The global demand for corporate banking has expanded considerably in recent years, and is projected to increase with growth in economic activities and business expansions. Corporate banking is a form of business banking that provides a range of financial facilities offered exclusively to companies, ranging from global conglomerates to medium-sized regional enterprises. In addition, treasury services and cash-management functions are some of the most popular corporate banking services that are generally provided by commercial banks. Moreover, companies use these facilities to transform currencies and operate their regular funds and capital expenditures. Corporate banking facilities provide credit services & loans, commercial real estate services, business valuation, real estate research, equity, and debt structuring, and others.
COVID-19 scenario analysis:
- The pandemic has a severe impact on the banking industry with rise in bad loans, credit & recovery restrictions, moratoriums, and others. Thus, several commercial banks have witnessed a surge in digital transactions which are largely preferred by corporate.
- Disruptions in business value chain have led corporate banks to reassess their banking business models.
- Moreover, commercial banks have witnessed a higher flow of credit approval requests from small and medium-sized enterprises.
- However, huge demand for new or rebalanced business credit regulations had a greater pressure on lending operations for banks in the market.
Top impacting factors: Market Scenario Analysis, Trends, Drivers and Impact Analysis:
Corporate companies are actively engaged in business activities to maintain financial status in organizations and these requirements are largely fulfilled by corporate banks. This, as a result has become one of the driving factors behind the market growth. However, several corporations & organizations prefer reputed banks & financial institutions over smaller financial institutions. Thus, tougher competition from major banks, FinTech disruptions facilitating alternative sources, and highly regulated environment hinders the market growth.
Conversely, Asia-Pacific region is experiencing growing economic activities, business expansions than developed markets. Such emerging countries have become target segment for big businesses and thus, creating lucrative opportunities for corporate banking sector in the region.
The global corporate banking market trends are as follows:
Adoption to disruptive technologies:
FinTech and artificial intelligence disruptions have an immense impact on clients and their connections with the banking sector, as the consumers demanding faster services and instant payment offerings. Thus, in order to overcome such needs &challenges, banks are partnering with Fintech companies and implementing integrated technologies such as artificial intelligence and blockchain technologies into the core banking systems. For instance, HSBC Bank, which is a major corporate banking institution, is effectively focusing on digitizing a number of its existing services as it seeks to strengthen its underlying client experience. In addition, corporate banks are using optical character recognition (OCR) tools to read PDFs and transmit data to front end systems instantly, thus increasing productivity, minimizing errors, and enhancing better U.S.er experience.
Integrating ESG risk factors into investment decisions:
Environmental, social, and governance (ESG) refers to the three key criteria for measuring the sustainability and socioeconomic impact of a corporate & business investment. Such parameters help assess company's potential financial results easier. The main objective of integrating ESG risk factors is to execute environmental & climatic disruptions, and enhance the business model of corporate firms with lower impact environment. In addition, with lower effect on environment by business, the financing will be implemented at lower interest rates. Moreover, regulators such as the European Union, Financial Stability Board's restrictions on Europe based corporate banks have influenced banks to integrate ESG factors into their business activities.
Key benefits of the report:
- This study presents the analytical depiction of the global corporate banking market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global corporate banking market share.
- The current market is quantitatively analyzed to highlight the global corporate banking market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed market analysis based on the present and future competitive intensity of the market.
Questions answered in the corporate banking market research report:
- Who are the leading market players active in the corporate banking market?
- What would be the detailed impact of COVID-19 on the global corporate banking market?
- What current trends would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the global corporate banking market?
- What are the projections for the future that would help in taking further strategic steps?
Corporate Banking Market Report Highlights
By End User
Key Market Players
Deutsche Bank AG, Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley, Credit Suisse Group, Goldman Sachs Group, Inc., DBS Bank, Bank of America Corporation, UBS Group, Wells Fargo & Company