Permanent low interest rates, high regulatory requirements, advancing digital transformation and changing customer expectations put the corporate banking business of banks and savings banks under pressure. Even though corporate banking has proven to be a relatively stable anchor for profits over recent years—not least because of the permanently low risk costs—the business models are undergoing major changes:

• Customers expect more than the traditional financial intermediary function of banks. Banks are searching for relevant added value for their corporate clients in order to secure the customer interface and remain a relevant strategic partner for corporate clients.
• The profitability weighting of product groups is shifting: the traditional “lend to cross-sell” approach is becoming more and more difficult.
• Digital and digitally-personalized access channels increasingly supplement personal advisory services.
• Data management and so-called “sales analytics”, which is derived from the former, are highly important for the effectiveness of sales models.
• The platform economy will also be a crucial topic in corporate banking.
• Fintech companies develop highly interesting, specialized offers and are thus relevant both as competitors and as interesting cooperation partners of banks and savings banks.

All this is happening in a market phase in which the market “wallets” are relatively stable, but unlikely to keep growing. Still, all banks and banking groups are planning for growth—sometimes even major growth—particularly in corporate client business, which significantly fuels the competitive environment and margin pressure. Combining the shaping of the necessary transformation process with the operational growth pressure in business segment planning poses major challenges to the responsible parties for corporate banking.

Speakers at the 2018 Corporate Banking Day included:

• Olaf Hemker, Chairman of the Board, Landessparkasse zu Oldenburg
• Dr. Jan-Philipp Gillmann, Divisional Board Member in the Corporate Clients business segment, Commerzbank
• Hans-Joachim Dörr, Managing Director, Trumpf Financial Services
• Jens Sträter, Partner, zeb