7 key benefits - How your SME can benefit from digital financial services
Digitization has created a new landscape full of opportunities for all industries, having a radical impact on many sectors, such as financial services, which was one of the first to initiate a profound process of digital transformation.
Digitization in the financial services opens up a whole world full of possibilities, both for their own institutions and for consumers, whether they are individuals or companies. Until recently, it was almost impossible to obtain credit online, or that there were banks that only carried out transactions through their mobile platforms.
Currently, the trend towards digitization is increasing. A McKinsey’s research, published in October 2020, found that the probability that companies overall conduct at least 80% of customer interactions digitally is three times more likely than before the covid-19 crisis. According to Consumer Affairs, 80% of people prefer online banking to visit a traditional establishment. The convenience, speed, and flexibility provided by digitization in the financial market mean that there is no need to go to a branch to perform basic tasks.
In the finance sector, this becomes clear when we note the digital advance of customer onboarding, the self-service channels available to consumers and the availability for taking out credit, among other services.
Innovating, optimizing costs, digitizing transactions and providing a good customer experience have been major industry goals for some time, and in this article, we list the benefits that digital financial services give to companies that prioritize the convenience and advancement of technology.
Convenience and control
One of the great benefits is that it is very practical for everyday life. Solving your financial needs on your cell phone or on your computer, you avoid wasting time traveling to the branch and catching lines.
It is very easy and practical to have total control of a company’s finances and expenses, a payment can be made in a few seconds, without leaving the office, instead of waiting minutes or hours at the bank. As with financial transactions, possible account issues can be resolved through online support. In addition, the owner has the possibility to check the balance or check his account statement at any time and place.
Easy onboarding
The time-consuming account opening is one of the main complaints of entrepreneurs, but with digital operations accounts can be opened online. All documents, such as identity documents, can be scanned with the mobile phone camera and sent. This reduces the attrition between financial institutions and customers from the first moment.
Digital onboarding guarantees numerous benefits to SMEs, including:
- Cost reduction, since the process is done quickly and automatically;
- Risk mitigation and greater security, as all validation is carried out with the support of technological tools. In this way, it is possible to easily identify evidence of fraud or failure to send documents;
- Team productivity, which will have more time to perform analytical activities;
- Better customer relationship. Since the analysis is more accurate, it is possible to ensure that only good customers are accepted.
Easy monitoring and tracking of business transactions
Small businesses benefit from digital financial services to manage their finances and to monitor their expenses. By using an online payment platform, business owners can keep track of all their transactions. They are useful when dealing with multiple transactions where accuracy is required. And that’s critical for any business because it makes it easier to make sound financial decisions. The business owner will have a clear picture of where their finances are going.
Lower costs and new forms of payment
A bank branch costs a lot of the costs of a digital bank, for example. After all, the owner will not have high rent, lighting, and salary bills for so many employees. This means that digitized banks do not charge as many fees as traditional banks. Both for institutions and customers, through the use of new means of payment and cashless transactions. A trend that has been increasing mainly over the last few years, According to data presented by Finaria.it, the global digital payments industry is expected to reach the value of $6.6 trillion in 2021, an increase of 40% in two years.
Better data-driven decisions
With the increasing digitization of financial services, data has become one of the most important assets in making dynamic decisions, based on the large volumes of information available to institutions. Technologies like Big Data allow financial services to base their decisions or improve processes on the data available to their customers. In recent times, the arrival of large technology companies has been a great challenge for financial companies, as they have a greater amount of data and a deep knowledge of the technological solutions they offer. These companies benefit as financial services know their needs better.
Multichannel and chatbots
Multichannel communication serves to amplify the company’s voice in all channels where their consumer is, creating a closer connection. In a study carried out by McKinsey, 2020, 71% of consumers prefer multi channel interactions and 25% express a desire for a fully digitally enabled private banking journey with remote human assistance when needed. Chatbots also gain prominence, being able to improve the customer experience by releasing consultants. 64% of consultants with chatbots say this allows them to spend more time solving complex problems – compared to 50% of consultants without chatbots (Salesforce, 2019).
Nice UX
Advances in technology comprehensively improve the user experience and enhance the financial and omni-channel system as it evolves to a customer-centric model. This implies that technology analyzes solutions to deliver tailored products and services to users. According to Statista, 62% of consumers have a better understanding of their financial situation thanks to mobile banking. One of the channels that have required the most investment from companies, and which excels in the knowledge of their customer’s preferences, purchasing behavior, and attitudes towards risk and financial health.
It is clear that consumer needs have been changing very quickly and SMEs expect financial services to adapt to the new times. Modernization in this sector means being able to meet ever-evolving expectations and easily and equally respond to the diversity of customers today and in the future. COVID-19 has accelerated the changes, opening up new shifts towards contactless payments, online/application-based banking and other needs that consumers will continue to seek.
The definition of a good financial service has changed and as modernization becomes the way of the future, it is up to the financial system to take advantage of new solutions, tools and features that will support innovative options for customers.
Access to digital financial services in companies offers a possibility for them to grow in their markets, increase productivity, save time and without raising costs. The digital financial services/company relationship becomes more solid and direct, which generates benefits for both sides – for the digital financial services, which gets to know its audience better, and for companies, which brings the best products.
Discover everest and transform your company’s life
everest is an online platform offering easy banking to small and medium-sized companies: instant onboarding, online current account, multiple credit cards, and automated expense management plus other relevant features. Thanks to everest’s powerful tools, business teams can optimize financial flows and accounting by assigning flexible credit lines and saving time on efficient reporting.
everest offers an innovative payment and cash management flow platform for businesses that addresses clients ranging from small businesses & startups to established growing enterprises use everest to make their daily banking operations easy.
everest provides quick access to business online banking services.
- Expense management tools – everest allows you to monitor expenses, get monthly statements and organize your expenses by categories and tags. Scan receipts and attach them to transactions instantly.
- everest Current Account – With an everest account, send, receive and schedule payments using your current account and IBAN. You can make contactless payments, make euro transactions, make online purchases, regular transfers and collect payments easily.
- Debit / credit cards – Flexible credit line: everest™ offers a grace period of 35 days, so you can repay your balance in full at the end of the month without any fees or extend the repayment period for up to 45 days if necessary.
- Alerts & card controls – Get as many cards as needed – virtual and physical cards-, freeze and unfreeze cards and change cards’ spending limits, limit transaction amounts and PIN in seconds. Receive instant payment notifications to better track expenses.
Community deals – enjoy special discounts on travel services, car rentals and office spaces with selected partners.
Learn more on everestcard.com.
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