Corporate Banking going Digital
As technology continues to advance, society and the businesses within them must adapt to stay effective. In the world of finance, this has previously been shown in consumer banking. However, this is now extending from beyond consumer-focused banking into the corporate sector.
While physical interaction has previously played a key role in the success of corporate banks, these institutions must now adapt to the changing world. Those that don’t risk losing out to the competition. Customers now expect high-quality service, and traditional banking technology and methods are simply not able to meet their demands.
3 reasons for the Digital Transformation of Corporate Banking
- Outdated technology is hindering progress
There’s no way around the fact that new technology is expensive, however, a business that does not update its technology will fall behind its competitors. Moreover, the business will fall further behind as technology continues to advance. Not only that, but the financial cost incurred to upgrade their technology to the required standard are only going to get higher the longer it is delayed.
- Traditional methods are time-consuming
Some businesses may believe that their current technology is fine. This is not the case. As it stands, it currently takes between 90-120 days to onboard corporate banking customers.[i]
Such a vast amount of wasted time is not accepted by customers. If a retail bank took this long to onboard customers, they would very likely find themselves going out of business. Customers already have high standards of consumer banks and are beginning to expect the same from corporate banks as well.
- Customer expectations have increased
The digitalisation of banking has led to customers expecting the same level of high-quality service from a corporate banking digital service as they expect in-person. Businesses that persist with outdated technology are not able to meet these demands. These firms leave themselves increasingly vulnerable to losing customers. As it stands, digital banking for corporate customers leaves a lot to be desired. 85% of corporates have poor know your customer (KYC) experience, and 12% are already changing banks as a result.[ii]
3 benefits of the Digital Transformation of Corporate Banking
- Better client relationships
With the combination of a drawn-out onboarding process and bad technology, it can be easy for clients to assume that their bank does not care about them. However, improving technology can solve both issues – leading to better customer satisfaction.
Improved client relationships can vastly increase the chances of retaining customers, which is especially key in corporate digital banking as the customer base is very small.
- It can save the business a lot of money
The savings that can be made because of the digitalization of banking go beyond technology. As we mentioned above, retaining clients is vital to corporate banks. This is especially relevant to the corporate banking sector, as acquiring new clients is difficult.
Previously, customers may have stuck with their chosen corporate bank due to the various problems associated with switching banks. Now, however, digitalisation has made that process easier than ever. With such a limited pool to draw from, corporate banks will certainly be impacted by the loss of any customers.
- Keep pace with the changing world
Change is inevitable, and banks are certainly not immune from its effects. Banking is going digital, and it will stay this way. While this offers rewards to those firms that adapt, those that don’t adapt will be left behind.
If corporate banks want to stay competitive, they will have no choice but to go digital.
What can Apex Group do for you?
At Apex Group, we understand the need for digitalisation in banking. That’s why our Digital Banking Services allow us to offer an exceptional single-source solution to take care of all your corporate banking needs.
Our pioneering digital banking platform is simple, fast, and flexible. We can open your bank account in just five days and provide you with full 24/7 access to your account on any device. You’ll also be able to consolidate your accounts into one, easily accessible dashboard, among a whole host of other brilliant features.