Harmony El Kherdali, Jürgen Moormann, Francesco Pisani
After the retail segment, now the field of corporate banking is under pressure to innovate its business models. A combination of a tightened regulatory environment, strengthened competition, much-needed investments into digitalization, and the risk of an overheating economy are posing new challenges to this segment. Hence the question of how future business models for corporate banking should look like arises. In this article, four scenarios are proposed, which are based on two dimensions
that are believed to have an impact on the business models in corporate banking. These dimensions are (1) the level of cooperation with fintechs (start-ups bringing together new business models centred on innovative technologies and financial services), and (2) the level of acquired
digital capabilities. For each scenario a business model is developed and discussed. Our analysis reveals that corporate banks will have to get up to speed with fintechs for their survival, while cooperating with them is an encouraged practice going forward. By adopting customer-centric
business models, transforming their culture and mindsets, as well as simplifying their legacy systems, corporate banks might be able to convert their challenges into opportunities.