Banks should be positioning themselves to be trusted partners for entrepreneurs, helping their businesses run smoothy, from account onboarding and beyond.
Too often however, what many business owners experience are complex, inefficient processes that require a litany of repetitive details and data points that can take days — or even weeks — to complete. In many cases, small and medium business owners have been forced to look to other institutions as a result of slow, manual process at their existing bank. The industry has seen how those institutions that invested in automation and better business banking experiences actually grew in terms of customers during the pandemic. But the growing number of banks that recognize the need to offer better experiences through enhanced user interfaces and automation must overcome the main hurdle of how best to implement it.
Today’s business owners expect the same quick and simple banking experiences they receive from their personal accounts from their business accounts. Banks that recognize this need often still fail to close the gaps. A major issue is that most of the process is still driven by paper forms. By automating some of these more manual and tedious steps, banks can speed up and streamline the process. Allowing the customer to directly fill out the necessary information online, all at once, rather than have them complete PDFs that need to be rekeyed by a bank employee later can save vast amounts of time.
Even once the account is live, business banking can still often be a clunky and complicated experience, especially on the back-end where each function lives on a different platform or service hosted by different vendors. Electing these options may take the user out of the bank’s system, with an environment that may look and function very differently than the initial account interface. Banks want systems that are attractive, transparent and user-friendly on the front-end, but still have all the functionality and capabilities users need.
The truth is that there is no single platform currently available that can check every box and solve every issue. However, banks should focus on the full end-to-end experience and look for solutions that can support their most current, important needs and offer the flexibility to adapt as the bank grows. Banks need to build architecture that reflects a more modern, app store that keeps the user in its cultivated experience without an obvious and often jarring transition between functions or screens, creating an overall better experience for the business banking user. Solutions and platforms that are flexible and scalable mean that banks can adjust these looks and functions as both the technologies and user needs shift, changing and controlling the experience to match it.
While some banks would prefer to develop their solutions in house, they may lack the dedicated talent and resources to do so, but “off-the-shelf” solutions may not have the necessary flexibility and scalability. For many community banks, this has increased interested in partnering with fintechs. Banks considering this option must ensure the fintech can meet all their functionality needs, as well as their risk and regulatory requirements — no small feat. A good place to start is by evaluating how a fintech’s level of compatibility with the bank’s existing core system.
Fortunately, there are a growing number of “core agnostic” fintechs that can work effectively with a variety of technology platforms and organizations, offering malleable products that can match the individual rules and procedures of each bank. Banks can then control the user experience and tailor it to their specific client demographic. From a cost-effectiveness standpoint, recent “low-code” or “no-code” solutions from an innovative fintechs give banks the ability to handle these changes in-house, without an extensive IT team. These solutions can bring greater efficiencies for banks that are now able to manage and shape their technology systems to solve complications that once required advanced technology experts.
Building and strengthening the relationships with business account holders is becoming a bigger priority for all banks. Banks that prioritize their needs and expectations by focusing on the end-to-end user experience and offering their business customers a better, faster and seamless experience will be positioned to meet their demands, possibly changing the road map of its technology future.