Nedbank Corporate and Investment Banking Transaction Services divisional executive Ian Carter
In this opinion article, Nedbank Corporate and Investment Banking Transaction Services divisional executive Ian Carter and Nedbank Business Banking Integration executive head Poovendran Naidoo write that the expectations of business clients when it comes to banking have changed and that banks need to respond appropriately.
As ways of doing business continue to undergo seismic shifts in a pandemic-altered world, entrepreneurs and organisations need to be able to make informed decisions quickly and be supported in those decisions by financial partners that provide them with choice, simplicity, innovation and convenience.
Within the banking environment, the ideal, client-centred experience is a seamless one where the business owner is empowered to simplify complex banking transactions and access solutions that meet their unique business needs.
In an era of instant gratification, when there’s very little that can’t be done almost instantly, business owners are increasingly expecting their banks to meet their needs more quickly, efficiently and cost-effectively than ever before. And given the immediacy of social media, a failure to meet these requirements places more than just the relationship with that particular client at risk. It is a reputational and brand risk that is simply not worth being exposed to.
While it may be tempting for banks to respond to these needs, and mitigate these risks, by simply shifting their entire offerings onto digital platforms and leaving it up to their clients to solve their own problems under the guise of ‘convenient self-service’, the smart bank is one that recognises the value of a more hybrid business banking solution – one that combines the systematic modernisation of the banking environment and the introduction of new technologies with a commitment to maintaining all-important client comfort levels and personal relationships.
Instead of simply ‘ripping and replacing’ technology at high speed, and potentially at higher risk, a more calculated approach is called for when responding to the changing needs and expectations of business banking clients. The more prudent journey is one that starts by identifying key client requirements that can be met digitally, and then building a technology framework that allows the institution to evolve and transform naturally, in line with its clients’ changing needs, but also at a pace that helps them maintain their comfort levels. Using this strategy, it is possible to replace old technology with the new, without clients being impacted in any way other than enjoying an enhanced experience with their bank.
THE IMPORTANCE OF BALANCING SELF-SERVICE WITH HUMAN SUPPORT
Interestingly, in an age where almost everything can be done online, in Nedbank’s experience, the majority of business clients still want a relationship with their bank. Most prefer a blend of autonomous banking when they choose it with the so-called ‘warm digital’ experience that gives them access to the support of a client service representative when they need it.
Of course, this adds a layer of complexity to the business banking ecosystem. Client service teams need not only to be trained to offer in-person support to client, but they also need to be able to help clients digitally when they need support or assistance using online banking applications.
HELPING BUSINESS BANKING CLIENTS NAVIGATE REGULATORY CHALLENGES
The business banking environment is even more complex and regulated than the world of personal banking, which itself is by no means simple to navigate. For example, there are myriad compliance requirements around proof of ownership or shareholding, as well as the capacity of individuals to act as business representatives to complete transactions on a business account. Historically, any changes to any of these regulatory aspects, or the uptake of a new product or service by the business banking entity, have required the exhaustive paperwork needed relating to each compliance aspect to be repeated.
Apart from the obvious environmental sustainability issue of excessive paper use, the requirement for a client to provide documentation that their bank already holds from prior compliance exercises is frustrating and time-consuming for busy business owners. That’s why it makes sense to take advantage of the power of technology to boost simplicity and convenience by storing soft copies of these items in a secure environment that clients can easily refer to when engaging with the bank, rather than having to source and submit originals repeatedly.
THE IMPORTANCE, AND VALUE, OF HAVING EVERYTHING IN ONE (SECURE) PLACE
In response to the increasing expectations of our business banking clients for less complexity, increased efficiency, and greater control, Nedbank recently launched its Nedbank Business Hub. This solution puts a holistic, simple and secure digital banking experience at our business clients’ fingertips. It’s a one-stop shop that provides a real-time view of a business’s financial standing, delivers real and meaningful client-centricity, and significantly improves our business client service levels.
The Nedbank Business Hub also prioritises security, delivering its unique and innovative digital business banking solutions on a platform that protects clients using state-of-the-art security and user authentication protocols, including a mobile solution called the Nedbank Business Authenticator app.
The Nedbank Business Hub represents a significant shift in the business banking client experience in that it empowers users to transact, apply for new products, and submit and track service requests, either through self-service or with support, all from a single, secure location.
It represents Nedbank’s response to the understanding that, in order to thrive and grow, banks need to be aware of, and anticipate, changing client requirements around immediacy, data-driven decision-making, human interaction, reduced admin and complexity, and enhanced convenience and security, and then have the foresight and agility to respond appropriately and in ways that enhance business value.