With global transaction banking revenues rising to $509bn by 2021 at 10% CAGR accounting for 30-40% of corporate banking revenues, transaction banks’ aspirations to become and remain principal bank of each corporation are justified by the attractive and sticky revenue. Many regional and smaller banks – and even some bigger ones – are looking to offer a range of products that compete with best of breed competitors that spans the whole of the corporate value chain and is delivered through all channels. This is the passport to a bigger share of half a trillion dollars.

Because of increasing globalization, corporations increasingly need more consistent and more centralized transaction banking services, in product, in process and in experience. At the same time, banks must comply with dynamic regulations, provide all services agnostic of channel, expand self service and enhance cross border capability, add new products and services on the fly and streamline and integrate disparate back office systems.

With this globalization comes an expectation of greater value from banking partners in terms of solutions that draw on multiple traditional products, tailor-made products, multi-bank aggregation, interaction across business activities such as payments, trade, cash and liquidity while maintaining strict, central control over access.

This is why many corporations are not happy with their banks. Despite over 300 years of operation, banks are still nowhere near operationally efficient. STP rates in transaction banking can still be surprisingly low.

• 58% of corporate treasurers choose their transaction banking partners based on financial strength
• Worldwide the transaction banking customer satisfaction index is less than 45%
• 40% of European corporate treasurers are ready to end the relationship with non-performing banks
• Average STP rates are in dangerously low ranges – less than 60%
• 90% of corporate banks have already created a transaction banking plan for their near future activities
• 63% of banks have mobile channel development in their strategies for the next three years
• 47% of banks have created a transaction banking group by combining cash management and trade finance
• 57% of transaction banks have prioritized dealing with regulation highest

Never more than now has choosing the right technology partner played a more vital role for banks to stake their claim in today’s transaction banking gold rush. Technology vendors must offer a comprehensive solution that covers the entire corporate financial supply chain from payments to treasury management, in a fully integrated manner, supporting bundled and cross-product solutions, with omnichannel access, connected to the ERP, capable of aggregating multiple bank information, leveraging efficient shared services and providing uniform entitlement and authorization.  Not only is delivering comprehensive reporting important: real time analytics are crucial. In short - reliable, integrated, cost-effective transaction banking worthy of a corporation’s principal bankers.