Businesses of all types and sizes want more digital banking options because of the unmatched simplicity and convenience. Banks can't afford to ignore the aggressive demand for digital banking solutions or the unprecedented benefits on the bottom line. The writing on the wall is clear: current technology trends have rendered legacy banking systems unfashionable and outdated, while digital banking provides compelling proof that you mean business.
Banks willing to move with the times can use this guide to get started. It explains how to offer digital banking for business accounts and builds a framework understanding of the core concepts, benefits, challenges, and strategies associated with commercial digital banking.
Banks and financial institutions should understand the core concepts of digital banking for business. Knowing the key drivers of digital banking ensures foundational success by allowing you to keep up with your business clients' changing behaviors and expectations.
For starters, these are the baseline features needed for the digital transformation of banks.
Investing in cloud technology and virtualized infrastructure improves your digital banking solutions' accessibility, security, and flexibility. When you move your core banking systems to the cloud, you can enjoy greater agility and scalability. You also benefit from an upswing in operational performance and cost savings, particularly if you partner with the right cloud core provider.
Businesses are looking for a smooth and streamlined banking experience, so banks should put customer experience at the center of design initiatives. Your digital banking services should be supported by a glitch-free, frictionless, and highly responsive fintech design. Keep it simple and user-friendly.
The transformation to digital commercial banking should involve data collection and analysis for insight-driven strategies. Banks already process mountains of data daily and investing in a robust customer information management system helps decode the target market's behaviors and preferences in real-time. That way, you can sharpen your strategy and concentrate resources on creating an exceptional differentiator.
APIs should be part and parcel of any bank's IT stack. APIs enable different platforms, applications, and systems to integrate seamlessly, making it easier to provide streamlined services. By adopting open banking APIs, banks can accelerate digital transformation, deliver value-added products and services, and benefit from innovative solutions that enhance specific banking services.
These are some of the digital commercial banking products and innovations that can help you redefine your proposition to business clients:
If you're looking to keep your existing core intact, it's still possible to implement new digital banking services. For instance, you can focus on the use of dedicated microservices outside core banking.
This allows the gradual elimination of monolithic architecture and reduces the need to customize the core. The coexistence model will enable banks to decompose obsolete banking models and move towards digital transformation at a customized pace.
It's essential to familiarize yourself with digital banking best practices. Generally, these include the following:
When done right, digital banking can be a game-changer for banks and financial institutions. The benefits can be summarized as follows.
Digital services also offer many advantages in banking for businesses, especially if accompanied by 24/7 accessibility and convenience. A new digital platform that allows customers to perform self-service jobs like opening accounts, downloading eStatements, paying bills, transferring funds, and updating business information drives customer engagement and true loyalty.
There's no denying that digital transformation for banks has many benefits. That said, banks also need to be aware of the challenges.
In addition, digital banking isn't always mutually beneficial for banks and customers. For instance, implementing services like remote account opening is easier for the customer but can be difficult for banks.
Fortunately, there are ways to neutralize some of the challenges. Banks are encouraged to research and strategize thoroughly, utilize a customer-centric model, and develop a robust cybersecurity plan. More importantly, banks should look for a secure and easy-to-deploy platform that can run parallel with existing cores.
Once you find a full-service partner that meets your needs, figuring out how to offer digital banking for business becomes infinitely easier. For instance, BrightFi provides several options for going digital.
Having these options means your digital transformation can be an incredibly flexible experience, no matter where you are on your journey.
As a leading fintech innovator, BrightFi can simplify your bank's digital transformation, so you can start offering digital banking for business in weeks, not months. Partnering with us boosts agility, scalability, and multi-functionality. You already have the advantage of providing personalized and engaging customer experiences. So why not complete the picture by offering high-tech digital banking solutions?
We can't wait to meet you!