Innovation in business-to-business (B2B) payments used to be measured in decades, not years. But now, it can be measured in months — even weeks — as B2B payments undergoes profound transformations.
“The three main driving forces are a change in demands and expectations on both the buyer side as well as the supplier side, the changing competitive landscape with new players coming into the market, and the evolving regulatory environment,” Alexander Knothe, head of client solution and partner management at Deutsche Bank, told PYMNTS.
He added that among the trends shaping B2B commerce is the role of partnerships and technological innovation in fostering growth.
Regarding the changing demands of B2B stakeholders, Knothe said businesses are moving toward digitizing their sales, order, invoice and payment processes. This shift is part of a broader trend toward reducing reliance on paper-based methods, such as checks, which remain prevalent in regions like the U.S. but are steadily declining in favor of more efficient digital solutions.
Treasury organizations are “pushing for higher levels of automation” manage payments and financial data with minimal intervention, Knothe said, adding that the integration of advanced payment tools directly into enterprise resource planning (ERP) systems has been key in enhancing payment tracking, reconciliation and reporting.
The drive toward digital payments is not limited to the internal processes of businesses but is also reflected in how buyers demand the same smooth experiences they encounter as consumers.
The relationship between traditional financial institutions and FinTech companies has shifted from one of pure competition to what Knothe termed “coopetition” — a mixture of cooperation and competition.
While FinTechs have expanded their role in providing payments solutions, banks are adapting to modernize their infrastructure and services. This competition has been heightened by a focus on counterparty risk, particularly after big market events.
Knothe pointed out that long-term, stable partnerships are valued in this environment, as businesses seek solutions that extend beyond payments. Deutsche Bank, for example, has positioned itself as a broad-range provider by integrating services like foreign exchange (FX) and working capital factoring solutions directly into its payments offerings.
By leveraging its core strengths, such as underwriting risk, and offering virtual IBAN services, Deutsche Bank collaborates with FinTechs to enhance the speed, reconciliation and security of cross-border payments, particularly in regions where digital adoption is accelerating.
Knothe explained that a cornerstone of Deutsche Bank’s strategy for expanding its B2B offerings is its ability to forge strategic partnerships.
One example is the bank’s collaboration with Salesforce, a partnership that underscores the growing importance of embedded finance and software-as-a-service (SaaS) models. Knothe described this partnership as a “paradigm shift” in how cross-border eCommerce is conducted, as it enables dynamic currency settings and mitigates FX volatility throughout the sales and payment process.
By closing functional gaps on platforms like Salesforce’s AppExchange, Deutsche Bank is enhancing its own service offerings and positioning itself as a player in the future of B2B payments. As Knothe said, the bank’s approach is to build solutions that provide value for all stakeholders — clients, partners and the bank itself — by facilitating more efficient and secure transactions while reducing implementation times and operational risks.
Knothe stressed the importance of leveraging partnerships with FinTechs and other financial players to offer solutions that fit the regulatory requirements of different markets.
This global house bank approach, as he called it, allows Deutsche Bank to serve clients both in Europe and abroad by offering a broad network of financial services and partnerships designed to meet local compliance standards while supporting international business expansion.
The rise of “as-a-service” business models has become a driver of change in financial services. Banking-as-a-service (BaaS) and embedded finance are transforming how banks interact with clients and partners, enabling new revenue streams and faster, more flexible service delivery. Using cloud-based technologies, financial service providers can scale their offerings more efficiently, while data-driven insights help them develop new services in areas like loyalty, fraud prevention and risk management.
As Knothe noted, corporate clients now expect a similar level of convenience and speed in their business transactions as they experience in their personal lives. This convergence has led to the rise of account-to-account payments and real-time settlements, both of which are becoming essential components of B2B payment strategies.
Deutsche Bank, through its initiatives in embedded finance and BaaS, wants to lead this shift. Knothe said he sees these models offering immense growth opportunities for banks. By opening up to third-party developers, Deutsche Bank is expanding its product portfolio while creating new pathways for collaboration with FinTechs and other technology partners.
From the rise of digital wallets and central bank digital currencies to the importance of partnerships with FinTechs and technology providers, the bank is navigating a rapidly changing world.
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