Digitalization: A Key To Attracting Business Banking Customers

By CIOReview | Wednesday, July 6, 2022

The banking industry greatly benefits from adding digital tools to cater to customer needs.

FREMONT, CA: The global banking sector is expected to gain momentum with the inclusion of digitalized solutions to provide effective and quicker services to their customers. Digitalization has brought a shift in banking operations to cater to customer requirements and demands. Digital inclusion has also influenced SMBs to convert from large to community banks.

A holistic approach has become increasingly important to businesses and the financial institutions serving them as business preferences shift to digital. To compete and win in this market, financial institutions must provide seamless digital customer experiences after making it easy to become a customer.

How can banks and credit unions provide a digital experience that will appeal to business customers?

Payments, transferring money from one account to another, and other banking functions are traditionally handled by banks and credit unions using utilities. It applies to all types of businesses and is very generic. There was an ease of use on the retail side, but SMBs didn't have the capabilities they needed to manage their finances. Business-to-business payments were possible commercially, but the process was too complicated.

For credit unions and banks to provide all the financial services their business customers need, they must leverage their customer data. Rather than just putting banking products on the market and expecting customers to figure out what to do with them and how to use them to support their business needs, banks and credit unions can differentiate through tailored experiences in the markets they want to compete.

Integrating the human element

As part of their go-to-market strategies, several banks use relationship-based marketing techniques to improve customer relationships with their relationship managers or branch managers to reach their target audiences. Banks and credit unions must show that they understand the needs of their business customers when designing products and services. It is also impossible to follow the same one-size-fits-all approach here. It needs customization. Financial institutions must digitize their internal operations to achieve this.

Teaching customers how to bank

Financial services companies have taught SMBs how to bank using a system such as automated clearing houses (ACHs), standard entry classes (SECs), codes and addenda records. Continuing to teach business customers how to run their financial aspects and leveraging data to recommend financial solutions aligned with their needs is another way banks and credit unions can differentiate themselves among their business customers. Utilize data to recommend financial solutions that align with the needs of new users on how to run the financial aspects of their business.