The impact of digital technology on correspondent banking

A collection of articles by subject matter experts from BNY Mellon explores how rapid digitalisation has affected correspondent banking and how it will shape the future.

By Richard Schwartz

One of the challenges at Sibos is keeping abreast of the press releases and white papers issued at the event. “Digital Technologies and the Future of Correspondent Banking – Where are we headed?” released at Sibos by BNY Mellon, explores how rapid digitalisation has affected correspondent banking and how it will shape the future. It includes contributions from BNY Mellon subject matter experts in asset servicing, treasury services, and technology.

“SWIFT’s theme for Sibos, ‘Enabling the Digital Economy’ is both highly relevant and timely,” said Paul Camp, CEO, BNY Mellon Treasury Services.  “Around the world, our clients are all embarking on their own digital journeys, across industry segments and across geographies.”

Two key highlights emerged from a survey conducted by the bank and covered in the report: internal resource constraints exist that slow or prevent adoption; and there is a lack of understanding about the potential use cases for banking in the Internet of Things, analytics and business intelligence, blockchain and distributed ledger technology, artificial intelligence, machine learning, and natural language processing. 

BNY Mellon’s research also shows that more than half of respondents believe real-time payments, SWIFT gpi, and cross border real-time payments can be fully implemented in two years or less. However, two-thirds of respondents cite a need for internal infrastructure upgrades to help ensure the successful implementation of these enhancements and services. As institutions consider outsourcing technology development, more than 80% believe that third-party reputation and customer service are the most important factors in helping to determine the right partner.