Banks will have to rethink their business practices created for a "normal" interest rate environment, according to a white paper from Coalition Greenwich, a CRISIL Ltd. company.

The white paper analyzes how COVID-19 has affected banks and their clients, provides short-term projections for key bank business lines like cash management and trade finance, and explores how institutional servicing and corporate/transaction banking will evolve over the longer term in a post-pandemic environment. CRISIL and S&P Global Market Intelligence are owned by S&P Global Inc.

Banks will have to reintroduce fee-based models to maintain profitability. There will be pushback from corporates, but over the long term, there is likely to be an equilibrium in the spirit of "co-opetition" to preserve the economics of the industry.

"Banks will have to acknowledge the fact that they cannot go it alone," according to the white paper. "The proliferation of fintech and techfin providers in payments, working capital and other areas is splintering the client ecosystem, and banks will have to partner with at least some providers to capture a meaningful portion of the modern ecosystem."