Meeting small business needs in the changing digital environment
As clients are becoming more and more technologically savvy, they expect to be able to leverage that technology in all aspects of their lives — from ordering their coffee in advance on their phone to sending in a digital ticket to changing their address for their account. This trend is now extending beyond just retail focused clients. Small business clients are also presenting the expectation of a fully digital interaction. This puts pressure on institutions to extend features that have previously only been available to retail clients.
With the introduction of the Beneficial Ownership Rule in 2016, a common concern of financial institutions is that small business clients have very different regulatory requirements than retail clients do. This creates a requirement much different than those of digital retail originations. In addition, there are different documents needed with the ability to digitally append them to a small business account application.
With the global pandemic, financial institutions are also trying to find solutions for reducing the touch required for functions that historically have occurred in the branch environment, from origination to servicing functionality. Digital interactions and the need for low touch services are now a requirement.
Providing secure and easy-to-use digital servicing functions are also rapidly becoming a requirement for institutions for small business customers. Clients need to manage their relationship with their bank even if they are unable to physically see their relationship manager. Ceasing operations is not an option for them.
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