New Survey Finds That 44% of Corporate Banking Clients Would Switch Banks for Better Service in Bank Account Management
CAMBRIDGE, Mass. – September 9, 2009 – Pegasystems Inc. (NASDAQ: PEGA), the leader in business process management, and Finextra, the respected information source for the financial technology community, have found that 63% of banks recognize that delivering Electronic Bank Account Management (EBAM) services is a great opportunity to win new clients and better serve existing ones. However, the recent survey which the organizations conducted also revealed that due to a lack of agility in bank IT departments, over 45% of them believe that it will take more than a year to undertake the necessary process and system reengineering to enable it.
The research results outline the key challenges both banks and corporate clients face in the areas of account opening and management. Both corporations and banks still utilize very manual and paper-based processes, creating an inefficient, error-prone environment. SWIFT, the Society for Worldwide Interbank Financial Telecommunication, and a small group of leading banks, corporations and IT vendors, have been working to help address the problem through the development of electronic bank account management standards.
“Through our work on the EBAM steering committee, and our long history in providing BPM capabilities to the Corporate Banking community, we understand the frustration of banks and corporates who struggle with the manual and cumbersome process of opening, closing and maintaining bank accounts,” said Adi Reske, Senior Product Marketing Manager for Financial Services at Pegasystems. “On one hand, corporates need a better handle on their accounts and a standard way to communicate with their banks in this area. On the other, banks are finding it hard to respond quickly to initiatives like EBAM, due to lack of agility and IT resources.”
The survey also found that more than 40% of corporate clients are willing to move some of their business to other banks for better customer service, and 15% expect all of their bank providers to offer EBAM services in the short term and are adding it to all of their new RFPs.
“With the right technology to deliver business processes and rules, solutions like EBAM, or even bigger solutions around on-boarding, shouldn’t take more than three to six months to implement,” Reske added.
“The survey results confirm the preliminary findings we collected in late 2007, which triggered the launch of the EBAM project at SWIFT, which was based on requests from members of our community,” said Richard Delvaux, Senior Corporate Market Manager at SWIFT, in charge of the project. “Although the topic is not new, it remains very high on everybody’s agenda. Best evidence is the tremendous support our EBAM working group has received from the community of banks and corporates, enabling us to move quickly to deliver the first EBAM XML standard messages in less than one year. And this is just a start; immediate next steps to collect all expected benefits will include adoption and integration, on bank and corporate sides. Therefore, the role of vendors is critical. This is why it was key for us to involve them in our project in its early stages.”
For a copy of the report, please visit https://www.pega.com/link/EBAMreport.
Finextra Research is the leading newswire and online community for the global financial technology industry, with 3 million page views and 110,000 unique visitors per month. More than 26,000 financial technology professionals worldwide receive our free daily and weekly e-mail newsletters. Finextra additionally operates its own conferences and exhibitions on a range of topics under the Finexpo brand, and collaborates with the Euro Banking Association to produce the annual pan- European payments conference EBAday. Finextra is also the official online news vendor for Swift’s annual financial technology conference Sibos. Finextra additionally hosts an online professional networking and blogging service for the global financial technology industry – www.finextra.com/community.
Pegasystems (NASDAQ: PEGA) develops strategic applications for marketing, sales, service, and operations. Pega’s applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega’s Global 3000 customers include many of the world’s most sophisticated and successful enterprises. Pega’s applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients’ strategic business needs. Pega’s clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use, and global scale. For more information, please visit us at www.pega.com.
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