The Future of Global Payments & How Your Business Can Stay Ahead
The past two years have brought about major changes to our everyday lives. Thousands of jobs were lost, many businesses were forced to close their doors and others had to get creative to continue providing services despite the new restrictions put in place. The effects of the pandemic left no one untouched, including the immense world of banking and e-commerce.
Fast forward two years and the effects of these world events can still be felt. However, they are not necessarily negative for everyone. In fact, eCommerce and online banking saw an all-time high. With everyone stuck indoors, there wasn't much to do other than shop online. The switch from in-person experiences to online was dramatic, but it seems that people’s newfound online habits are here to stay.
So what does all this mean for the future of global banking? And how can businesses and banks stay ahead of these changes?
Here are a few predictions for the future of global banking:
The Use of Artificial Intelligence
Artificial intelligence has grown in its abilities and popularity among businesses and individuals alike. Over the past few years, when human interaction was limited and everything went virtual, AI technology took on the roles of many employees. It should come as little surprise then why the desire for AI technology to be more human-like is being pushed by consumers wanting to recreate an in-person banking experience online.
The use of a well-designed AI system can ease the worries of people who may be skeptical of online banking and bring about a more caring human touch. With the correct AI technology, financial institutions could use a mix of personal information that customers share and machine learning to create a hyper-personalized experience. This could enable useful features such as receiving alerts about potential shortfalls in their accounts based on historical transaction activity.
Digitization of B2B Transactions
The consumer-facing aspects of banking were among the first to digitize, as financial institutions raced to deliver the easiest, fastest customer experience possible. The B2B side has historically lagged behind.
But our B2B partners are also consumers, and they’re bringing those same expectations and experiences from their personal lives into their business lives. Meanwhile, the sudden transition to remote work made it much more impractical to send paper checks and invoices; who would even be at the office to receive them?
It’s no wonder, then, that global B2B non-cash transactions are projected to increase to 200 billion per year by 2025, digitizing accounts payable, accounts receivable, expense reimbursement, and employee-initiated spending has multiple benefits:
- Increased transparency: It can actually be quite difficult to follow a paper trail! Digital transactions are easy to track, so you know exactly what money is going where–in real time. This visibility allows you to better optimize cash flow.
- Reduced risk of fraud: Processes that rely on paper checks, invoices, and spreadsheets are generally more vulnerable to fraud, and that fraud can be more difficult to detect. Properly secured digital transactions can provide much greater protection
- Decreased costs: Manual processes come with a higher cost; just think of all the money spent on postage, envelopes, and paper checks–not to mention the time that employees spend on these manual transactions.
Less Infrastructure, More Online Presence
It's clear that the shift from in-person experiences to online is here to stay, especially if it saves time, money, and peace of mind. After all, who wants to spend hours in line waiting to deposit a check when it can easily be done within the comfort of their home? This shift also benefits banks as there are far more expenses in managing a brick-and-mortar location than there are in running an online platform. Without the need to pay for infrastructure and unnecessary amounts of employees, banks can utilize these funds to make a better, stronger online presence.
What needs to change in order to optimize user experience so that banks can stay ahead of this trend toward online services?
The services that are currently available online are outdated and need to be revamped to ensure customer satisfaction. The same functions that were available pre-pandemic worked at the time, but with a majority of the population opting for an online banking experience, it's time for banks to make some changes to their online services.
For example, online banking is not a 24/7 service. Most functions, such as transferring money or depositing a check, need to occur within business hours for the changes to reflect in an account in a timely manner. Offering 24/7 services will decrease the time it takes to move money from one account to another or deposit a check, giving customers instant access to their funds.
Challenges of a Borderless Business: More Online Presence, Better Banking
What exactly makes a banking experience better? The best way to answer that question is to look at every other online platform and its app. From social media to music apps to online food delivery, everything that is now available at the tips of your fingertips is customizable to the consumer. A personal experience can enhance the overall experience and keep the consumer on the other end of the screen happy and coming back for more.
Apps like Instagram and Facebook cater to individuals' needs by suggesting content that is similar to what they previously interacted with. Music apps like Spotify generate curated lists of music that you are likely to enjoy based on previous listening behavior. Even Postmates, a food delivery app, has the ability to learn from your behavior and suggest food that you may enjoy based on the time of day.
Why shouldn't your online banking be catered to you as well? Every other app is already doing it and improving because of it.
Online banking apps need to catch up and begin using AI technology to better understand their individual customer. Imagine an online banking experience where not only will you be able to skip the obnoxious lines, but your account can learn from your spending behavior and suggest better spending habits. Or it could help you improve your credit score by putting together a list of ways to break down your paycheck so that your bills are paid on time.
All of these features would be leaps and bounds away from the current online banking experience that most banks provide now. Investing the time and resources to improve customer experience by taking a more personalized approach has the ability to help everyone involved. No more overdraft fees, better spending habits, and happy customers that will continue their loyalty for years to come.
The future of global banking will incorporate technological advancements that will personalize user experience and allow individuals to have instant access to their funds. With the ever-growing desire for everything to be readily available at our fingertips and at instantaneous speeds, the switch to online banking will not only satisfy this need but drastically improve the future of global banking. In fact, Fyorin has already begun incorporating AI into its multicurrency online banking platform. Their futuristic approach to modern baking is sure to keep your business ahead of the competition!
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