Banks such as HSBC, Citi and Standard Chartered have been leaders and the major providers of treasury management to large Indian companies, but because of an increase in capital and compliance requirements, the larger banks have become more selective in who they work with, which has led to domestic banks getting stronger.
“Indian Corporate Banking: Local Banks on the Rise”, a recent report by Greenwich Associates has highlighted this and has shown how big corporate organisations are using banks such as HDFC, State Bank of India and ICICI Bank increasingly.
Greenwich Associates consultant Gaurav Arora said that the gap between domestic and top banks is closing. “At the very same time, domestic banks have been closing the quality gap and winning not only spots on Indian companies’ bank lists, but also coveted ‘lead relationship roles,” Arora said.
ICICI has recently gained a top spot in cash management, trade finance and FX, just under HSBC and Citi on the league tables. Alongside this, State Bank of Indian has also secure third place in the lending and international trade finance market, while HDFC is the leader of the domestic cash management network, based on penetration among the largest Indian organisations.
Paul Tan, Greenwich Associates consultant, revealed that global banks like Deutsche Bank and Bank of America Merrill Lynch will see India as an important market within the ever-changing Asian financial industry.
“The global banks continue to dominate key spaces, like regional/global liquidity management, treasury FX and the capital markets businesses. In the flow businesses, we see the leading Indian banks (and the next tier of up-and-coming local competitors) starting to dominate the domestic banking landscape,” Tan commented.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.
The EU and US’ shift in accounting standards may bring balance sheet losses and increase credit risk, according to James Elder, director of risk services at Standard & Poor’s (S&P) Global.