Saturday , 20 April 2024

5 Key Capabilities Your Financial Institution’s Digital Payment Solution Must Possess

The rise of online shopping has enabled many new and established commercial enterprises to grow their digital sales channels, such as their websites and mobile applications. To keep up with these developments, financial institutions are expected to offer payment solutions that are capable of matching the trajectory of their corporate clients.This way, they can grow businesses digitally using technology.

To stand out from other payment service providers, however, a bank’s corporate banking division must offer a digital payments solution that’s designed to address the current as well as the future needs of the commercial establishments they cater to. After all, many businesses are keenly aware of the changes in the financial landscape. The digital revolution is at full speed in the banking industry, and tech-savvy businesses know that their financial services provider should be welcoming of new technologies if they want to stay ahead of the curve.

What capabilities should your corporate bank’s payment solution possess so that it can gain the consideration and trust of seasoned enterprises that are strengthening their digital sales channels, as well as emerging businesses run by digital native entrepreneurs? Here are some of these capabilities you should look for when considering a new solution:

Improved Payment Efficiency

Corporate banks have to go through multiple mediators to see transactions to completion, and this process can involve a series of cross-border payments, account-to-account transfers, digital banking solutions, and transaction fees. The presence of multiple agents and entities can affect the fees and turnaround time of each transaction, making it difficult for corporate banks and business owners alike to predict the cost and time that each transaction lifecycle will require.

One way to work around this is to have bilateral agreements with all banks and financial agencies that are taking part in the transactions that your corporate banking organization is capable of accommodating. These agreements can include the fees and settlements that each participant has agreed to, making it easier for your bank to provide corporate clients with predictable costs and turnaround times. Just like when you are considering investing in cryptocurrency, you’ll want to make payments as efficient as possible.

Reduced Payment Cost

On top of reducing processing time, simplifying transaction routes also cuts the cost of processing each transaction and enables your bank to provide more affordable fees to its corporate clients. As much as possible, your bank should have a single hub wherein all the transactions are processed and settled. Carrying out these complex steps in a single location or point will enable your organization to quickly address all the challenges that individual transactions may face prior to completion. At the same time, your bank will find it much easier to choose the most efficient route for each transaction, since all your options can be found in a single network. This way, you can save money and invest more into app development costs.

Richer Payment Experiences

It’s not enough to offer improved efficiency and lower costs to your clients; it’s also a must to set your corporate bank apart from the competition by offering richer payment experiences that none of your rivals can match. Aside from seeing each transaction to completion, perhaps your bank can offer its corporate clients the option to use different payment networks and specify the routes that they want their transactions to take. It’s also smart to make use of application programming interfaces or APIs so your payment channel can seamlessly incorporate and integrate functionalities from other applications and provide a host of experiences for different payment schemes. You may also want to consider leveraging APIs as part of a digital strategy. The addition of APIs can even enable your bank to build an ecosystem of services that your corporate clients can strongly associate with your brand.

Better Payment Visibility And Insight

Corporate clients value transparency from their financial services providers. In addition to ensuring the completion of each transaction, these clients want a clear understanding of the routes that their transactions are taking as well as the common issues that prevent payments from pushing through. As such, the payment solution you offer your corporate clients must be designed for enhanced visibility. This way, all relevant parties can easily look up the status of the different types of payments, get digital insights on where these payments are coming from and the route they’re taking, and use these details to improve any pain points in the process.

An Openness To Adopting Emerging Technology

More than just focusing on their financial services provider’s current capabilities, many corporate clients are also closely evaluating their bank’s attitude toward innovation, such as internet and digital banking. The ongoing digital revolution has highlighted the many advantages that come with being an early adopter of fintech innovations. Banks that embraced digital technologies early on were able to offer their corporate clients modern banking solutions, leaving less tech-savvy financial organizations far behind. If these corporate clients want to keep up with the latest payment options, they need to partner with a financial organization that watches out for new avenues for growth. Now is a good time to evaluate how your bank maximizes the use of APIs, virtual account management, and other innovations that may be widely adopted by other financial institutions in the future.

Is your bank providing its corporate clients with payment solutions that support their current and future growth? Check this list and make sure that the option you present is capable of meeting the changing needs of your corporate clients.

Leave a Reply

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll To Top