Making the Case for Modernizing Your Payment Solutions Today
The 2010s were remarkable years for digital payment solutions. The use of cashless payment technologies became more widespread, especially since they could be used in conjunction with mobile devices. Slowly, more consumers who were initially cash-dependent became familiar with digital payments. Today, cashless payment technologies are even more common, and providers are innovating at the speed of light to enable faster, safer, and smoother payment experiences.
This is the context in which you operate as a provider of financial solutions, especially to entrepreneurs. Many of your peers in the finance industry have begun leveraging their payment solutions to become more competitive, and it’s a move that you should consider making as well. Truly, investing in a more robust payment solution is one of the best things you can do to compound your business’s current value. Here’s an argument in four parts for why you should begin your payment modernization journey as soon as possible:
Cashless Has Become the New Default for Various Payment Processes and Services
One of the most compelling reasons to modernize your current lineup of payment options is because the rest of the world—comprised of your clients and their own customers—has already followed suit. Though many customers were once suspicious of non-cash options, a growing number of them have begun actively looking for cashless payment methods. Cashless and Internet-driven payment is also a cornerstone of many business-to-business (B2B) transactions, both local and international.
Having a leading position in an ecosystem that’s driven by digital currency will bolster your financial institution’s performance. Shifting to modern payment solutions, administered on a more modern platform, will allow you to attend quickly to your clients’ needs. It will also smoothen their own cashless B2B transactions, such as those they conduct with their suppliers, for example.
Lastly, you can uphold a quick and cashless repayment system for your lending services, including but not limited to business loans and lines of credit. A modernized payment solution will make the repayment of borrowed money much easier on your clients, and the management of these services much easier on you. Those prospects should be good reasons to modernize, indeed.
Digital Payment Options Drive Conversions
The payment experience is no longer just an afterthought when it comes to transactions. Now, clients will actively choose one financial provider over another if the former has a better range of digital payment options. Having very few choices for digital payments, or having none at all, could also work against a provider. For instance, a prospective corporate client may choose not to transact with them at all based on available payment options. If you want to improve your desired conversions and sell more of your products or services, a versatile platform for various digital payments is key.
Cater to your clients’ demand for round-the-clock convenience by expanding your current payment solution. The faster they can settle their payments—and the less effort they expend on paying—the higher their chances of renewing their business partnership with you.
Cloud-Driven Payment Systems Can Be Managed from Anywhere
Another big advantage of a digital payment system, especially one that’s powered by the cloud, is that you and your staff have fewer constraints to doing your work. As the COVID-19 pandemic has shown, businesses need solutions that allow them to operate across barriers like physical distance and time zones. A big part of that involves completing important financial processes, like accounting and cash flow management, from one centralized repository.
A modernized payment ecosystem will allow you and your staff to oversee your clients’ finances, as well as your own, from wherever you are and at whatever time you work. Money management will no longer be exclusively tied to counting cash and coins or filing papers onsite at your business’s physical branches. Having an up-to-date system will enable you to manage vital financial processes even when you’re off-site or working with a hybrid arrangement. As soon as each individual staff member is done with their tasks, all financial data can be quickly and safely consolidated on the cloud. This approach will allow you to do business with your clients with as few barriers as possible—an ability that’s become more and more urgent as time passes.
Artificial Intelligence Offers Numerous Business Advantages
Before the 2000s, artificial intelligence seemed more like the stuff of science fiction and not a technology that would be widespread among mainstream businesses and their financial providers. But today, AI is no longer exclusively within the realm of a certain kind of conglomerate. Even small and mid-sized businesses, as well as smaller local banks, now have access to powerful AI technologies because they’re incorporated into modern digital payment systems.
Shifting to a more modern payment platform will give you the chance to dispatch modern AI and machine learning technologies to your clients’ satisfaction. These will drive the easy integration of different payment channels to your system and allow you to complete financial processes with greater accuracy and efficiency. Aside from helping you manage different payment channels in real-time, AI can also keep your banking transactions secure from money laundering and phishing. Usage of this technology will improve your institution’s anti-money laundering (AML) compliance and increase both customers’ and regulators’ trust in your brand.
By now, a strong case may have been made for modernizing your institution’s current payment systems so that it can be more competitive in the digital world. But before you take the leap, consider which software you’ll be onboarding and which company will be in charge of the integration. All in all, you’ll get the best return out of your investment by partnering with a trustworthy vendor. Choose to partner with one whose prowess with payment technologies is undisputed, and whose knowledge will prove crucial in adding value to your company’s financial operations.