Banking with corporate customers - Bankgeschäft mit Firmenkunden

After the severe economic crisis, things are looking up for banks in Germany. This is because business with corporate customers is booming and offers gross revenue potential of over EUR 30 billion. However, banks in this sector must meet new challenges: good ratings and credible risk measurement are more important than ever. Open communication and competent customer advice are necessary to win back the trust of customers.

Banks need to win back their customers' trust

Banks must focus on providing better services in the corporate banking sector. Following the financial crisis, banks need to make their processes more efficient and transparent – this includes everything from customer contacts to transaction settlement. By doing so, banks can win back their customers' trust. This means careful HR policies are needed, especially when selecting corporate customer advisors.

Good ratings and portfolio management are crucial for maintaining a competitive edge

The economic crisis revealed considerable deficits at many banks: stark differences in refinancing costs, the varying development of the equity basis and inherent threats of some business models have forced banks to focus more on portfolio management.

Financing gap threatens SMEs

The positive impact of the recovery could however lead to a financing gap. "Most companies have successfully weathered the crisis and now need funds for new investments," says Bastian Frien, Editor-in-Chief of the magazine FINANCE. "However, rising credit needs among companies are colliding with bank equity restrictions. This means banks cannot cover all borrowing needs." If no additional equity is generated, a financing gap of up to EUR 260 billion could build up by 2014.