The Evolving Bank Relationship
Traditional banking relationships have evolved significantly over the years with the constant advent of newer, better and faster technologies. For contrast, think about how it used to be:
In the "old days," small business owners (along with their accountants) relied heavily on a local banker. It was a collective relationship built on trust and familiarity. Bankers were aware of every business in their community and the people who ran them. They would also provide personalized advice and financial services tailored to each business owner’s unique needs. Conversations were face-to-face, relationships were human-centered, and all parties (the banker, the business and the accountant) had an intimate understanding of each other’s operations.
With the shift from local to national banks, personalized service started to disappear, creating a more transactional experience. Even so, having a strong relationship with a banker remained important for small business clients (and their accountants), especially when it came to services like loans, financial covenants and managing the overall financial health of the business.
And while traditional banking models are all but obsolete, today’s modern model should not be interpreted as inhuman. We all still crave the human touch…and it’s still possible to retain it, alongside technology.
Give People What They Want
Advancements in technology cannot be ignored. And while we’ve lost (mostly) the face-to-face piece of the banking experience, modern, tech-savvy business owners still want the convenience of online. In fact, they want a lot more than that, including:
Seamless digital integration across financial operations
Real-time insights into AP, spending, and cash flow
Automated processes for routine financial tasks: The days of paper checks are over...and rightly so
Flexible payment options to accommodate all transactions, including global
Robust security measures to protect sensitive financial data
Powerful business banking platforms address all of these needs and make keeping up with invoices, receipts and expenses much easier, ensuring accurate financial reporting and placing full control in the hands of the business owner.
Comprehensive financial management
Leading solution providers offer an all-in-one solution that combines checking accounts, corporate cards, expense management and AP automation. This integration eliminates the need for disparate, disjointed systems — saving a great deal of time and reducing errors that come from manually driven tasks and workflows.
Enhanced cash flow control
With features like customizable spending rules, high transfer limits and real-time expense tracking, businesses are rewarded with unprecedented control over their finances. This is critical to business leaders who want the convenience of automation but don’t want to lose control and insight. This level of oversight enables more informed decision-making and helps prevent overspending.
A REAL-WORLD EXAMPLE:
A manufacturing client chose not to distribute corporate cards. Instead, they had staff charge expenses to their personal credit cards and then submit for reimbursement. And this all occurred outside of a controlled platform. The process offered no control over spending or receipt collection and a less-than-perfect review process. Over time, staff were charging large expenses (that were not pre-approved). Without proper controls in place, spend got out of hand. Staff also often lost receipts or failed to turn them in. This opened the company up to potential audit issues. At the end of the day, the company took a major cash flow hit at year end, coming up short with no way to pay vendors.
It was a process nightmare. And leaders learned a hard lesson when they identified that annual expenses exceeded initial spend goals by more than 40%.
Cost-effective global transactions
The era of modern banking requires support for global transactions. Top providers offer free wire transfers and same-day ACH payments, along with competitive rates for international transactions. This can result in significant cost savings for businesses operating on a global scale or those looking to scale to a global level.
Scalability and flexibility to support growth
As a business grows, banking needs evolve. Top financial management platforms are designed to scale with growing organizations, offering features like high-yield treasury accounts and the ability to manage multiple operating accounts effortlessly.
The Evolution of Banking Relationships
The bottom line is that modern is in. The traditional banking model no longer supports clients where they want to be, which is living in a highly efficient, flexible digital ecosystem. Using a powerful, all-inclusive financial management platform enables business leaders to transform their operations by elevating efficiency, insight and competitive advantage.
