Looking back on the past three quarters, it is clear that 2023 has been a year of upheaval for the banking sector. We have experienced several significant bank failures, and the global economy has been struggling all year. A series of crises—including the escalating conflict in Ukraine, supply-chain disruptions around the world, and the tightening of monetary policies—has forced corporate banking to evolve.

This environment has had considerable implications for corporate treasurers and risk managers, particularly in the realm of payments. That is because the macroeconomic challenges have created both unique pressures on banks' payments operations teams and opportunities for transformation.

The Payments Landscape in Corporate Banking

Payments have traditionally been seen as a steady, reliable source of revenue for corporate banks. However, the economic upheavals of 2023 have complicated that understanding. On the one hand, the higher interest rates which have persisted all year have the potential to boost banks' net interest margins. On the other hand, the potential for a broad economic slowdown amid persistent inflation might challenge corporate clients' ability to meet their financial obligations, which would impact banking revenues from payments.