A new independent research report analysing the growing prominence of the transaction banking market in Asia was launched today by Penrose Financial, the public relations consultancy specialising in financial services and capital markets, and Kapronasia, the financial services consultancy in Asia.
Asias leading banks have maintained strong balance sheets amidst the tempest of the financial crisis, and many have embraced transaction banking as a source of predictable and balance sheet-friendly revenue. The Future of Transaction Banking in Asia report identifies the key challenges for transaction bankers in the region. Key findings include:
Whilst the global economic downturn has adversely affected corporate clients, transaction bankers have seen their stock rise as banks look to build low-risk businesses.
Corporate clients are increasingly sophisticated and promiscuous in assessing their banking relationships, using the economic crisis to their advantage.
Huge opportunities exist for transaction bankers in a geographically and culturally diverse market, provided they better understand their customers and deliver superior technologically and enhanced models.
Linking banking systems to a myriad of client systems and addressing diverse standards remains hugely problematic given the extreme differences in maturity of technology across Asia Pacific
Hand-in-hand with long-term technology planning continuing to hamper development, a significant number of challenges remain in the Asian market. Those banks in the region which adapt to changes in the market will be the ones to benefit from the current complex corporate financing landscape being faced by clients in the region.
“Transaction banking has never been viewed as a fashionable part of a banks business, but this is certainly changing, says Andrew Nicolls, senior partner, Penrose Financial. Banks are looking to areas where they can grow revenues in low-risk markets, and transaction banking certainly fits this new risk profile. The findings of our research shed light on the industry’s plans to diversify, and provide insight into the future role of Asia in the global economy.”
D.C.