80% Indian corporate banks likely to leverage Cloud by 2024: IDC Report

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Around 80 percent of corporate banks in the country are likely to leverage cloud for trade finance and treasury workloads by 2024, said a new IDC report on Friday.

In a bid to counter the uncertainty of the pandemic by 2023, 60 percent of corporate banks will be revisiting credit scoring models and prioritising an open data strategy for improving loan portfolio health, revealed the report.

In comparison to the developed economies, India’s corporate banking sector is still in its budding stage as far as product and service offerings are concerned.

However, the application is being tested on twin counts of increasing digitalisation of the Indian economy and globalisation of Indian companies, which are bringing in speedy sophistication in operations and engagement.

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“In India, corporate banking has remained undelivered during the last couple of years, but going forward, the scenario might change as the threat of the Covid-19 pandemic dwindles and the prospect of India playing a key role in the revival of global supply chain environments gain momentum,” said Ganesh Vasudevan, Research Director, IDC Financial Insights Asia/Pacific.

The report states that the pandemic has ensured that the CFO should focus on liquidity. In response, 55 percent of corporate banks will invest towards predictive liquidity management and 60 pe cent will upgrade data and connectivity capabilities by 2024 in the country.

“Traditional brick-and-mortar businesses are increasingly moving to B2B sales online, and corporates expect their bankers to understand the workflow to provide value-added solutions like seamless counter-party onboarding, provide a credit assessment, and finalize the settlement terms without using the traditional invoicing and collection process,” Vasudevan commented

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