Customer Experience in Commercial Banking

02 August 2018

Following increased amounts of finance being obtained by businesses last year, UK Finance figures released last month showed a contraction in UK business borrowing by 2.5 per cent. However, lending to manufacturers bucked this trend, increasing by 5.1 per cent in the same period. With the performance of the manufacturing sector being seen as a good generic indicator of the UK economy, this must be seen very positively. It would appear the lack of progress on Brexit is causing uncertainty though and the cabinet changes are going to do nothing to calm the waters.

The last few years have seen a number of new entrants in the commercial banking sector, with many challenger banks focused in part or entirely on lending and deposit taking in the SME market. Banks such as Cambridge & Counties and Hampshire Trust have seen great success. Both of these have specific software solutions that to cater for the needs of the commercial sector, such as capturing a company name instead of an individual’s.  This is as opposed to some other lenders who just use retail or residential systems with a few tweaks.At the end of the day, the requirements of commercial lending are fundamentally different and working with a software supplier that offers this specialism amongst other offerings, de-risks implementations enormously.  

In the job that I do, I get involved in many tender processes for all types of system requirements. What is interesting is there is a definite split in train of thought between banks. There are those that try to work with a single supplier to provide as much capability as possible (as one CTO once said to me, he’d rather have one stick to hit one supplier with!), and those that are willing to pull together best of breed suppliers to create their required banking experience. Clearly the latter allows more scope to individualise a proposition and Atom Bank is an example of an organisation that has achieved this.

Phoebus has worked in both scenarios successfully, providing both the end-to-end solution and also powering robust automated back office capability, then interfacing with other solutions via API’s to allow for a bespoke customer experience. It is important that technology suppliers have an agnostic attitude and do not insist on wanting every piece of the “solution jigsaw”.  

New entrants are forcing change in the SME market by encompassing modern technologies. In the same way, millennials are insisting on different user experiences for personal finance.  The same generation will be the business owners of the future and therefore it is fair to assume that more modern looking, feature rich, commercial lending and savings solutions will be required to attract their business moving forward.

Media contact

Debbie Staveley
Director and Owner,
bClear Communications

+44 (0)1275 542 511


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