by George Nast, Head of Sales and Client Management, Transaction Banking, Standard Chartered Bank
In an environment of considerable regulatory and market uncertainty, and growing competition, banks face a dilemma. How do they create certainty for their customers, and differentiate their offering by adding value in new ways?
Perspectives on transaction banking
Transaction banking is a core business for many regional and international banks, as collecting cash, paying suppliers and financing trade shipments is fundamental to clients’ business. As these services are indispensable, banks often become complacent, treating these relationships as ‘sticky’ and a basic service from which to cross-sell other solutions.
Corporate treasurers often do not give transaction banking the same level of attention. Although important and essential to day-to-day operations, payments, collections and trade finance are often considered commoditised, undifferentiated products. As a result, senior managers pay attention to them only in the event of business interruption, poor service or when a mandate is due for renewal. This contrasts with services such as M&A, equity, or long-term finance, which are considered more strategic and have more board level attention.