It goes without saying that to have your business perform well in the ongoing internet age, you need a solid arsenal of digital tools. From payment portals to chatbots, technology is necessary for your business to manage day-to-day tasks and keep up with consumer demands in a digital era. Financial transactions make up a large part of your daily operations, and as such, it should be among your priorities to choose a banking partner that makes use of technologies built to maximize efficiency, ensure security, and boost performance and productivity.
This set of technologies is what we call a tech stack. Simply put, a tech stack serves as the technological foundation for all operations, including client-facing and back-office tasks. A tech stack includes tools such as apps, frameworks, programming languages, digital storage technologies, and tools for software and app development.
Since customer transactions serve as the lifeblood of your business, it’s vital for your banking partner to have the right tools to help you seamlessly handle these transactions—as well as the customer concerns that may result from them. In this article, we’ll flesh out the reasons why your chosen bank’s tech stack matters and how it plays a big role in improving your business’s strategic and operational postures.
It Can Make Payments Easy to Manage
Payments processing is a core aspect of business operations that largely dictates the quality of customer experience. In general, customers favor payment channels that can complete real-time transactions 24/7. Banks with an innovative tech stack should involve capabilities such as cloud computing, which are necessary to support peer-to-peer (P2P) money transfers as well as online shopping and digital transactions via a broad range of payment channels.
That said, it’s important to choose a banking partner with a good track record of helping other enterprises in your industry stay on top of such transactions. Ideally, that bank must employ a modern treasury management system that allows it to efficiently manage its own cash flow and liquidity while mitigating financial risk. This eases the burden of overseeing transactions and enables you to put more focus on other operational aspects and value-adding tasks.
It Can Integrate Security into Transactions
The COVID-19 pandemic has made it clear that most businesses are keen to implement self-service features that allow transactions to be made remotely. With this, it’s important that your banking partner employs a tech stack with the right tools for ensuring that every transaction is made securely, even if such transactions are made through customers’ own devices. One such tool is biometrics technology, which allows your bank to rapidly authorize transactions through methods like fingerprint scanning and device verification. In a nutshell, a competitive tech stack should give your banking partner the ability to support digital transactions without sacrificing security.
With tools such as artificial intelligence (AI), machine learning, and robotic processing automation (RPA), your bank can immediately detect security risks and respond intuitively. These technologies are essential to support self-verification not just for payments, but also for integrating digital account opening and lending options.
It Allows You to Deliver Customer-Centric Services
One of the hallmarks of an effective banking system is customer-centricity. Today’s consumers crave instant, flexible, and user-friendly experiences that are tailored for an on-the-go lifestyle. Technologies like cloud and internet of things (IoT) allow customers to complete payments through the options most convenient for them, including through point-of-sale (POS) terminals and digital wallets.
To improve customer service, your bank needs to have an efficient Customer Relationship Management (CRM) system that can promptly address customer concerns at any hour. One popular CRM tool is the chatbot, which is essentially a digital AI assistant meant to serve as a solution to high volumes of customer queries, long wait times, and lack of staff. Advanced chatbots can provide readily available answers to common questions while also providing the option for customers to talk with a human agent if necessary. This can greatly benefit customers who seek a more personal experience and communicate with someone who can deliver unique solutions based on specific scenarios.
It Can Help Ensure Business Continuity and Avoid Losses
Running a business means working to ensure that every penny is well-spent and that large revenue losses are prevented. A high-performing banking partner with an efficient tech stack prevents instances of prolonged downtime and cumbersome transactions, mitigating the costs that come with such issues.
A cloud-based banking system, in particular, is more likely to allow transactions to push through seamlessly unlike outdated, siloed systems that take too long to get back up and running during a system emergency. This promise of business continuity allows you to have a steady income stream—and better peace of mind along with it.
Tech-Savvy Banking Tools for a Tech-Savvy Business
To stay competitive, businesses should go beyond awareness of current tech trends and actively implement next-generation tools that support mobile, online, and omnichannel operations. But beyond launching innovative products and modernizing backend operations, enterprises must also make sure to embrace a future-oriented way of managing transactions. To do this, businesses must choose banking partners that take advantage of the right tech stack. Ultimately, the banking tech best suited for a competitive landscape must be seamless, efficient, and most importantly, tailored around the cons