SIBOS 2023 insights for commercial banking and finance sales teams

SIBOS 2023, the premier global financial services conference held in Toronto, delivered valuable insights for commercial banking sales teams. The event showcased innovative trends and technologies shaping the future of banking.

The standout report from the conference was undoubtedly the 2023 McKinsey Global Payments Report. It offered crucial insights into the ever-changing payments industry and provided valuable guidance on how banks and other stakeholders can capitalise on new opportunities. Leveraging data from McKinsey’s extensive Global Payments Map, which covers more than 25 payment products across 47 countries, representing a substantial 90 percent of global GDP, the report thoroughly evaluates the present condition of the industry.

Key Takeaways:

Global Payments Growth: Global payments revenue has surged for two consecutive years, marking double-digit growth. This underscores the industry’s dynamism and potential for innovation.

Rise of India: India has ascended to the top five countries for payments revenue, driven by the displacement of cash. This shift underscores the importance of emerging markets in the payments landscape.

Shift in Revenue Sources: Interest-based revenue contributed significantly to overall growth, reflecting changing dynamics in the industry. This diversification in revenue streams is a notable trend.

Cash Decline: Cash usage witnessed a substantial global decline of nearly four percentage points in 2022. Electronic transactions have consistently outpaced overall payments revenue growth over the last five years.

Era of “De-coupling”: The industry has evolved through distinct eras, and the data suggests it may be on the cusp of a “de-coupling” era. This transition presents opportunities for differentiation and innovation among payments players.

Competitive Strategies: Banks and payments players are presented with two key strategic paths to solidify their position in the payments industry. They can explore new opportunities to scale business impact and focus on enhancing productivity and risk management.

In response to the evolving landscape, there has been a noticeable increase in senior management and board-level attention to payments and transaction banking sales effectiveness. With the prevailing higher interest rates and more stable revenues, these products have gained increased prominence within financial services management teams.

Driving revenue growth in these product areas, in the era of the attention economy, where people’s attention is limited and valuable, requires salespeople to think and act more like writers and reporters. This means they should focus on telling a compelling story or providing useful information to stand out from the competition, especially when many products or services seem similar.

Leading consultancies are now advocating for this personalised approach to corporate clients, a trend that I have been championing and implementing with my  TRANSFORM Sales Growth acceleration workshop since 2018. This shift acknowledges the importance of tailoring solutions to individual client needs.

However, that leads to a common industry challenge, how to advance the competencies of both current and experienced sales personnel while simultaneously devising programs to nurture graduates new to the sales arena. Practicality and real-world application have become a priority, which is why actionable strategies for reaching specific target markets is at the core of my TRANSFORM workshops.

In summary, SIBOS 2023 shed light on the evolving payments landscape, emphasising growth, diversification, and the need for personalised and practical approaches in the industry. As the payments sector enters a new era, banks and payment players must adapt to seize the opportunities it presents.