Companies want emerging cash management technology

Companies are developing a growing appetite for transparent and digital banking solutions that can better streamline their B2B processes.

For example, 57% of companies want to know how they could use emerging technologies to improve their cash management, as shown in the “Next-Gen Commercial Banking Tracker”, a collaboration between PYMNTS and FISPAN.

Get the report: Next Generation Commercial Banking Tracking

Additionally, businesses are increasingly frustrated with time-consuming manual payment methods as more consumers and business partners go online, placing Accounts Payable (AP) and Accounts Receivable processes (AR) at a competitive disadvantage.

PYMNTS research found that Chief Financial Officers (CFOs) said their top reason for digitizing AP and AR processes was to benefit their customers and suppliers. Similarly, CFOs improve their B2B processes to improve the lifetime value or overall loyalty of their customers.

Helping companies innovate in their B2B operations

Faced with significant challenges when integrating these tools, companies are looking for banking partners who can help them innovate their B2B operations to meet both their own growing digital preferences and those of their customers.

Lack of banking connectivity is one of the biggest factors that can hamper companies’ ability to build innovative B2B or cash management processes. Solving this problem represents a key opportunity for financial institutions (FIs) looking to build business loyalty.

FISPAN co-founder and CEO Clayton Weir told PYMNTS that while 2020 has forced many FIs to adapt to a changing market, FIs are now implementing informed plans to improve existing processes.

Read more: 2021 was the year of the Renaissance

Growing demand for digital solutions

As FIs seek to augment their products and services to meet changing business payment needs, they will likely find application programming interfaces (APIs) to be a critical technology.

Banks are increasingly attracted to APIs to connect to third-party platforms and improve operational efficiency. This includes the ability to connect to customers’ enterprise resource planning (ERP) systems more seamlessly, enabling them to deliver faster and more streamlined payment experiences to their corporate customers.

Since businesses that are used to conducting their AP and AR processes through manual channels may find it difficult to transition to digital B2B payments, banks that react quickly to reduce these frustrations can retain business customers. This is where APIs can offer a critical solution, as they allow corporate FIs to provide a seamless bridge between their own platforms and the business software that companies rely on.

The growing demand for cutting-edge digital solutions is making the business banking playing field more competitive than ever. FIs need to look at their current B2B banking solutions with a critical eye. APIs might be their best platform innovation strategy to build business loyalty.

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NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICE IN THE DIGITAL ENVIRONMENT

On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.

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