Historically, commercial and business banking haven’t been as forward-thinking as consumer banking. However, modernizing the digital experience for business users is no longer a nice to have – it’s a demand. By leveraging a commercial banking platform, financial institutions (FIs) can introduce a future-proofed treasury management strategy – focused on simplifying manual processes through automation, strengthening fraud prevention, improving reporting and data analytics, and managing cash flow. 

How have users’ expectations around treasury management technology changed over the past 10 years?

Treasury management technology has evolved from legacy technology and processes, many of which were largely paper-based systems, to complex treasury management systems. These complicated, siloed platforms are creating the next big challenge for businesses – a fragmented ecosystem. With integrations across treasury systems and various banking relationships, these challenges are only amplified as businesses seek to integrate with complementary fintech partners. Now the biggest focus for FIs is transforming legacy and inefficient or complex treasury management processes into a deeply integrated, cohesive user experience. 

“In recent Alkami research, we found that easy-to-use digital banking capabilities were cited as the most important attribute in determining primary FI status. This should serve as a wake up call to any FI focused on the traditional ‘rates & fees’ mindset of winning business relationships.” 

What should a FI focus on when it is looking to elevate its digital treasury management presence?

FIs should focus beyond offering the same solutions as the local bank or credit union down the street to focusing on solving real end-user problems for corporate clients. An end-user centered mindset will allow FIs to focus on things that matter most to your business clients and insulate them from market threats from fintech, neobanks, and tech companies which have made great strides in digitizing the lending process and offering easy access online.

“The threat from fintech is imminent, and your FI should strive to become a fintech faster than a fintech is able to become you.”

FIs that see the importance of investing in market-leading digital technology should look for an innovative provider that offers consumer and business banking in a single platform. Banks and credit unions should also look for a provider that offers an open banking ecosystem that has deep API integrations and the ability to seamlessly plug and play fintech solutions to create better business banking services. Find a platform that can check all of these boxes and your FI will be able to deliver a modern, engaging, and intuitive user experience that will differentiate your brand. 

What do you see as the next round of innovation for treasury management?

The shift to faster payments and simplification of access to information increases security and fraud risks for FIs. In order to be competitive and compliant, FIs need to implement payment fraud prevention technology so that account holders cannot only monitor transactions in real time, but also dispute fraudulent transactions without having to call or walk-in to your branches. Real-time transaction anomaly detection is critical to offering end users the payment capabilities they expect without taking on unnecessary risk.

If you are ready to implement an intuitive treasury management solution, contact us today.