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In a world where life continues to become more and more fast-paced, businesses now face mounting pressure from customers and stakeholders who expect goods and services to be delivered in a timely and efficient manner. Gone are the days when a company can smugly rest on its laurels—people who pay for something expect their money’s worth, and they often won’t wait around to get it, especially given the wealth of alternative options out there. This, in turn, means that corporates are starting to expect more from their banks, too. Globalization alone necessitates innovation: any business that hopes to survive and stay ahead of its competition needs to have speed and agility on its side as it navigates multiple currencies and markets.
While retail banks and other consumer-facing financial institutions have begun to reap the rewards of embracing digital transformation, though, corporate banks seem to still be stuck in the dark ages. Their insistence on making use of clunky analog systems and inefficient manual processes is definitely costing them and their clients, though. Don’t let your bank get left behind—here’s what’s bottlenecking your corporate clients, and how modern commercial banking applications can eliminate them:
Spending Too Much Time on Manual Processes
There isn’t an industry in the world exempt from having to deal with manual tasks, but financial organizations in particular do tend to be bogged down by them. They depend heavily on information gleaned from a large number of external data sources, but are unable to use that data without first integrating it into their systems and processes; integrating that information usually requires hard coding it manually, turning what should otherwise be a simple task into a repetitive, time-consuming, and error-prone chore. Banks are also notorious for holding on to legacy systems that cannot effectively communicate with modern applications without a human mediator. Finally, some financial companies simply may not have the budget for the infrastructure necessary to automate these tasks.
The typical mid-to-large corporate usually has to manage over 300 bank accounts on the average. To do so manually is neither efficient nor sustainable. Employing a modern solution means giving your employees the opportunity to spend their time on pursuits that drive value for the institution instead of unnecessarily tedious processes.
Struggling with Obsolete Channels
It’s become increasingly clear that the world has grown more and more reliant on digital services. As individuals, we use them all the time: we order takeout, stay on top of the news, connect with loved ones, even manage our personal finances from handheld screens such as smartphones or tablets. Mobile devices allow us to transact at our leisure and instantly receive feedback without ever having to leave the safety of our homes, and no one has understood this better than the retail banks that invested heavily on digital early on.
Meanwhile, the corporate banking sector stubbornly continues to rely on antiquated legacy systems despite growing demand and declining customer satisfaction. There is a palpable clamor for best-in-class digital products and services, but only 8% of banks were providing them as of the 2019 Global Treasurer’s Banking Transaction Survey. Obviously, outdated systems suffer from some very serious issues that could negatively affect businesses: they lack self-service functions that could significantly improve efficiency; anti-money laundering and counter-terrorist financing checks take longer, thus dragging on the onboarding process for new clientele; and integrating a client’s treasury system with their bank platform can be quite the challenge. All that said, making the switch from analog to digital can be critical to your bank’s survival in the modern era. Clients want a richer, more robust digital experience, and are willing to take their business elsewhere if it means getting better service.
Lack of Access to Real-Time Data
Finally, few things can hold a corporate client’s business up more than the inability to make the right financial decisions when necessary. They can only do this, though, if they have full access to real-time information on their cash and liquidity positions.
Corporate banking applications such as virtual account management can provide your corporate clients with a better view of their capital. With this improved visibility, they’ll also have more control over where they want their cash and liquid assets to go. Your bank will be able to help them centralize their money that is trapped within complex bank account structures and divert it towards a master account, which they can then dispense from as they see fit.
Change is coming to corporate banking, and it’s in your financial institution’s best interests to get ahead of the wave instead of getting swept up in it. Eliminating these bottlenecks with modern commercial banking applications and digital solutions from a provider you trust can greatly increase operational efficiency and earn you the trust and continued loyalty of your corporate clients.
You may also like: Essential Features for a Successful Mobile Banking App
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