A Corporate Banking

Account Manager in
the Digital World
Raoul is a quintessential Account
Relationship Manager in the world of
corporate banking, managing several
large corporate and mid-market segment
relationships across diverse industry
segments. He needs to hunt for new
relationships and grow existing ones as
well, by increasing the bank’s share of
wallet while making sure that today’s
revenue does not become tomorrow’s
capital charge in the form of a non
performing asset. A typical day is spent
more with customers and less in the
premises of the bank. Half-jokingly, his
management asks/wonders why an RM
would need a desk at the office, when he/
she needs to be mobile and out in the field
selling all the time!
A typical day sees Raoul meeting a
prospect for pitching a corporate loan
which magically opens the door for
a whole world of other lucrative fee-
based business for the bank. A quick
search on the internet reveals the latest
developments in the company. Raoul
knows that an acquisition is on the cards
and armed with this information, meets
up with the CFO to offer financing on
attractive terms. A deal seems to be on the
cards. On the way back, and while in the
cab, Raoul gets busy with his tablet which
is connected to the bank’s intranet, filling
out the details of the potential opportunity
in the customer management platform –
deal size, key decision makers, risk issues,
competition, expected pricing and other
salient details. The report will instantly
reach many members of the bank’s senior
management in corporate banking.
Raoul then emails his credit analyst to
prepare a credit application proposing
a long-term loan for the acquisition. The
application typically has multiple sections
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including a term sheet, sections on
industry/ management/ financial analysis/
spreadsheets etc.
While the analyst puts together the
proposal, Raoul is on his way to meet the
next corporate client, who has a significant
international trade business. The company
seeks a back to back letter of credit facility
from the bank. Seemingly it’s an innocuous
transaction: all the bank needs to do is
to issue an LC on the strength of another
master LC received by the customer. But
such a transaction could potentially carry
an inherent timing risk arising from any
delay in substitution of documents or due
to non-conforming documents as per the
master LC. Raoul assures the customer
that he would revert on whether an offer
was feasible after seeking credit approval.
Raoul is on the move again, but meanwhile
initiates on his tablet through the
corporate loan origination system, a simple
credit application with a term sheet and
sends it to the credit analyst to work on
further, and also sends an opportunity note
to the trade finance specialist to examine
the request and the risks involved. Again
the customer management system comes
in handy for the salesperson on the move!
At the same time, Raoul gets an alert
that his previous request for acquisition
financing is now in his inbox awaiting
completion of the term sheet. He spends a
few minutes, while on the move to the next
meeting, completing the term sheet and
sends the credit application back to the
analyst for further processing.
The next meeting takes Raoul to a
customer who is very active in Treasury
transactions. The customer has un-hedged
exposure to floating rate Japanese Yen
which he would like to convert into a
fixed rate US Dollar liability. This was a
punt on the yen’s strength against the
dollar. Currency markets not being Raoul’s
core competence, and not being sure of
the prudence of this move, he keeps his
counsel. However, Raoul whips out his
tablet and checks for any unutilized lines
for the corporate customer online and
confirms the availability of the credit line to
the customer. It’s time for lunch, and on his
way to the nearby deli, Raoul fills in a cross-
sell opportunity form and sends it through
the customer management platform to
his Treasury colleague to take forward the
opportunity to sell a derivative product.
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 Raoul whips out his tablet and
checks for any unutilized lines for
the corporate customer online
and confirms the availability of
the credit line to the customer.

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Raoul has some time to kill after lunch,
with his next client meeting an hour way.
Quickly, he checks the corporate loan
origination system in his tablet. There is
a renewal proposal that is awaiting his
recommendation. The customer is a blue
chip corporate entity with impeccable
financials and a credit rating of the highest
order. Quickly the application is disposed
of, with a strong recommendation to
renew the facilities for another year. There
is one more proposal for additional lines
to a customer in the mid-market segment
which would require more scrutiny. Raoul
is quickly able to spot some key points that
need elaboration and sends the application
back to the inbox of the credit analyst with
his observations.
Raoul is now on his way to his last meeting,
and gets an alert from the bank’s trade
finance system - a large fee earning bank
guarantee transaction is held up and
awaits his approval in view of a small
breach in the limits. After checking the
lines available and noting unutilized lines
in the funded facilities, Raoul gets an e mail
approval for the transaction from the credit
approvers for issuing the bank guarantee
by earmarking the unutilized funded lines,
and then approves the transaction in the
Trade Finance system from his tablet.
evening. On the way back to the office, he
completes the visit report in the customer
management platform. The loan was
headed toward a substandard classification
which would entail a whole host of
regulatory compliance actions, including
reporting to the central bank on the status,
de -recognition of accrued but un-serviced
interest and making a provision for the
outstanding principal, all with the potential
to adversely impact the bank’s quarterly
results.

