Digitization Strategies in Corporate Banking von Brigitte Ross

Digitization Strategies in Corporate Banking

Key Note Referat: Bosshard & Partner AG

8. April 2015 Brigitte Ross

CREDIT SUISSE | Private Banking & Wealth

Management

Corporate & Institutional Clients

Key Initiatives & Digital Innovation, SGB

September 1, 2014digitization Strategy C&IC 2

Corporate & Institutional Clients at Credit SuisseThe Ideal Partner in the Corporate Client Business

What We Do

� Advise and support 800 corporate groups, 100,000 SMEs, 3,200 institutional clients1, 2,500 financial institutions2, 300 commodity brokers, and 180 shipping companies

� Provide comprehensive coverage of all financial service needs for corporate and institutional clients in Switzerland as well as for banks worldwide

� Support the Swiss economy by providing credit, as well as services for export and import activities3

Who We Are

� More than 1,800 employees at over 50 locations worldwide

� A solid, stable revenue stream for the Credit Suisse Group

� A reliable partner for working with IB and PB to tap revenue synergies

1 Pension funds, health insurers 2 or 1,300 bank groups

3 including trade finance, FX, export finance

Key Note Anlass, Bosshard & Partner 8. April 2015


Corporate & Institutional ClientsOf Great Importance to the Swiss Economy

Stable Credit Supply

� With CHF 22.0 billion, Credit Suisse holds around 26% of unsecured loans in the Swiss

economy

� C&IC is part of a robust bank – look-through total capital ratio of 16.1%

Strong Advisory Skills

We stand out thanks to our great advisory expertise and excellent service for all the needs of

Swiss companies, pension funds and health insurers, global banks, and more

� We are one of the leading banks on the domestic Swiss market for structured and

syndicated credit transactions

� We process approximately 100 capital market and M&A transactions

� We provide CHF 2.9 billion in leasing volume for approximately 5,000 clients

Global Capability

We are skilled in handling the requirements of the global Swiss economy, e.g.:

� Trade finance volume of CHF 105 billion or approx. 42,000 transactions each year (bank

guarantees, documentary credits, documentary collections, export finance)

� Approx. CHF 160 billion foreign currency business for corporate clients each year (approx.

115,000 transactions)

� Approx. CHF 210 million in national and international payment transactions each year

Sources: David Scholl (TGGC 42)

Credit Suisse Quarterly Report, Q4 2013

C&IC Business Specialists, February 2014Key Note Anlass, Bosshard & Partner 8. April 2015

December 10, 2014C&IC, Key Initiatives and Digital Innovation, SGB 4

Trends & Market developments 1

How to improve top line results2

Achieve efficiency with digitization3

Some thoughts on technology trends for B2B banking

4

Agenda


8. April, 2015Key Note Anlass, Bosshard & Partner 5

Corporate Banking: Degree of Digital Transformation Varying betw. Segments – Relevance in Corporate Banking to Strongly Increase

Source: McKinsey

Focus of banks’ digital effortsHigh impact of digital

MNC

(>1 bn)

� Product platforms digitized for cash management

and capital markets flow products

� Trend towards multi-provider platforms

Offering mostly limited to payments and cash

management functionalities

Digital transformation ongoing for 10–15

years

Significant branch closures

Large-corp

(250 m–1 bn)

Mid-corp

(25 m–250 m)

SME

(<25 m)

Retail

� Severely affected by retail branch closures

� Retail offering without specific tailoring to SMEs

Focus today

Offering mostly limited to payments and cash

management functionalities; selected FX trading at

upper end

Markets & Trends1

Key Note Anlass, Bosshard & Partner 8. April 20158. April 2015

8. April, 2015Key Note Anlass, Bosshard & Partner 6

Credit Suisse UBS ZKB Raiffeisen Post Finance CommerzBank

DB

Self Service Functionalities

Multibank Cash Management

Liquidity Forecasting and Planning

Forex Transaction Management

Assets and Liabilities

Markets and Alerts

Research

Account Info

Primary large international players offer solutions for corporate bankinge.g., Bank of America, HSBC etc. Local banks focus on WM and retail.

100% covered 0% covered

Markets & Trends1

8. April 2015

8. April, 2015 7Key Note Anlass, Bosshard & Partner

Financial Ambitions of numerous corporate banks Digitization Is Pivotal to Overcoming Top Line and Cost Saving Challenges

PTIOPEX

Challenge ’15: Save cost to meet

cost saving targets

Credit

Provisions

Net Revenues

FC ‘15

Challenge ’15:Gaps to meet

topline targets

� Banks are facing revenue and cost

challenges, both short and mid term

� Revenue challenge

− Short term (2015), optimizing our

existing businesses will not suffice

to achieve our revenue target 2015

− Mid term (2016/2017), as long as

capital restrictions continue, new business model and digitization are essential

� Cost challenge

− Short term (2015), further savings

without threatening franchise

only feasible by adjusting

operating model

− Mid term (2016/2017), digitization is the only lever to gain further savings

Corporate Banking Financial Plan Challenges

Digitization strategy pivotal to over-coming these challenges

Markets & Trends1






4

Agenda


Growth ideasHow to overcome growth limitations in banking

PTIOPEXCredit

Provisions

Net Revenues

FC ‘15

Growth?

