Digital corporate banking applications are currently bringing new developments to the South Asian business sector as online retail banking is growing in the region. Numerous conveniences have been added to our daily lives and corporate operations because of technological improvements. Corporate banking in the digital age is one such advancement. Many services, including banking, auditing, analysis, and training, are now available online. Additionally, the COVID-19 pandemic's forced alteration of the business environment has only reinforced the inevitable transition to digital platforms.
Worldwide demand for digital financial services has increased significantly recently as a result of the epidemic. Users now have access to banking services that previously needed a physical visit to the bank thanks to mobile banking services.Although corporate banking has embraced the digital age, many Asian nations still practice it in the traditional manner. Therefore, a corporate banking mobile application is the answer that can open up new avenues for innovation for the fintech sector, and we at Feather IT have led the way in Bangladesh in this regard.
Why utilize a company banking digital app?
The COVID-19 crisis, which has upended our way of life, is one obvious reason why firms should switch to digital corporate banking software. Businesses are currently being compelled to implement remote working procedures. And there has already been a surge in a number of digital solutions that complement the "work from home" business model and enable regular commercial transactions from the comfort of a person's home.
In addition, they are still compelled to conduct business in public in Bangladesh, where they are from. And many nations around the world are like that. Digital corporate banking solutions are therefore crucial for small firms in the area.
The main lessons learned from such applications are:
establishing easy-to-use platforms for commercial transactions
promoting FDI and international trade
corporate banking services automation
Then, when it comes to technology and business, there is always room for improvement. Internationally active companies will undoubtedly choose digital corporate banking applications; otherwise, they will be severely hampered in the long term. Business operations are aided by the efficiency and automation provided by digital corporate banking solutions.
Asia now leads the world in banking and financial services, with China playing a crucial part in this. The Asia-Pacific area has been producing 43% of the world's banking revenue, according to an article in Asian Banking & Finance. Along with China, other nations including Bangladesh, India, Malaysia, the Philippines, Indonesia, Thailand, and Vietnam are also launching new, cutting-edge corporate banking services to promote economic growth and draw foreign direct investment. Digital corporate banking is relevant because of two key factors: globalization and digitalization. These two events have compelled finance managers in Asian firms to adopt modern, technology-driven methods for forecasting, budgeting, and risk management. The fintech sector in Asia is under pressure to develop novel solutions to assist businesses in operating and competing with their western counterparts due to escalating economic issues, harsher laws, and a constant danger to cybersecurity.
When concentrating on our nation specifically, a strong digital corporate banking solution is required to achieve the government's goal of creating Digital Bangladesh. The goal of this project is to increase foreign direct investment (FDI) in Bangladesh to support its economic development. According to a study by LightCastle Partners, Bangladesh was receiving FDI worth up to 3.89 billion USD before the COVID-19 outbreak. The lack of infrastructure is one of the main obstacles to attracting FDI investment and supporting the growth of businesses. A digital corporate banking system will greatly benefit the Bangladeshi economy by enabling international MNCs to conduct their multi-million dollar transactions without difficulty and local firms to conduct significant transactions both domestically and overseas. Whether it is for a huge firm or a sole proprietorship, a powerful corporate digital banking application will offer user-friendly dashboards and analytics tools to assist the managers who would be using the application in getting a holistic perspective of their business activities. And corporate managers or decision-makers can send money automatically and even in large amounts. With the touch of a button, this makes it easier to pay off paycheck transactions, utility bills, and other operating expenses. Global transaction limitations and security features like biometric authentication and retina scan are also in place to comply with international laws. By developing digital corporate banking solutions, Feather IT goes above and above to provide the greatest digital solutions to enhance our nation's infrastructure.
Looking to the future of corporate digital banking
According to a Boston Consulting Group paper, future technical advancements will significantly disrupt both corporate and retail digital banking systems. specifically by blockchain technology and artificial intelligence.
This comes as no surprise given that blockchain and AI are the next evolution in digital banking because of the security and automation they provide for the financial sector. And during the past few years, offering financial services through digital media has become the norm. But the current banking processes are faced with a lot of difficulties because of this. Banks would be pushed to redesign their customer journey model and create a business strategy that is digitally viable given how quickly technology is evolving. At the moment, Malaysia, Singapore, Cambodia, Laos, and the Philippines are leading the way in Asia for advancements in the field of digital banking. Bangladesh is not far behind, but if we don't advance and make use of digital breakthroughs, our infrastructure would still have a huge gap.
For context in Asia, The Straits Times, a Singaporean news source, said that there are currently more than 200 banks operating purely online, with a combined market value of $15 billion USD. And Asia is home to one-fifth of these banks. Even numerous non-financial businesses, including Singtel and Grab, are making investments in digital banking tools. This poses dangers to conventional banking institutions that serve corporations, since any sizable disruption might swiftly outpace the traditional corporate banking services—a problem that has recently plagued the retail banking industry. Therefore, banks are implementing digital platforms and technology to aid in their survival as the world of banking services is being disrupted.
Bangladesh's economy, like many others in Asia, is primarily dependent on foreign direct investment and international trade. Consequently, a digital corporate banking solution will support Bangladeshi businesses and expand our economy. Additionally, there is still room for improvements and the addition of additional features to the current digital corporate banking system. Only 49% of users of corporate banking were happy with the banking services, according to Oracle. Furthermore, just 8% of banks genuinely offer corporate banking services. According to Oracle, 79% of banks would need to alter their current business practices in order to take advantage of the prospects for automation, agility, and capital management that a digital media offers. And only the western hemisphere of the world is represented by those figures!
Bangladesh now has a significant chance to innovate in the field of digital corporate banking. Moreover, Feather IT has already developed a solution that will enable banks to better serve their business customers. With the help of these, we expect to see Bangladesh take the lead in the development of global banking and fintech services, introducing cutting-edge technologies from our remote region of the world.