Establishing corporate independence from banks
Martin Bellin, Founder and CEO of BELLIN, explains how technology is revolutionising treasury management and helping corporates to achieve independence from banks…
How is technology changing the landscape in corporate treasury?
It is more than just a question of technology. That is a tool, but client expectations are changing and that means the financial business will also have to change which requires a completely new way of thinking.
The relationship between banks and corporates is changing: In the past, corporates had to comply with a bank’s stipulations, however in the future, it will be down to the bank to convince a corporate that it is the best organisation to handle its business.
To what extent are corporates looking to become independent of banks?
This is a key trend, which has its roots in the financial crisis of 2008. Before then, banks were considered safe havens, but now corporates have to take into account the fact that banks may not be as secure as they once were.
Corporates must ensure they are prepared when a bank struggles financially. That means that corporates are trying to establish independence from banks and working to employ a corresponding set-up. That starts with processes that can be commoditised, and that definitely applies to cash management and the entire payments industry.
In the past, corporates used banking portals to process payments, but that practice is coming to an end with the realisation that they can use apps, provided by fintech companies like ourselves, that can process all their payments and consolidate their banking portals. Payments processing has become commoditised and, as a result, banks are going to withdraw from front-end vendor technology and instead concentrate their offering on complex products that require customisation and deep client knowledge. That will be their business in the future, while fintech companies handle everything that can be commoditised at the front end.