More banks in the US and UK are embracing the digital transformation to develop more customer-oriented services.
International Finance Magazine reports that banks have made substantial technological advancements in retail banking.
They’re experimenting with technologies like wearable gadgets for conducting transfers, notifications, and alarms.
This approach of consistent innovation has resulted in around 80% of consumers accessing bank services through their mobile devices.
However, corporate banking is still lagging behind in the digital transformation, primarily due to its complex product offerings and the lack of pressure to digitise.
But with businesses becoming more reliant on technological innovations in other areas of their operations, banks are under pressure to keep up.
As such, they’re fostering transformations with customer-focused solutions that can help businesses thrive this year.
Here are some of them.
Artificial intelligence for loan processing
Artificial intelligence (AI) has been a game changer for operational efficiency in corporate banking as it improves loan processing.
Loan processing is long and labour-intensive, making it prone to errors when done by humans.
AI enhances the approval process by automating the review of criteria like interest rates or revenue.
It can also reduce errors that may arise in document processing or misfiling, as well as rekeying repetitive information throughout each step of the process.
Businesses can benefit from this by gaining a highly personalised and efficient experience.
By having their data readily available for processing in bank databases, they no longer have to expend resources in following up with the loan approval process.
It also reduces the chances of declined loans and refiling.
Advanced solutions for regulatory compliance
Banks are putting security and quality service at the forefront by investing in solutions that heighten adherence to Basel IV, an international regulatory framework allowing banks to better assess risks and innovate solutions.
The challenges in meeting Basel IV guidelines often lie in streamlining internal and external reporting, consistently monitoring requirements throughout the process, and needing an advanced platform that manages these tasks.
Fortunately, scalable, automated reporting solutions allow banks to improve their operations by streamlining Basel IV compliance.
These solutions automate data, calculations, and reporting, as well as following precise regulatory metrics to improve decision-making.
Businesses rely on banks to provide key financial services, like cash management, payment processing, and fraud protection.
These are critical to ensure that companies optimise costs and reduce possible losses.
With heightened reliability and up-to-date solutions that comply with Basel IV regulations, banks can guarantee their security and quality of service.
Collaboration with Fintech Companies
Today, digital payments heighten the convenience of transactions made in an increasingly digitised world.
Our feature ‘Do We Need To Start Preparing for Cashless Future?’ touches on how this has driven the monumental rise of digital payment methods and the changing infrastructures to accommodate them.
Consumer preference for these new modes of payment is due to fintech industry leaders’ insight into niche banking problems and their drive to solve them.
This innovative approach is precisely what’s driving UK banks to collaborate with fintech companies.
They are able to set up “both incubator and accelerator hubs for fintech entrepreneurs developing new technologies, which they as banks can then deploy to deliver more innovative, digital solutions to their own customers”.
The result of this includes enhanced services such as multi-currency and international payments, real-time payments, and innovations in the lending processes.
This is integral for businesses that want to expand their payment methods under a consolidated merchant account.
Without needing to collaborate with fintech companies and restructure their payment processes, they can integrate digital payments into their transactions through their bank’s services.
In addition to streamlining the management of their merchant accounts, businesses can keep up with consumer preferences.
Today, banks in the UK understand that the digital transformation is critical to retaining their customers.
As they embrace this direction, businesses are able to thrive from their innovations.
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