The next port of call is a problem loan

customer in the steel industry. The latest
Bloomberg commodities report that
Raoul read on the move painted a dismal
picture of the sector. With prices crashing,
the ability of the customer to service
debt would come down significantly.
Raoul meets up with the client and tries
to gauge the extent of the problem, the
exposure of other banks, and discusses
possibilities of debt restructuring. It would
be a long haul, involving all the lending
institutions coming together and entering
into protracted negotiations. After the
meeting, Raoul accesses the system and
puts together a problem loan report with
the help of his tablet, documenting the
early warning signs of delinquency in The last meeting is the most difficult one; He then reviews the next day’s calendar,
the account and calling for an immediate it’s with a mid-sized company in default which is packed with customer visits.
downgrade of the Credit Risk rating of and Raoul is expected to assess if the There is a supply chain financing deal
the customer. The report would reach account could be turned around or would involving corporate buyers uploading
the CEO’s inbox instantly, given the size need to be transferred to the Special accepted invoices directly into the bank’s
of the bank’s exposure and its potential Assets Department which would then system, followed by suppliers reviewing
to significantly affect the bank’s bottom decide to go for a work out, a one-time and choosing the invoices requiring
line in the event of the loan turning non settlement or in the worst case, litigation. discounting through the bank’s portal.
performing/past due. Raoul’s meeting extends late into the And another meeting scheduled with a

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large corporate entity for a multi-billion
dollar syndicated loan deal, with the bank
pitching for mandated lead arranger role,
the system being in place for facilitating
the book building process and exchange
of documents with potential investors,
electronically. Deal details are available
through the opportunity information
captured earlier through the customer
management platform, which Raoul can
review remotely before the meeting.

It had indeed been a long but productive

day spent with customers, but at no point
in time, did Raoul feel out of touch with his
colleagues and the bank’s operations. With
corporate banking entering the digital
world, Account Relationship Managers
like Raoul who are always on the move,
can now access on the road, the bank’s
systems to initiate and recommend credit
proposals, work collaboratively with credit
analysts, quickly prepare visit reports
and early warning submissions, approve
transactions which need exception
approvals, inquire on the bank’s systems
for customer exposure and unutilized
lines, cross-sell opportunities instantly
and much more. While Corporate Banks
have always been encouraging Account/
Relationship Managers to be out in the
field selling rather than warming their seats
in the office, it is digitization which will
enable the RMs and banks to truly achieve
this objective thereby vastly improving
sales productivity. Notably, investments
in core/back end processing have been
humongous, and banks would hopefully
not skimp on IT budgets, when it comes to
easing the life of their corporate banking
rain makers!

Author: Balachandran R
Senior Product Line Manager
Infosys Finacle

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About Infosys Finacle
Finacle is the industry-leading universal banking solution from EdgeVerve Systems, a wholly owned subsidiary of
Infosys. The solution helps financial institutions develop deeper connections with stakeholders, power continuous
innovation and accelerate growth in the digital world. Today, Finacle is the choice of banks across 84 countries and
serves over 547 million customers – nearly 16.5 percent of the world’s adult banked population.

Finacle solutions address the core banking, e-banking, mobile banking, CRM, payments, treasury, origination,
liquidity management, Islamic banking, wealth management, and analytics needs of financial institutions worldwide.
Assessment of the top 1000 world banks reveals that banks powered by Finacle enjoy 50 percent higher returns on
assets, 30 percent higher returns on capital, and 8.1 percent points lesser costs to income than others.

For more information, contact finacle@edgeverve.com www.finacle.com

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