5 business banking trends to watch in 2023

The digital banking landscape is in a constant state of change. As we enter the new year, financial institutions (FIs) are preparing for a range of anticipated changes and trends that will impact the way they operate. Here are five key trends worth noting in the business banking world in 2023:

1. Increased adoption of digital payments for B2B transactions

The gap between paper checks and ACH credits is widening, and businesses are starting to see the value in reducing float time (the time it takes for a payment to clear) and negotiating better payment terms by paying vendors via ACH credit. This trend is being driven by a variety of factors, including the pandemic, which has accelerated the shift towards digital payments, and the rise of international payments systems like ISO 2022 and FedNow.

2. Impact of rising interest rates on banking operations

After a long period of low rates, FIs are evaluating how rising rates will affect their operations. For example, tools like controlled disbursements and sweeps, which were not viable in a low-rate environment, may once again become useful. Additionally, the trend towards buy now, pay later financing options may change as the cost of borrowing increases.

 

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