Banks are an integral part of business financing globally. While most financial institutions cater to individuals, some services are ideal for commercial customers. Because of this, the number of commercial banks insured by the Federal Deposit Insurance Corporation (FDIC) reached 4,236 by 2021.
To serve commercial clients better, banks must provide quality products and excellent services such as lower fees, faster processing times, higher returns, and more innovative digital services. Fortunately, in the corporate banking industry, technology has continued to evolve, making it possible for financial institutions to keep up with the needs of their commercial customers.
Constant innovation in the banking industry means that banks leveraging software services compete much better for customer loyalty. Therefore, banks are now partnering with third-party payment processors to adopt technologies that allow them to hold on to their commercial clients and drive new business. Here, we look at how banks use software solutions as a service and innovative payment methods to make transactions easier for their commercial customers.
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Commercial banks serve both small businesses and large companies with varying financial needs. Before adopting software solutions, every bank needs to understand the services its commercial clients expect. These include:
The global digital banking market was estimated to be $12.1 billion in 2020 and might hit the $30.1 billion mark by 2026 at a CAGR of 15.7%. Customers today are drawn more to financial institutions that provide mobile and digital services. Therefore, as a bank, you can serve your commercial clients better by establishing an app to enable mobile banking.
Digital services allow customers to access banking services 24/7 compared to traditional physical branches that operate only during regular business hours. You manage more clients, attract more commercial customers to open an account with you, and generate more revenue in the long run.
Take advantage of accounting software and payment solutions that allow you to address a client’s broader needs. Your customers need to manage payroll, accounting, invoicing, financial planning, taxes, procurements, and other business functions tied to cash flow. Once you adopt these software solutions, your clients can collect payments, process invoices, meet their tax obligations, and service business loans more seamlessly.
A B2B SaaS partner program allows you to expand your reach, increase revenue and build customer loyalty. For instance, if you have a business client that offers solutions as a service to different clients, you can partner with them to bring in more commercial clients to open accounts in your bank.
Due to the demand for faster payment systems, there is an increase in the number of players in the financial market infrastructure. Ease communication for your commercial client by adopting ISO20022—a global standard language used by financial institutions to communicate with each other.
Adopting this new vocabulary allows you to automate client payments, track expenses, enhance security, and process multiple payment methods across international borders.
Do your commercial clients need to process credit card payments, ACH, IVR, recurring, or hosted payments? Choose a suitable payment processor to take care of this. The top payment processors are reliable and scalable, providing comprehensive support and adoption for various innovative technologies. They also offer excellent security and compliance while helping you with faster payment systems.
Every commercial bank should provide ACH payment methods. Some core benefits of the ACH technologies include:
Nacha-preferred partners help banks process ACH payments for their clients securely and reliably.
A virtual terminal helps eliminate paper-based accounting and creates a digital trail of all the payments. This technology comes with customizable dashboards to help you track information on all payments, and it integrates quickly with all accounting tools. Virtual terminals help commercial clients manage their business collections and payments on a single comprehensive platform.
The Interactive Voice Response (IVR) payment service is brilliant for no-contact payment collection. Businesses can submit payments to the bank using a keypad or voice recognition for fast and instant transactions. IVR allows credit card, ACH, and eCheck transactions. It’s also PCI-compliant, reducing the PCI scope at your end by ensuring that no sensitive customer payment information stays on your system after the transaction is complete.
Check verification technologies help banks accept payments from their commercial clients while preventing fraudulent activities. Modern check verification systems confirm their validity and identify fake checks in real time to prevent fraudulent payments. Here are the five most important components of an advanced check verification system.
Security: Most payment methods, like ACH transfers, are highly secure. To prevent fraud, you can reject the payment as a bank if the customer information is invalid.
Cloud Technology: The evolving banking technology allows banks to use highly secure cloud technology. That allows the bank to integrate different technologies and protect customer data.
Technology development makes commercial banking seamless. Banks can leverage different software services to provide excellent customer service to their commercial clients.
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