Compared with the digitisation of retail banking, commercial banking is still in its digital infancy and Australian commercial banks are even further behind their international peers.
Accenture has released its 2021 Commercial Banking Top Trends report, which says that Australian banks’ commercial divisions are the most vulnerable to competition from fintechs and Big Tech because there has been widespread under-investment.
Accenture Australia and New Zealand commercial banking practice lead, Chris Jaggard, said banks need to get more serious about the customer experience in their commercial divisions, just as they have in their retail businesses.
Jaggard said: “Business customers are expecting better. They want more convenience, more reliable service and faster turnaround times on loan applications.
“’Time to yes’ is becoming just as important in the business lending market as it is in the mortgage and personal loan market.
“Companies like Amex and Square, which have access to customer data, are making decisions in minutes.”
“The opportunity for fintechs and other disruptors is greater in commercial banking. We are already seeing Square and PayPal move into the less complex areas of business lending, such as small unsecured working capital finance.”
Jaggard said banks overseas have taken note of what their business customers want and are moving a lot faster than Australian banks to improve their services. Changes include more automation of the back office.
According to the report, the growth in the number of banks offering banking as a service means that an increasing number of non-financial companies are including financial services in their product offerings.