Financial institutions (FIs) and their corporate customers have a common interest in improving business-to-business (B2B) transactions by removing friction from payments and cash management processes.
However, there are also some shortcomings. For example, FIs say two areas that stand out as being the most problematic for their corporate clients when paying their suppliers are invoice reconciliation and the inability to offer supplier portals.
In fact, 42% of FIs say invoice matching is an issue facing their customers, with 9% citing it as the most important issue, according to “The Innovation Gap,” a PYMNTS and FIS collaboration that surveyed 311 executives. institutions with more than 500 million assets.
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Forty-two percent of FIs also cite the inability to offer supplier portals as a key issue for their enterprise customer experiences, with 15% citing it as the most important issue.
Other common frictions faced by businesses of all sizes include poor working capital management due to a lack of cash flow visibility at 34%, slow underwriting at 33%, and a lack of payment choices at 34%. 31%.
Identifying the needs of client companies
It’s pretty easy to see why providers want online portals, for example, Matt Collicoat, head of corporate payments strategy at FIS, told PYMNTS in a recent interview: There’s a benefit in knowing where are found payments at any time of the trip.
Read more: Mobile-First Mindset is more important than new technologies to drive faster and easier B2B payments
Over the past year, FIs have made efforts to meet the ever-growing needs of their corporate clients for fast, secure and transparent B2B transactions, and many have attempted to create their own digital solutions to resolve existing payment issues. However, less than a third of FIs say the current solutions they offer are “very” or “extremely” effective in addressing the challenges and frictions of B2B payments.
Data from PYMNTS also reveals that two-thirds of FIs think B2B digital payment solutions are “very” or “extremely” important. As a result, two-thirds of FIs say they are “very” or “extremely” willing to adopt new technologies to facilitate the consumerization of B2B payments.
The areas where FIs are struggling to offer corporate customers digital payment solutions coincide with the top B2B digital payment frictions their customers are experiencing. Identifying issues and proposing solutions to resolve them can help FIs provide their corporate customers with smoother B2B payment experiences.
Partnership with solution providers
In their efforts to address customer concerns and provide corporate customers with more seamless B2B payment experiences, many FIs may find it beneficial to partner with solution providers.
Financial institutions and businesses looking to eliminate payment friction from corporate customers should seek out technology providers that allow them to offer cutting-edge digital payment tools and in-demand features such as vendor portals without having to mix and match point solutions.
A modern payments technology stack, for example, can consolidate accounts payable (AP) and accounts receivable (AR) services into a scalable ecosystem using modular features to sync with enterprise resource planning (ERP). ) or accounting and banking systems.
Finding the most appropriate technology solution partners to modernize B2B payment processes enables FIs to offer corporate customers the functionality they need to manage and streamline transactions.