How Modern Banks Are Easing Business Challenges

How Modern Banks Are Easing Business Challenges

Author: Douglas P. Sutko, Managing Director, Community Banking

Labor shortages, supply chain issues, fraud and regulatory burdens—these are just a sampling of the challenges facing businesses today. From small entrepreneurial startups to established mid-sized firms and beyond, American companies are seeking partnerships to help ease hurdles and improve efficiency. For many, that partner is their bank.  

Modern banks build on solid community relationships to offer more than loans and a secure place for companies to deposit their money. The emerging bank of today is also employing technology that eases the challenges of commercial customers and simplifies financial management. Here are five ways that the modern bank is serving businesses of all sizes.

1. The Modern Bank Goes Digital

Online banking is one of the most important tools modern financial institutions provide businesses today. From simple account management to more advanced capabilities, such as seamless access to cross-border payments and digital loan origination, progressive financial institutions are going all in on online. In fact, a recent survey of bank executives revealed that 79% are increasing their technology budgets over the next two years.

Modern banks are dedicated to supporting companies and simplifying access to their financial information, whether business owners are in their combine, their home office, on the manufacturing floor or anywhere on the go.  

2. Better Data for Stronger Business Decisions

Whether your business feeds the world, safeguards health and safety, or provides other valuable products or services, data is critical to improving operational efficiency and supporting strong decision-making. The modern bank recognizes data as the lifeblood of a profitable operation and is opening doors to new data services.

Centime is but one example. Using advanced analytics and automation, Centime can monitor money movement across the company to automatically predict cash flows. With tools like these, businesses can better manage liquidity by making on-time payments and even take advantage of early payment discounts, to name a few benefits.

3. Investing in Security and Safety

In a recent survey, the majority of responding companies said they suffered losses from fraud, compliance breaches or cyber attacks. The modern bank is working hard to stem the tide of cyber crime and protect businesses with innovative new offerings.

Consider the recent advent of virtual credit cards. This digital card works exactly as a physical credit card but helps prevent fraud by generating a one-time use number. ACH Positive Pay and Check Positive Pay provide additional fraud busting potential, making it possible for businesses to digitally approve payments before the bank transfers funds.

4. Automated Payment Solutions

Imagine being able to digitally send an invoice to customers and then, without additional direction, have that payment approved, electronically paid and automatically reconciled with your company financial ledgers. If it sounds like a futuristic dream, it’s not. The modern bank offers automated payment services to businesses that simplify AP processes, mitigate fraud and offer better visibility into cash flow.

5. Electronic Signatures for the Win

As more businesses turn toward online lending applications and account opening, the ability to submit signatures in a digital format has become critical. After all, what business has time to fill out an online application and then visit the bank to ink the documents?

To support seamless digital operations, the modern bank has adopted electronic signatures, also called e-signatures. When businesses electronically sign a document, a special code is generated that verifies the signer’s identity. This secure code is then attached to the document, giving it a virtual seal of approval. In essence, e-signatures are a digital version of a handwritten signature, offering more security and simplicity to the process of signing documents.

Above all, Customer Service Matters to the Modern Bank

While modern banks are committed to digital capabilities, they aren’t losing sight of the need for in-person contact. Instead, today’s banks are updating branches to improve transaction speed and efficiency, while also providing businesses with more of the tools they need to functionally operate in today’s environment.

About the Author

Douglas is responsible for leading a team that manages and develops relationships with businesses across several industries, particularly manufacturing, construction, service, transportation, and distribution. He enjoys his role at FNBO because it provides him with an opportunity to assist his community.