Corporate banking has been and still is to large extent the major banking preference.  Even though it seems like Small and Micro enterprises (SME) are taking over as the most important customers, the cash and profits are in corporate banking.

Having identified the importance of Corporate Banking, majority of banks create specific departments to ensure that their needs are met. Given the magnitude of their transactions and their importance these companies need a designated Relationship Manager.

The relationship manager provides advisory services on for example, investments and Capital decisions. The relationship manager also tries to identify change in the corporate customers’ need the relationship manager comes up with innovative solutions to meet this corporate banking need.

Managing this Relationship is slightly different from managing an SME as the failure or success of a corporate has a great impact on the Bank. So whether these Corporate Companies have credit facilities or not, the Relationship Manager should always be in touch with the following areas of the company

Corporate banking- Governance of the Company

This includes the members of the Board of Directors, the Board of Management and the management structures in place. The shareholding structure of the company and the bank also investigate the integrity of the team and what impact the corporate would have on the reputation of the company. The quality of governance is very critical as it can help determine the future of the company.

Corporate banking -Recovery Management

This is key to the stability of the business and it is important to establish in general if the corporate has a policy on the recovery from any unforeseen factors that would greatly affect the business. In other words the disaster recovery plan or the business continuity plan is very important and must be disclosed to the bank.

Corporate banking-Technology

This affects database management, establishing whether a company is up to date in technology, which is changing rapidly. Updated technology greatly ensures good database management, resulting and leading to accurate reporting, increasing transparency and accountability. Technology may also be used to reflect the financial health of a corporate.

Corporate Banking-Risk Management

Establish whether the corporate has identified the risks that could greatly affect their business. Confirm the measures that have been put in place to manage the risk. These measures must be well documented. The corporate should have unit monitoring for the ever increasing risks.

Corporate Banking -Management of Manpower

Establish whether the corporate optimizes manpower resources in terms of numbers, knowledge and even skill. This in turn maximizes productivity, improves quality of operations.

 

Given the current economic crises that has greatly affected many corporate companies, it would be prudent for the banking industry to keep in touch with their corporate customers operation  by providing relevant corporate banking solutions.