As a business person, you become more empowered if you know more about your cash flow and how technology works. Nevertheless, one gets completely involved in other daily issues, which sometimes eclipses cash-flow concerns.
Cash plays a crucial role in any business that manages cash flow and the associated value transfers is the most important aspect of a business. Traditionally, payrolls, disbursements, invoices, and receipts were manually processed and paid by cash and cheques. Nevertheless, these conventional payment methods caused a lot of delays, risks, and complexities in terms of recording the transactions satisfied with a payment.
It came as no surprise when the financial services sector came out with solutions for improved technology and payment capability. Corporate banking offers digital cash and liquidity management solutions to businesses, including small and medium enterprises (SMEs) to gain significant benefits like:
1. High operational efficiency in payments
Most SMEs today ease their business’ administrative burden by embracing digital technologies. Digitizing payment is a part of it. Unlike the paper-based payment process, digital payments are instant and paid through integrated payment portals.
Businesses can make and receive domestic payments immediately without the need for any account numbers. For instance, DBS PayNow Corporate allows you to pay using your Unique Entity Number (UEN) or mobile number and receive an instant notification.
The other payment methods include GIRO, FAST, and MAS Electronic Payment System (MEPS). They help you make both individual and multiple payments in the most cost-efficient manner.
For international fund transfers, you can use telegraphic transfers, SWIFT, and DBS PriorityPay.
2. Better compliance
New-age security-compliant solutions help the business by protecting payment information through a secure payment framework. Digital payments come with multi-layered security , which stores the payment information in encrypted form.
For example, digital tokens add convenience to payments. You don’t require SMS OTPs to authenticate your payments. Moreover, the tokenization method in virtual cards limits payments to a certain amount of transactions.
3. Improved cash flow and visibility
With customers getting an opportunity to make payments in their preferred format, SMEs get payments in their bank accounts, without any delay in processing them. This saves the SMEs from having delinquent payments and incurring expenses on their collection.
Further, digital payments help you gain strategic insights into better cash management through real-time revenue performance.
4. Reduced administration cost
Electronic payments are carried out and tracked online. They are generally saved in a spreadsheet on the cloud or a flash drive. The notifications of the receipts and payments are received through SMS (short message service) or email. All these help your business save on administration costs, like the expenses incurred on paper, envelopes, printing, postage, and labor.
5. Improved customer experience
Customers can make digital payments online or via a mobile phone anywhere, anytime. Moreover, they can choose any of the payment formats that are more convenient and easier to carry out. You can convert your website into an e-commerce site by offering digital payment options, which will enhance the customer experience.
In conclusion, financial institutions like banks offer distinctive corporate banking services to meet the financial requirements of small and medium-sized enterprises. Corporate banking helps companies make or receive faster payments, gain higher operational efficiency, and have a better customer experience.
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