Just about everyone in the business payments space can agree that this is an exciting time to be in the industry. This is the third post in a three-part series that presents perspectives from industry experts across various B2B payments functions: global marketing, corporate products and services, and global business payments - in a Q&A format.
Next up is Rick Burke, Head of Corporate Products, TD Bank who brings a wealth of business payments knowledge and a valuable perspective.
What will be the state of B2B payments in five years?
While there’s been a significant shift in the consumer payments space from paper to electronic, that same shift hasn’t taken place in the commercial space. Over the next five years we’ll finally begin to see real acceleration toward digital for business payments. For some companies, it will be a very rapid acceleration. For others who are struggling with legacy payment and financial operations environments, it’s going to require investment and a significant change in how they do things. Everyone wants to migrate from paper to digital; it’s just a matter of when it makes sense given their business. It’s not like you run into organizations that say, “Yeah, I want to keep writing checks because they’re the best.”
How will banks adapt to meet the future of B2B payments?
Historically, financial institutions have looked at a problem faced by a customer, identified a solution, and then attempted to deploy that solution for every other customer they have. Today’s technology infrastructure allows banks to provide many different solutions with different nuances and different benefits. One solution that works for retailers may not work for the energy industry or higher ed or adult care, for example. Banks will provide a marketplace of solutions that would be incredibly difficult for every company to source on their own.
Will banks still be leaders in B2B payments or will FinTechs displace them?
FinTechs are partners, not competition. FinTechs bring a nimbleness that financial institutions don’t have, and that is really valuable in moving an idea forward and identifying an opportunity. By the same token, the banks have the customers and relationships. Together, banks and FinTechs should recognize what each brings to the table and what they can gain through partnerships, whether it be contractually, referral-based, investment-oriented, or as an acquisition.
To access the full discussion and see what payment experts believe the future holds, check out the ebook - "The Future of Business Payments".
For further insights into the payments industry and beyond, subscribe to SmartPayments.com now and have the latest articles delivered to your inbox to keep you up-to-date on the latest tips, trends and topics.