Corporate Banking Financial Plan

How digitization creates growth:

� Simplification & Integration

� Create disruptive models

� Provide user experience

1

2

3



December 10, 2014C&IC, Key Initiatives and Digital Innovation, SGB 10HECR Program

Portfolio CockpitInvestment Reporting at Your FingertipsiPad App for Global Custody Clients

credit-suisse.com/portfoliocockpit

Top line lever: Ex. Portfolio Cockpit for Institutional Investors


8. April 2015Key Note Anlass, Bosshard & Partner

Top line lever: Disruptive business and pricing modelsEx. Corporate Cash Manager: Premium offering for key corporate clients

Urteil der Fachjury

‘’Die Corporate-Cash-Manager-App ist eine innovative Tablet-und Desktop-Anwendung auf der Basis einer Multibank- und mobilen Cash Management-Lösung. Als First-Mover im Schweizer Corporate Banking Markt bietet Credit Suisse mit dieser Anwendung ihren Geschäftskunden den Blick auf alle relevanten Finanzzahlen, Kassenbestände usw. und lassen so zum Beispiel eine Liquiditätsplanung zu.’’

Premium solution for key corporate clients� VIP solution only offered to key clients in C&IC

� Clients have to achieve a revenue target

to benefit from this digital service

� For onboarding CHF 1,000 is charged one time

� No transaction or product charge occurs for the client

Client Potential� SMEs with revenue target around 50K direct revenues

BUSINESS SILVER

January 20, 2015� Video Corporate Cash Suite / Demo Tool 11


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4

Agenda

8. April 2015Key Note Anlass, Bosshard & Partner


Digitization has by far the highest potential to save cost Industralization, off-shoring/near-shoring etc. can not reach efficiency impact of digitization

PTIOPEXCredit

Provisions

Net Revenues

FC ‘15

Efficiency?

Corporate Banking Financial Plan

How digitization saves cost:

� Self admin and self service

� Digital onboarding /e-signature

� Reduction of fragmented solutions

1

2

3


8. April 2015

8. April 2015 14Key Note Anlass, Bosshard & Partner

Support Interfaces

Online ToolsElectronic

Interfaces

Simplification & IntegrationClients are confronted with fragmented online solutions. Especially in corporate

banking: Example Credit Suisse Institutional Clients

Corporate Service Online Channel Login4

PortfolioNet/Cockpit

CLS

FactoringNet

My Custody

Reuters

1Accounts

Cash Management

Payments

Safekeeping

Trading

Stock Option Plan

Direct Trade Finance

MMCM5

eATS/MySolutions

1

1

1

1

1

2

1

3

2

2

1

2

3

Bloomberg 3

EAM Exchange/EAMNet 2

Trading Screen

Securities Expert

WebMax

Glox, Xkyte, GL Trade

3

2

3

3

Deskto

p T

oo

ls

Connectivity

SWIFT File Act/FIN

DirectExchange

SecureMail

SmartConnect

EuropeConnect

FTP

DTA

A

A

A

A

A

A

A

DirectLink A

SWIFT Score1

Bolero1

PSN

PSN Light

FIX Direct

A

A

S

S

A

Fax A

A2/S3

Acco

un

ts a

nd

Paym

en

t d

ata

Tra

din

g

Bloomberg FIXReuters (ROR/RTEX)

FIX

A

A

Sec.

data

Tra

d

e F

in.

Tra

din

g T

oo

lsD

irectN

et

Financing

Asset Services

and Trading

Cash Mgmt.

Accounts

Payments

1 Nur für Handelsfinanzierungen. 2 Asynchron. 3 Synchron.4 1 – Single DirectNet Login; 2 – DirectNet based Login; 3 – Specific Login.5 Mobile Multibank Cash Management.

See details in Appendix 2.


8. April 2015

October 30, 2014Implementation of C&IC Digitization 15

A portal solution simplifies access for clients andand enables new business

IntegrationSelf Administration

Self

Investigation

E-F

orm

alit

ies

E-SignatureData Mining

Self ServiceSimplification

Sin

gle

sig

n-o

n

E-Vault

Clie

nt

Experience

Business

Intelligence

� Video Credit Suisse Corporate Banking Multichannel Dashboard


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4

Agenda



Technology Strategy for Corporate Clients directs to Windows 10Corporate clients want integrated solutions. Desktop and tablet in one is great solution.

Trend: Multidevice capability Trend: Integration

Client Groups

Retail and Private Clients Corporate and Institutional Clients

Desktop/Laptop

MAC OS Android Win 8/8.1 MAC OS Android Win 10

All-in-one

Tablet

Smart phone

Only for alerts

or warnings

Only for alerts

or warnings

Only for alerts

or warnings

��

��

��

��

��

Some thoughts on technology for B2B banking

4



Clients are should dictate the directions for digitization…

Corporate Clients are with the banks that support them to be successful in their business

� Always start with a strategy � Involve your clients from the beginning in your digitization efforts

� Apply agile methods that allow to constantly review results with your clients

� Also review solutions in friends & family pilot phases� Align your internet digital marketing strategies with your digital offerings

Conclusion



And don’t forget: In 2020 digital natives will be the majority!Its time to move on….

Corporate Clients are seeking for the banks that help them to be successful in their business

Conclusion



It was a pleasure to be with you!

Please contact me for further information and questions:Brigitte Ross I LinkedIn

Conclusion

Key Note Anlass, Bosshard & Partner

View profile www.linkedin.com/pub/brigitte-ross/51/a04/a45/en

8. April 2015

Digitization Strategies in Corporate Banking von Brigitte Ross

Economy & Finance

Transcript of Digitization Strategies in Corporate Banking von Brigitte Ross