8 in 10 Small FIs Say Corporate Customers Face Money Management Frictions

Financial institutions (FIs) are pressed to address a number of key business-to-business (B2B) payment frictions, and many are currently working on or planning to work on digital solutions to these challenges.

Money management, invoices and payments, data management and providing supplier portals are top concerns among organizations of all sizes, according to “Meeting The Challenge Of Payments Modernization,” a PYMNTS and FIS collaboration.

Get the report: Meeting The Challenge Of Payments Modernization

Smaller financial institutions are more likely than other FIs to report that their corporate customers experience challenges with money management when making payments to their suppliers, with 79% of community banks and 77% of credit unions reporting so.

These challenges relate to working capital management, spend management, real-time cash flow management and real-time reporting.

Large banks are more likely to consider data management to be a challenge, with 82% of large international banks and 71% of large national banks reporting that is a challenge experienced by their corporate customers.

Almost all FIs are currently working on or planning to work on digital solutions for invoices and payments and for mobile and digital payments.

Smaller FIs are currently tackling or planning to tackle their corporate customers’ top challenge — money management frictions — with 82% of community banks and 80% of credit unions reporting they are working on digital solutions to this end.

They also have on their agenda digital solutions for multiple payment choices, as 83% of community banks and 77% of credit unions cite that area.

Large banks, too, are currently working on or planning to work on digital solutions for money management and for multiple payment choices.

Large national banks are also currently working on or planning to work on payment integration with enterprise resource systems (ERPs), as 73% say they are doing so.

Although their corporate customers experience challenges with data management, less than one-third of all FIs surveyed report that they are currently working on or planning to work on digital solutions in that area.