ADDRESSING THE B2B OPPORTUNITY Five top trends for financial institutions

The business-as-usual baseline is higher than ever. For financial institutions who are known for good service it can be tricky to truly differentiate. At the same time, businesses that don’t satisfy their customers tend to have a limited trajectory. While the challenge of delivering services that go above and beyond is considerable, there are several innovative ways you can lock in loyal business customers and stand out from the crowd. Here are five top commercial expectation trends that can help.

Clive Cornelius and Edward Galvin

Top trend 1: Digitalization of B2B payments

There are, understandably, countless memes of businesses drowning in paperwork. Small businesses, especially, face a herculean task in keeping track of all the commercial payments going in and out. Shifting to digital payments offers these businesses efficient payments, simplified transactions, and faster settlements.¹ We expect digitization to be key for financial institutions who want to offer standout service. Indeed, the global shift to digital B2B payments represents a $120 trillion opportunity in global payments volume.¹

Virtual cards are one powerful tool we would encourage more financial institutions to embrace. Visa research indicates that businesses already using virtual cards were more likely to report growth over the preceding two years than those who didn’t use virtual cards.² Furthermore, more than 1 in 5 businesses already using virtual cards in the UK, U.S., and Australia reported turnover growth of more than 25% in the preceding two years.² Once businesses are aware of these potential gains, financial institutions should maximize virtual card use and acceptance to capitalize fully on the benefits.

Top trend 2: Real-time payments and fast cross-border transactions

Businesses in all regions should be enthusiastic about fast payments – who doesn’t appreciate getting paid quickly? Real-time payments also improve cash flow, free up working capital and reduce costs by cutting out intermediaries and minimizing waiting times. They are also well-established in certain markets – for example, Juniper UK research confirms the majority of A2A transfers in the UK B2B payment market are already taking place on either real-time or faster payment rails.³

Today, there are new options for financial institutions who want to help international business customers safely enable rapid, frictionless movements of funds across borders too. This evolution is exemplified by Visa and Swift’s 2023 collaboration, which streamlines fast B2B payments while strengthening connectivity between two global networks.⁴

Top trend 3: Responsive customer support

B2B customer support should not be looked at as discrete, one-off problem solving. The consumerization of B2B payments means B2B customers expect payments services and support that are cost-effective, digital-first and fast – the same hallmarks they experience in their personal financial lives.⁵ Savvy financial institutions are continually reviewing and improving customer requests, using data and frontline experience to inform upgrades that enhance current customer experience and anticipate future needs.

For enhanced B2B customer support, financial institutions can consider leveraging AI. Dynamic, context-aware chatbots which continually learn and improve based on customer feedback and preferences are replacing static interfaces with pre-populated FAQs. Moreover, AI’s predictive capacity gives financial institutions the power to offer customers the next generation of tools and products to help B2B customers manage cashflow.⁶

Top trend 4: Increased optionality

Financial institutions supporting B2B customers are focusing more on using innovative technology to deliver customizable services. For example, Visa Commercial Pay virtual card solutions help businesses of all sizes solve payments and purchasing administration challenges like controlling spend, simplifying processes and reporting on expenditure. Employees can request a virtual card for business-related purchases including business travel, subscription payments, and contracted or ad hoc expenses.

These virtual cards can be single or multi-use, integrate established approval workflows and include the firm’s unique reference fields. Issued individually or in batches, they offer real-time control allowing managers to tightly manage team spending.⁷

Top trend 5: Payments integration

Payments integration is yet another way financial institutions are making business payments smoother and more streamlined for corporate customers. Payment APIs allow businesses to seamlessly integrate payment processing into existing software systems.

This makes checkout processes more efficient, enhances reporting, and cuts out manual tasks like reconciliation. For example, with the Visa Commercial Pay mobile app, you can add virtual cards to virtual wallets, making it simpler for employees to pay for expenses on the go – reconciliation is automated and virtual card information is communicated all within one secure, central platform.⁸

Conclusion

Despite the challenges financial institutions (Fis) face in satisfying increasingly demanding customers, new technology and a culture of embracing innovation can help you capitalize on emerging opportunities. Both FIs and B2B clients are looking for new ways of making commercial payments intuitive, simple, and stress-free. Working together to make this possible can boost the bottom line and loyalty.