Banks are now looking to consume B2B payments

The New User Experience: Tracking The Consumerization Of B2B Payments February 2022 - Find out how banks are aiming to consumerize the payment experiences of their B2B customers by relieving their billing and cash flow problems

Businesses face many of the same challenges consumers face when it comes to their money: slow and complex payment processes hamper their ability to manage their finances. Financial institutions (FIs) have tried to address the frictions their business customers face by adopting new technologies, but only a minority believe their efforts are actually working, according to recent data from PYMNTS.The New User Experience: Tracking The Consumerization Of B2B Payments February 2022 - Find out how banks are aiming to consumerize the payment experiences of their B2B customers by relieving their billing and cash flow problems

This is a problem for FIs and enterprises, as business customers view payment friction as a customer experience issue, and FI efforts can be costly when new payment technologies fail to offer strong return on investment. For many financial institutions, payments modernization has not been enough to solve their customers’ biggest money management and payment problems. This is why many financial institutions are changing their view of technology and looking for specific technical solutions for the main problems of their customers.

The New User Experience: Tracking the Consumerization of B2B Paymentsa PYMNTS and FIS collaboration, examines why many financial institutions and businesses are now looking to consume business-to-business (B2B) payments by offering simple, secure, and convenient tools to facilitate and manage transactions. The report is based on a survey of 311 executives of financial institutions with assets of at least $500 million or more that serve customers whose revenues range from less than $20 million to more than $1 billion. per year. Executives were asked about the challenges their corporate customers face in managing payments and finances, and their plans to limit friction in payment processes.

The New User Experience: Tracking The Consumerization Of B2B Payments February 2022 - Find out how banks are aiming to consumerize the payment experiences of their B2B customers by relieving their billing and cash flow problemsAccording to the report, technology adoption is the strategy of choice for many financial institutions to improve the customer experience of corporate clients. FIs have made several efforts to meet customers’ ever-growing needs for fast, secure and transparent B2B transactions over the past year, and they have often attempted to create their own digital solutions to eliminate payment friction. Automated account validation and digital safes are the most common digital solutions that FIs offer their corporate clients to reduce friction in B2B payments.

Most FIs understand that transparent payments are critical to the success of their business customers and are actively trying to improve their payment experiences. Sixty-six percent of FIs say the ability to offer customers B2B digital payments solutions is “very” or “extremely” important, but only 30% say their current solutions are “very” or “extremely” effective to solve the frictions of B2B payments.

Other key findings include:

The New User Experience: Tracking The Consumerization Of B2B Payments February 2022 - Find out how banks are aiming to consumerize the payment experiences of their B2B customers by relieving their billing and cash flow problemsForty-two percent cite the complexity of invoice reconciliation as a major source of friction for corporate customers paying their suppliers. Failure to manage billing can contribute to late payments and poor customer experience for suppliers and businesses.

There is a gap between the digital capabilities offered by FIs with large enterprise customers and those serving smaller enterprises. Ninety-five percent of FIs with large enterprise customers offer digital safes, for example, and 74% of FIs with small enterprise customers offer them.

Most FIs do not have the human resources to develop internal solutions to resolve payment issues. Only 37% of FIs say they are equipped to create technical solutions to their customers’ payment frictions.

To learn more about why many financial institutions and businesses are now looking to consume B2B payments, To download The report.

Comments are closed.