For decades to come, humans in various industries will keep pointing at the 2020 Covid-19 pandemic as a trigger for many ground-shifting changes. The banking industry is not exempted from this. While the pandemic-induced pressure is enough to cause drastic changes, the rise of non-traditional banks has made it necessary for traditional banks to innovate if they want to stay alive.
4 Key Aspects of Tech Business Banking for 2023
The question is, what are the things the tech business banking sector has to focus on in 2023? In these volatile times, it is important for banks servicing businesses to focus on what is crucial. Here are four important areas that need undivided attention in 2023.
1. Partnership with Fintechs
A few years ago, partnering with fintech companies would have been something of a taboo. However, the tides are changing as it has been seen that both parties can co-exist with mutual benefit. For business banks, this opens them up for opportunities such as increasing the speed at which activities are run as well as efficiency. There are several ways this can play out. It could be in the incorporation of Fintech APIs or direct links to services rendered.
According to Forbes, many partnerships with Fintech haven’t been yielding the expected results. This is an indication that innovation shouldn’t be done in the spirit of joining the bandwagon. There need to be efficient structures that are put in place to facilitate the relationship that traditional banks have with Fintech companies. This will go a long way in addressing the bottlenecks such as lack of experience, inefficient personnel, and integrations that have been highlighted in such partnerships. Proper structure and management will ensure that the decision-making process is streamlined and the details of benefits are well-defined for easy implementation. The list is exhaustive on what proper structure can help businesses achieve with their relationship with tech.
With the boom in the volume of data available due to digitalization, business banks can put them to good use in understanding their customers. They should also consider how the gathered information can be used to deliver services that are tailored to each of their customers. In the past, this would have seemed a daunting adventure but artificial intelligence in banking has made this an achievable feat. In 2023, business banks should be considering how they can use data to deliver a personalized customer experience across all platforms. An example is using data to predict the best offer for a particular business or helping each business to understand its personal finances better.
4. Digital Currency
It is delusional to ignore the impact that cryptocurrencies have had on the financial sector in the last five years. With massive adoptions witnessed by corporations and the government, it is wise to make plans for this in 2023. Recent developments have also seen regulatory efforts by government agencies to ensure crypto becomes safer for the public. This has also opened the veil on another innovation in digital currency, which is money that is exchanged over digital networks exclusively. By implication, business banks need to consider investing in blockchain technology that powers these networks. There are warnings for a potential recession in 2023, and businesses that have prepared for the stormy season are more likely to survive. For business banks, innovation is an essential tool for survival.
Innovative Strategies in Tech Banking for 2023
In an industry as sensitive as banking, it is absolutely crucial to stay on top of innovations and changes in industry methods. The coming year is going to be a trying one for financial institutions. For a tech banking business, your ability to keep up with the speed of innovation will indicate the potential growth of your business.