Transaction Banking

We help firms anticipate changes in the buying behavior of their clients. Our data on headcount and total rewards structures in transaction banking offers insights into how competitors are changing. Our team helps clients understand what it means and costs to maintain competitiveness.

Challenges in the Current Landscape

Transaction banking is a relatively novel term in corporate and institutional banking. It can encompass different services at different banks, but for our purposes includes cash payments from customers to suppliers, trade finance, and corporate trust services, such as acting as trustee to holders of securities or providing issuers with paying agency services to calculate and distribute interest payments on debt issues.

Among the most important of these services are payments and trade finance. Payment, particularly at the retail level, is being revolutionized by the rise of real-time retail payment services (RT-RPS) supplied by financial market infrastructures (FMIs). This is obliging banks to develop overlay services such as enriched invoices that add value for retail and corporate customers to basic payments services for which they can no longer charge.

Similar developments are evident in trade finance, where letters of credit that guarantee payment by the buyer to the seller on production of evidence that the goods have shipped and bank guarantees in which the bank agrees to pay the seller if the buyer defaults are not used by corporates as readily as in the past. This is also affecting revenues from buying trade bills or invoices at a discount and collecting the full sum when it is due, and from cross-selling cash payment and foreign exchange services to trade finance clients – and forcing trade finance banks to develop new on-line financing and payment products.

Banks that used to profit from intermediating the risks that buyers will not pay sellers in domestic and international transactions, and from servicing the transactions themselves, now find themselves competing with new entrants empowered by digitization and standardization. In this challenging environment, understanding how client behaviour is changing, and reallocating financial and human resources to meet their changing needs and expectations, is essential to survival and success.

Data-Driven Compensation and Competitive Intelligence

We work with clients to provide strategic insights and up-to-date information enabling clients to:

  • Benchmark pay levels by location and probe pay levels by payments, trade finance, and corporate trust
  • Understand the cost of hiring relevant, needed talent
  • Observe patterns in consumption of traditional products, customer adoption of new products, and changes in customer behavior
  • Analyze competitors and market trends to stay ahead of the curve
  • Measure pay-out variations across payments, trade, and FX

Transaction Banking Compensation and Customer Intelligence

Our team provides surveys that help that provide comprehensive compensation and customer satisfaction data. Our surveys include:

  • Compensation in Corporate Trust
  • Compensation in Retail Payments
  • Compensation in Trade Finance
  • Compensation in Transaction Banking
  • Customer Satisfaction in Retail Payments
  • Customer Satisfaction in Trade Finance