Due to the complicated, segregated legacy technology that makes up the operating system of the majority of banks, business banking clients frequently have a more difficult time obtaining a bank account than the average retail client. A fragmented, prone to error manual process not only produces a bad customer experience but also increases costs, complexity, and levels of dissatisfaction for all parties involved. Now, with the rise of challenger banks, automated digital experiences, and tech giants such as Amazon, banks are facing more pressure than ever to step up their game and enter into the digital era.
Many banks are still reliant on decades-old legacy systems. For these banks and their clients, the benefits of digitalization are clear, and the time is now. The investment in new technologies in commercial banks can lead to a drastic improvement in the customer experience, and also paves the way for cost savings, further automation, and faster time to revenue.
Five key advantages of digitization
1. Multi-channel interactions with customers
Lengthy email chains that explain requirements and status request updates put a strain on customer relations and result in a high risk of clients abandoning the onboarding process before it can even begin. A digital channels approach eliminates the need for email correspondence and enables banks to communicate with clients in a way that works best for them. Customers can start an application online and continue it on another channel if they prefer. This multi-channel approach allows banks to extend the same strategy across business lines and geographies to create a consistent, reliable process that delivers the greatest customer satisfaction.
2. Preparing for new restrictions in the future
Complex Excel-based forms and checklists are frequently used to handle business rules. Due to human fallibility, this increases compliance risks and results in high error rates of up to 65% as well as a negative user experience. Clients won’t be prompted for the same information repeatedly if information like KYC requirements is collected at the beginning and reused. This automation also gives the business banks the chance to concentrate more on their clients and less on rules and conflicting requirements.
3. Upsell and cross-sell possibilities
Digitalizing and automating processes within a bank have added benefits beyond the improvement of the technology itself. The bank may introduce more innovative products by automating laborious processes and reallocating staff to duties that provide value. The bank is then able to continue providing superior service to its clients and stay abreast of industry changes. With simplified straight-through processing operations, banks can save operational expenses while also pursuing additional cross-sell and up-sell opportunities.
4. Competitive advantage
Customers are now very knowledgeable about what a good customer experience looks like, thanks to the common use of mobile apps and client-facing solutions. Now, a successful digital strategy requires more than just an app. Banks that adopt newer technologies will be viewed in the market as innovative rather than laggard. Additionally, slow-adopting banks run the danger of losing their clientele to challenger banks.
5. Improved customer experience
When clients are repeatedly asked to submit paper forms, re-enter information, or attend face-to-face meetings to verify their identity, the overall experience is massively impacted. Banks are now moving toward the use of new technology to provide a frictionless experience. Customers are given the ability to update their own data and documentation at any time using digital client channels. Integration with eSignature capabilities allows banks to capture authorized signer information and manage documents to reduce costs and accelerate transaction and onboarding times.
The advantages of digitalization in business banking are seemingly endless. Technology solutions that are future-proofed for new technology updates or regulatory requirements are the key to having peace of mind that your organization will stay ahead of the digital transformation curve.
Transform Digital Banking Experience with Paycorp.io
Paycorp is a platform that offers digitization of all types of business banking solutions. We have multiple services to fit the requirements of various businesses. Whether you are an SME, a larger company, or a digital lender, we have cloud-based, end-to-end business banking solutions for everyone. Paycorp specializes in recurring payment collection solutions. Customize your instructions, collect and acquire payments and revenues; and handle all your financial hazards hassle-freely with Paycorp.io payment solutions.