The survey reveals that Indian corporates are looking for banks that can cope with open account trading and engage at both ends of the supply chain, and are essentially looking at banks that have a large footprint in global trade, with an expansive branch network across geographies. The more technically savvy Indian corporates, meanwhile, are seeking open account platforms that enable buyers and sellers to streamline their cross border purchase orders and invoice management processes.
Respondents in China indicate a strong preference for local banks, with 85% agreeing that “local banks are more committed to local trade” and the same percentage agreeing that “local banks should not allow global players to push them out of the market”. Over the long term, however, this loyalty may be eroded if the local banks fall too far behind in their provision of integrated treasury services.
The survey results provide further evidence that Korean companies are way ahead of their local banks in their thinking and show a need for local banks to offer integrated treasury services. Stemming the loss of business to foreign banks will require local banks to improve their offering with respect to seamless treasury services.