7 2. IntroDuCtIon For the last two years, the Open Banking Working improving the usability of services for corporates Group (OBWG)3 has focused on the development through standardisation, consolidation and integrat- and potential of Open Banking innovation and busi- ion of connectivity options and channels. ness models. So far, extensive attention has been devoted to (transactional) retail banking services, with pSD2 as a key driver for opening up data and functionality beyond the initial compliance scope of However, technological advances are increasingly finding their way into the corporate banking market, as evidenced by the emergence and use of open payment initiation and account information services. Application programming Interfaces (ApIs), mobile In contrast to corporate banking, the retail banking bined with cloud technologies) enable banks and cor- market is a fast-moving environment where new porates alike to make data and functionality available seamless, digital (transactional) experiences across in a secure and cost-effective manner for integration channels, combined with ever-changing customer within other applications, effectively creating new devices and cloud solutions. Open ApIs (often com- behaviour and expectations, require banks to alter and re-define their business models to effectively differentiate their product and service offerings. This potential differentiation can be found in the uptake of digital payments, which enables much more data value, services and experiences. The increasing openness of various data sources (both financial and non-financial) held by banks and corporates alike could further drive innovation in (e.g. location, behavioural, search, preferences) to be transactional corporate banking services (beyond captured across sales channels with each payment. payments) and is therefore a relevant theme to track The amount as well as the value of data collected and understand. Hence, this information paper of the on individual consumers is increasing – thanks to OBWG focuses on data exploration opportunities in advancements in processing capability, data ana- corporate banking by describing key concepts and lytics and data mining to identify customer patterns. application areas for data-driven business. We see banks, particularly the so called ‘digital chal- lenger or neo-banks’, experimenting with such data- driven services to provide personalised financial ser- vices to their customers. To structure the description of this emerging domain, the OBWG defined the layered ‘triple A’ model with a conceptual view of the Business Value Stack, focus- The corporate banking market is an intricate environ- ment characterised by regulations (e.g. Anti-Money ing on data availability, accessibility and analytics in the field of corporate banking. laundering (AMl), Foreign Account Tax Compliance This information paper explores the Triple A model Act (FATCA), International Financial Reporting Stand- as follows: ards (IFRS)), siloed banking relationships and the need for efficiency and cost control. Consequently, digital innovation in (transactional) corporate banking services has been limited for the last few years to increasing efficiency of services (improving straight through processing (STp), digitisation of largely Chapter 3: Corporate transaction banking from a data perspective Chapter 4: A brief exploration of data analytics Chapter 5: Data analytics application areas: use cases in banking labour intensive, manual processes (e.g. ‘Know Your Chapter 6: practical considerations in exploring Customer’ (KYC), client onboarding, contracting, data opportunities reconciliation, accounts receivable, invoicing) and Chapter 7: Conclusion 3 For further information on the OBWG refer to: https://www.abe-eba.eu/thought-leadership/open-banking-working-group/ EURO BANKING ASSOCIATION | DATA ExplORATION OppORTUNITIES IN CORpORATE BANKING