3 key trends in correspondent banking
Following the release of our white paper ‘Re-drawing the Map – The changing landscape of cross border banking and payments’, Banking Circle caught up with some of the contributors to the report to find out how their strategies were evolving to fend off competition from new entrants, while meeting client demand.
Simple, digital, global
Ireti Samuel-Ogbu, Head, Payments and Receivables, Citi, says that the market must shift toward becoming more simple, more digital, and more global. As many new companies in the cross border ecosystem are digital-first, and tend to grow very quickly when compared to their traditional counterparts, deploying agile solutions that leverage their globality will be paramount for tier one banks.
Marc Recker, Global Head of Institutional Market Management, Deutsche Bank, explains that corporates are demanding increased transparency and faster transactions, in part, due to how they are able to make payments in their private lives. This has put increased pressure on the banking industry, which has responded with the SWIFT gpi initiative.
Smaller institutions primed to win market share
Geir Gundersen, VP Payments, SR Bank welcomes collaboration between banks and financial utilities to solve issues with disintermediation, as it allows for expansion into markets that have previously been difficult to enter due to differences in payment infrastructure. While not able to compete on a truly global scale, new innovations in payment technology is helping small and mid-sized banks to capture market share in their region.