they facilitate currency conversion.

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c. Fixed Asset Financing

For corporations involved in capital-intensive sectors such as manufacturing, transportation, textiles, real estate development, and so on, corporate banks facilitate loans for the purchase of equipment, land, and machinery. They also assist with lease agreements for procuring these assets.

d. Employer Services

Corporate banking services also include a host of products that cater to employee management. Payroll management, retirement plans, healthcare insurance and employee investments are a few examples of employer services.

e. Financial Management and Investments

One of the critical functions of corporate banking is services that include financial management and investment assistance. Services such as portfolio management, debt and equity restructuring, asset valuation are offered to clients that need them. Additional capital for business expansion and growth is also available when required.

4. Digital Corporate Banking Solutions

Due to the complex nature of corporate banking, many vendors mainly build corporate banking applications that help banks provide a seamless experience to their corporate clientele.

Corporate banking technology has witnessed a significant transformation in the past decade. There is a reason why the banking industry’s technology spend is expected to reach $753 billion by 2023.

Corporate banking platforms such as Finacle offer a host of digital corporate banking solutions that are intuitive, fast and tech-oriented. They increase the overall efficiency of banking and corporate finance.

Corporate banking software accelerates digitization and encourages banks to revamp some of their legacy systems. The gradual migration to digital platforms can happen in a phased manner based on business priorities.

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These applications are built on emerging technologies such as blockchain, big data analytics, and machine learning. The combined intelligence of these contemporary technologies along with data-driven platforms strategically position corporate banking for the next wave of technological developments.

Here are the few ways in which corporate banking software aids the growth of the corporate banking sector. And you can also monitor some Information of employees with the top employee monitoring software.

Digitization has made the enormous amount of paperwork a thing of the past. Activities such as corporate deposits, corporate lending, and trade finance can now be conducted on these digital platforms without any hiccups.

Automation of manual processes decreases the turnaround time required to address client inquiries.
Virtual account facilities make it extremely easy to handle cash management across business verticals and cross-border business operations.

Robust digital engagement enables banks to conduct the entire client onboarding online without any hassle. Automation and blockchain offer a safe and secure technology infrastructure.

Cloud technology expands access to banking activities across devices and also offers technology integration into the client’s existing ERP solutions.

Agile frameworks enable faster product launches by reducing the time-to-market period significantly. This reduces cost and fosters the spirit of innovation.

Enterprise-level dashboard and intuitive UI provides a bird’s eye view of cash and liquidity positions. This facilitates better forecasting and business planning.

Data-driven insights help banks to learn more about their customer requirements and identify business opportunities to meet these customer demands.

Conclusion | Banking Software

As a business continues to grow and expand, the importance of corporate banking will also increase substantially. Corporate banking platforms provide the most advanced banking technology that allows banks to offer a superior banking experience.

Adapting this technology across banking functions is the only way for banks to be future-ready and have a competitive edge in the market.