Product Reviews
Transaction Banking is a product driven business. We can help drive growth by identifying the growth levers and opportunities relevant to specific product families or individual products. From enhancing current products, developing new products, or simply improving the positioning, sales, and pricing of existing products in the market, there is often a significant growth opportunity that can be captured.
We work across the full range of Transaction Banking products and value added services to accelerate growth and improve your offering including:
Liquidity & Deposits
Deposits are an important part of the Transaction Banking relationship and an increasingly important self-funding source for banks.
We review corporate and financial institution portfolios to determine where additional operating and institutional deposits can be captured.
This can include current and operating accounts, term deposits, institutional deposits, cash concentration, pooling, and broader liquidity management opportunities.
The work typically covers the size of the potential deposit pool, priority clients, existing wallet share, and the approach required to win the business, including investment in product development.
Where relevant, we also look at how deposit origination is managed across Transaction Banking, Relationship Management and Treasury, including pricing, ownership, and pipeline management.
Payment & Collections
Payments and Collections are the bread and butter of a Transaction Bank’s cash management services. Capturing these flows generates liquidity and operating balances. These balances are both a key source of self funding for a bank’s loan book, but also a major driver of profitability. Moreover, operating balances assist in helping a bank meet its Liquidity Coverage Ratio, a key regulatory requirement and closely watched measure of a bank’s solvency.
We work with your Relationship Managers and Product teams to identify where there is an opportunity to capture more payment and collection flows at a client, industry or market level, and then develop plans to target these opportunities. This can include domestic payments, cross-border payments, and specialist collection and reconciliation services.
Where there are gaps in the existing product set, we can also help develop investment proposals and plans to enhance or expand access to key payment rails or collection capabilities.
Trade Finance and Working Capital can provide significant opportunities within existing corporate relationships.
We review client portfolios, trade flows and supply chains to identify opportunities across traditional Trade Finance, Guarantees, Supply Chain Finance, Receivables Finance and Working Capital.
Where there are gaps in the product set we can also help develop plans to enhance or expand access to key trade products and services across both Documentary Trade and Open Account Trade product sets.
We also look beyond the individual Trade product.
Trade activity can generate cross-sell into Cash Management, Payments, Liquidity and Transactional FX. Understanding these flows provides a clearer view of the overall Transaction Banking wallet and where the bank should focus its effort.
Trade Finance & Working Capital
Project Banking & Escrow
Project Finance, infrastructure, and corporate transactions can generate substantial Transaction Banking flows over many years.
The opportunity is to identify and position for those flows early.
We work with banks to determine how Transaction Banking can be positioned alongside Project Finance, lending, advisory and relationship coverage.
Depending on the transaction, the opportunity can include project and operating accounts, Escrow and controlled accounts, Cash Management, deposits, Guarantees, Trade Finance, Working Capital and Foreign Exchange.
Securing the operating and control accounts at the outset can establish a broader, longer-term banking and more profitable relationship than the financing alone.
Transactional FX
Transactional FX or TBFX can arise from the active or passive conversion of payments, collections, and trade flows in a foreign currency to a corporate client’s functional currency. The opportunity to automatically capture these FX conversions as part of the underlying payments, collections or trade flows is often overlooked but can be a key source of revenue growth.
We work with Product Managers to determine how FX conversions can be embedded into all types of cross-currency flows at a product level, either automatically at the back-end or via front-end channel initiation by clients. Apart from looking at the mechanics of how conversions can be handled, we can also help develop differentiated pricing strategies for large clients and flows versus nuisance transactions which tend to be less price sensitive.
Channels
How clients access Transaction Banking services can be as important as what they access. Over the years, the ways in which services can be accessed has proliferated and now includes direct SWIFT access, web banking, mobile banking, dedicated host-to-host integration, APIs, and third party treasury and trade platforms.
Understanding how your clients prefer to connect with the bank and enabling products and services on the different channels can be a key source of growth and stickiness in the relationship. Moreover, improving the client experience through client centric journeys, value added information, and self service tools via web, mobile, API, and third-party platforms can be a distinct source of competitive advantage.
We work with our Transaction Banking clients to define their channel strategy, advise on the steps to enhance or develop new channels, and then identify and help target potential revenue opportunities flowing from existing or proposed channel investments.
Digital Solutions
A major area of growth in Transaction Banking is combining various products and services together with APIs and third party fintech offerings to create new packaged digital solutions.
We work with your Relationship Managers and Product teams to evaluate the demand for value added digital solutions amongst your clients, sectors, and markets. We then identify the types of solutions that could be developed, identify any gaps in the existing product set, define the technical capabilities or fintech partnership required to deliver the solutions, and then build a plan to develop and launch these new packaged solutions in the market.
Industry Solutions
Different banks tend to have strong expertise in different industries or sectors. This knowledge can be leveraged to create unique industry solutions that can position a bank to capture more of the Transaction Banking flows within an industry ecosystem.
We work with your sector coverage teams and Product Team understand the key industries and clients you are targeting, the players across the industry, and the opportunity to capture business flows between different players within the industry ecosystem.
Once we have identified the key flows you wish to capture, we work with your teams to develop the relevant solutions including the required products, technical capabilities, and fintech or industry partnerships needed to deliver the solutions. We then help you to build a plan to develop and launch these new industry solutions in the market. The solutions might involve a combination of different products and services from both the cash management, trade, and working capital product families.
Treasury & Working Capital Advisory
Clients appreciate banks that go beyond the “product push” and seek to really understand their business and treasury needs. Developing an advisory capability that enables you to share best practice and deliver tailored solutions for corporate clients is a great way to win business and accelerate growth.
We work with your Coverage and Product teams to understand the challenges faced by your clients and the areas that would make sense playing in.