The commercial banking industry faces daunting challenges. Operational costs continue to rise. Corporate clients seek convenience and personalized products and services. Cybersecurity is a major concern as more and more bank processes become digitalized. Compliance with wide-ranging open banking regulations is mandatory. The entry of BigTechs and other players is heating up competitive pressure. Therefore, it is essential for banks to transform and adapt to the changing business environment. Read our Top Trends in Commercial Banking: 2020 report for analyses of the initiatives, new solutions, and trends expected to shape the commercial banking ecosystem in 2020 and beyond.

1. Top Trends in
Commercial Banking: 2020
December 2019
Link: https://www.capgemini.com/top-
trends-in-2020/

2. 2© Capgemini 2019. All rights reserved |Commercial Banking Trends 2020 | December 2019
Source: Capgemini Financial Services Analysis, 2019
Intelligent bank
Deep customer insights
Data-driven compliance Emerging technologies help banks heighten cybersecurity effortsTREND 6
Banks use Artificial Intelligence (AI) for anti-money laundering (AML) complianceTREND 5
Virtual accounts help corporations self-manage transactions efficientlyTREND 4
Banks adopt cloud services to increase operational efficiency and scalabilityTREND 3
Banks adopt blockchain technology to make cross-border trade efficientTREND 1
Real-time payments drive cash and liquidity managementTREND 2
Open bank
Banks collaborate with FinTechs to serve small- and mid-size enterprises betterTREND 8
Banks build developer portals as part of Open X adoptionTREND 7
Top Trends in Commercial Banking for 2020 by Capgemini

3. 3© Capgemini 2019. All rights reserved |Commercial Banking Trends 2020 | December 2019
Source: Capgemini Financial Services Analysis, 2019
Trade finance
blockchain
consortia
Voltron
Marco
Polo
Batavia
We.Trade
HKTFP
Automation improves
operational efficiency
Real-time
communication and
tracking of goods
Implications
Payments settled
faster
Better transparency
reduces fraud/default
risks
Transactional costs
reduced -
intermediaries
eliminated
Trend 1: Banks adopt blockchain technology to make cross-border trade efficient
Top Trends in Commercial Banking for 2020 by Capgemini
Intelligent
Bank
Open
Banking
Deep
Customer
Insights
Data-
Driven
Compliance

4. 4© Capgemini 2019. All rights reserved |Commercial Banking Trends 2020 | December 2019
Real-time payments drivers
Corporate clients’ intraday liquidity
requirements estimated manually
Reusing internal liquidity
is inefficient
Inability to mobilize and manage
cash
Existing payment mechanisms have
longer clearing windows
Implications
Real-time methods improve cash and
liquidity management
Predictive balances can ease
clients’ liquidity issues
Personalized short-term credit offers
at tailored price points
Source: Capgemini Financial Services Analysis, 2019
4© Capgemini 2019. All rights reserved |
Trend 2: Real-time payments drive cash and liquidity management
Top Trends in Commercial Banking for 2020 by Capgemini
Intelligent
Bank
Open
Banking
Deep
Customer
Insights
Data-
Driven
Compliance

5. 5© Capgemini 2019. All rights reserved |Commercial Banking Trends 2020 | December 2019
Source: Capgemini Financial Services Analysis, 2019
Access to a shared pool of
configurable computing
resources can increase a bank’s
ability to innovate by enhancing
agility, efficiency, and productivity
Efficient cloud solutions can ease
traditional technology risks, such
as capacity, redundancy, and
resiliency concerns.
Traditional IT infrastructure capex
investment reduced as banks more
efficiently manage computing
capacity to satisfy client demand
Agile
innovation
Risk
mitigation
Cost
benefits
Trend 3: Banks adopt cloud services to increase operational efficiency and scalability
Top Trends in Commercial Banking for 2020 by Capgemini
Intelligent
Bank
Open
Banking
Deep
Customer
Insights
Data-
Driven
Compliance

