How Digital Banking is Revolutionising the Way Businesses Handle Finances
Business owners know that they need to stay ahead of the curve to be successful, to separate themselves from competition and to stand out. When it comes to finance, things are no different. Though, it’s common for businesses that are growing rapidly to start offering new services and solutions, though they often forget to review internal fundamentals such as banking platforms. It may be time to update your banking solution in order to take things to the next level.
Whilst we often see articles about how far digital banking has come, this isn’t exactly news anymore - what we are interested in are those next steps. Just because things are available online and on mobile, it doesn’t stop there. The fact is that the business banking landscape is still evolving, and it's important to understand the predictions for what the future holds.
The fintech sector and digital banking audiences have been discussing some points that pop up again and again, it’s easy to see where the technology is headed for the next 1-5 years. If we consider the advancements made in 2022, we’re fully confident that things are going to snowball and the digital banking industry is going to look very different in just a couple of years.
Looking for a Banking Platform that is on the Pulse?
Before diving into the upcoming trends of Fintech, don’t forget to consider updating your current banking solution to make sure your business is able to benefit from an innovative platform, otherwise you may just miss out some of these types of exciting features, traditional banks tended to be quite slow to adopt new technologies and services. Monneo on the other hand, specialises in Virtual IBANs and merchant accounts to accommodate multiple currencies. Making business banking simple to use by offering a single platform for multiple accounts and currencies.
Upcoming Trends in Fintech:
1. Increased Use of AI and Machine Learning:
Business banking will almost certainly use more artificial intelligence and machine learning to improve the overall customer service and streamline pretty much all processes. This could include chatbots for customer service inquiries, personalised recommendations based on data analysis, and more efficient risk management systems to prevent security breaches.
A lot of these features are already starting to pop-up on sites, but because banking and finance is such a sensitive and crucial topic, it makes sense that there has been caution in terms of implementing this tech to this field. However, the huge leaps in AI in recent years are undeniable and it’s only a matter of time until banks start adopting this at scale.
2. Greater Adoption of Digital Payment Methods:
The trend towards digital payments is already underway as we see most banking platforms working on custom apps, and this is expected to continue in the upcoming years. This could include the use of mobile payment systems, digital wallets, and blockchain-based payment systems. We also expect to see fully embedded sites/apps, imagine if a social network site offered messaging, news, shopping and banking all in one place.
In particular, there has been an increase in demand for “physical wallets”, unplugging from the net and storing data on physical memory banks, with enhanced security features. This is currently a popular method of storing crypto etc, but as we move forward it’s likely this will become widely adopted for other use cases.
3. More Focus on Cybersecurity:
As businesses become more dependent on digital systems, cybersecurity is set to become an even bigger priority, quite hard to imagine considering it is already so important! But it’s certain that banks are to invest more heavily in advanced security measures to protect against cyber threats and data breaches. This is probably the area that’s going to be the biggest in the next decade.
As tech has generally become incredibly reliable and safe, the weak point is often the human user (specifically, employees within companies). Due to this, we predict that one of the largest areas that will advance in terms of cybersecurity will actually be around internal education and awareness. Goog training is expensive and this is one area where industry giants won’t want to skimp. Traditionally companies have hired dedicated specialists for security work, but it’s becoming more popular for every person in a company to be highly trained in this field, resulting in quite a different working environment and raising the standard.
4. Greater Integration of Financial Services:
No list of predictions is complete without this one - you’re probably already aware that banking is expected to become more integrated, with banks offering a wider range of financial services beyond just traditional banking. This could include investments, insurance, and other financial products.
This includes things such as FX trading, loans and tailored products (such as business specific “physical payment cards”). A lot of these types of services tend to be available for large businesses with a lot of investment and financial backing - meaning small businesses have generally missed out on these, unless seeking out specific means to do so. We expect this area to snowball in the next few years, because quite frankly - there is money to be made for the banks and businesses will benefit from these areas massively too.
5. Continued Shift Towards Online and Mobile Banking:
The convenience and accessibility of online and mobile banking will likely drive more businesses to adopt these platforms, similar to how QR codes have become widely used. It’s already possible to digitally scan cheques and we anticipate that more and more services are going to be streamlined in this way and become available through apps and within wearable tech.
Physical bank branches are likely to be a thing of the past, though cash is surprisingly still popular. It is inevitable that it will decline more and more as we become reliant on wearable technology and fast payment methods. Taking things in a bit of a different direction, there are even bank branches opening up in the meta verse which can be visited in augmented reality - so who knows where that will end up!
The Future is Exciting:
As we've seen, the future of business banking is full of exciting possibilities. From the increased use of artificial intelligence and machine learning, to the greater adoption of digital payment methods, the landscape of business banking is evolving. In the coming years, we can expect to see a greater focus on cybersecurity, a wider range of financial services, and a continued shift towards online and mobile banking.
As a business owner, it's important to stay up to date on these trends and how they may impact your business. By understanding the future of business banking, you can make informed decisions about how to manage your finances and stay competitive in an increasingly digital world.
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