The last two years changed the way that businesses and their vendors interact and pay, and the digital transformation that the pandemic forced upon the commerce world has also altered consumers’ expectations of how they want to pay for goods and services.
Financial institutions (FIs) have worked to meet the needs of consumers, but many are lagging when it comes to providing the same seamless, digital experiences for corporate clients. By becoming not just a bank but a business partner to corporate clients, FIs can attract and retain these clients by helping them maintain satisfying relationships with their own customers in turn. Traditional FIs need to provide the same seamless digital experiences that consumers expect, or smaller and nimbler FIs will take their place.
In the March edition of the B2B Digital Payments Tracker®, PYMNTS explores how FIs are working to improve their digital payment offerings for businesses of all sizes and how digital technologies and automation create greater flexibility in business-to-business (B2B) payments.
Around the B2B Digital Payments Space
While most FIs recognize the demand for robust digital B2B payment solutions, many say their current tools aren’t enough to meet their clients’ needs. Recent PYMNTS research found that while two-thirds of survey respondents acknowledge the need for new digital payment solutions, 30% say their existing solutions are “very” or “extremely” effective in dealing with B2B payments frictions.
Meanwhile, there is optimism about the future. Many businesses plan to invest significantly in digital technologies to help drive new revenue growth and simplify business processes, according to a recent report of more than 300 financial executives. Notably, 21% of respondents said it is “likely” economic factors will significantly impact their budgets this year, down from 39% in 2021, indicating signs of hope from organizations.
For more on these stories, visit the Tracker’s News and Trends section.
HubSpot on How CRM Tools Can Help Improve the B2B Payments Experience
As automation and digital technology proliferate and physical interactions decrease, it has become more important than ever for businesses to offer a frictionless experience and top-notch customer service to both consumers and B2B partners. Digital streamlining of the payments process can pay dividends by providing a clearer understanding of customers’ needs and buying habits, allowing companies to serve them better in the long run.
In this month’s Feature Story, Michael Vittum, senior manager and go to market lead, payments and commerce for Hubspot, talks about how technology, such as customer relationship management (CRM) platforms, can be leveraged to improve the B2B buyer experience.
While consumer sites such as Amazon and DoorDash had already gained traction before the pandemic, they quickly adapted to serve an audience now choosing to avoid in-contact shopping experiences. The same could not be said for B2B analogs, and B2B payments and purchases have lagged behind the consumer market in automation and speed.
PYMNTS’ surveys of FIs find that the pandemic intensified the friction B2B clients experience when managing invoicing and payments. FIs recognize the need to meet these challenges, but they must improve digital transformation efforts or risk losing business to smaller and nimbler FinTechs.
This month, PYMNTS Intelligence looks at how FIs are working to improve their digital payment offerings for businesses of all sizes and how digital technologies and automation make B2B payments more flexible, helping businesses better understand and serve customers.
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