6. 6© Capgemini 2019. All rights reserved |Commercial Banking Trends 2020 | December 2019
Corporate treasury and accounting
departments struggle with inefficient cash
management methods
Corporate clients seek greater control over
their money with quick access to
receivables while extending payables
In an experience-driven ecosystem, virtual
account management (VAM) services are a
differentiating value proposition for banks
VAM services can be s a source of non-
interest income, especially in an era
characterized by shrinking interest income.
6© Capgemini 2019. All rights reserved |
Banks can access
valuable structured
client data, which
they can then
analyze to generate
business insights
Source: Capgemini Financial Services Analysis, 2019
Trend 4: Virtual accounts help corporations self-manage transactions efficiently
Top Trends in Commercial Banking for 2020 by Capgemini
Intelligent
Bank
Open
Banking
Deep
Customer
Insights
Data-
Driven
Compliance

7. 7© Capgemini 2019. All rights reserved |Commercial Banking Trends 2020 | December 2019
US$800
billion to
$2 trillion
US$26
billion
Estimated money
laundered annually
(in current US$)
Penalties collected by
regulators in the last
decade for AML/KYC
violations
Source: 1) Capgemini Financial Services Analysis, 2019
2) UNODC, “Money-Laundering and Globalization,” https://www.unodc.org/unodc/en/money-laundering/globalization.html, accessed October 2019.
3) Fenergo press release, “Global AML/KYC & Sanction Fines,” September 26, 2018, https://www.fenergo.com/aml-kyc-sanction-fines.
Implications
Fewer false positives drive
up operational efficiency
Increased effectiveness
bolsters regulatory
compliance
High scalability with less
human intervention
7© Capgemini 2019. All rights reserved |
Trend 5: Banks use AI for anti-money laundering compliance
Top Trends in Commercial Banking for 2020 by Capgemini
Intelligent
Bank
Open
Banking
Deep
Customer
Insights
Data-
Driven
Compliance

8. 8© Capgemini 2019. All rights reserved |Commercial Banking Trends 2020 | December 2019
Biometrics
Blockchain
Artificial
intelligence
Incorporate a digital and physical
dimension to customer authentication,
making it difficult for cyber criminals to
replicate customer data
Inherent features augment security:
data immutability, built-in
transactions’ audit trail, greater
transparency
Detects breaches more accurately
and at lower costs; responds to
breaches faster
Source: Capgemini Financial Services Analysis, 2019
8© Capgemini 2019. All rights reserved |
Banks that
leverage new
technology and
innovations
can boost
brand
reputation and
client trust
Trend 6: Emerging technologies help banks heighten cybersecurity efforts
Top Trends in Commercial Banking for 2020 by Capgemini
Intelligent
Bank
Open
Banking
Deep
Customer
Insights
Data-
Driven
Compliance

9. 9© Capgemini 2019. All rights reserved |Commercial Banking Trends 2020 | December 2019
Enable a seamless
and integrated
experience for
commercial clients
Enhance client
experience
and loyalty
Portals are a cost-
effective and
speedy path to
innovation
Catalyst for banks
to fill key positions
in the future
ecosystem
Source: Capgemini Financial Services Analysis, 2019
Future-focused banks are turning regulatory
compliance into a strategic competitive
advantage that balances compliance costs with
new market opportunities and revenue streams
Trend 7: Banks build developer portals as part of Open X adoption
Top Trends in Commercial Banking for 2020 by Capgemini
Intelligent
Bank
Open
Banking
Deep
Customer
Insights
Data-
Driven
Compliance

10. 10© Capgemini 2019. All rights reserved |Commercial Banking Trends 2020 | December 2019
Implications for
FinTechs
Fast turnaround time and
minimum documentation
Flexible and competitive
interest rates
Loan repayment flexibility
Relaxed credit profiling
Implications for
Commercial Banks
More cross-selling and up-
selling opportunities by
iterating and expanding
product offerings to
middle-market business
customers
Banks can focus on core
offerings while
simultaneously offering
innovative and digital
products and services to
corporate clients through
FinTechs.
Source: Capgemini Financial Services Analysis, 2019
Top Trends in Commercial Banking for 2020 by Capgemini
Intelligent
Bank
Open
Banking
Deep
Customer
Insights
Data-
Driven
Compliance
Trend 8: Bank/FinTech partnerships pay off in new services for small and medium
businesses

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