Smarter Payments

Myth vs. Opportunity: The Move to Digital Banking and Payments

Shedding legacy systems to adopt newer digital solutions can feel overwhelming. But don't let some common myths hold you back from making the transition to help drive your business forward.


Shedding legacy systems to adopt newer digital solutions can feel overwhelming. But don't let some common myths hold you back from making the transition to help drive your business forward.

“Eager.” “Savvy.” “A digital adopter.”

This is how 59 percent of US business leaders described themselves when it came to digital banking and payments, according to a recent JPMorgan Chase survey. Another 27 percent indicated they were “willing to learn” more about such technologies. And yet nearly half said they did not plan to increase their company’s use of digital banking.

Though digital disruption is a real and looming business threat, something’s holding these businesses back. What is it?

 

Concerns about cybersecurity, for one. Seventy percent of executives said they were “extremely” or “very concerned” about cybersecurity threats, ranging from malware to internal fraud.

Two, business leaders worried that going digital might alienate customers who weren’t ready to make that shift.

And three, people don’t know what they don’t know. Key decision-makers questioned whether digital banking could handle their most complex business needs.

The Tough Stuff of Legacy

Older legacy technology can pose a greater risk of data breach compared with moving to a new solution. As software and hardware systems age, vendors may provide less support, such as patches to fix known vulnerabilities or functionality upgrades. Consider the WannaCry ransomware attack of May 2017, which affected more than 200,000 computers across 150 countries and resulted in hundreds of millions of dollars in damages. The attack was particularly lethal to organizations running unsupported versions of Microsoft Windows.

Eager but Also Cautious

 

 

Be Cautious—But Don’t Get Left Behind

CFOs are right to approach new technology with care. They are guardians of their companies’ fiscal health, and there’s a glut of technology solutions on the market being promoted by vendors whose job is to persuade them to buy. Smart evaluation and investment require a thorough accounting of a business—its objectives, its systems and its people. No small undertaking.

At the same time, CFOs recognize that many of their competitors are already reaping the benefits of digital banking and payments. And any newcomers will hit the market fully automated and unencumbered by older legacy systems.

How do you practice caution without being left behind?

It helps to have an experienced guide. Today’s commercial bankers are tech savvy and know how to help a company move with clarity and confidence down a logical path to adopting the right digital solutions. They can help you understand and overcome the perceived barriers holding you back from transforming your business.




Where to Begin? A Banking Partner With Digital Solutions Expertise

Digital technologies are transforming every industry. To help your business catch this wave rather than get swept under by it, turn to your banker. An ideal banking partner should have deep knowledge of digital systems and work closely with leading solutions providers.

An experienced, tech-savvy commercial banking firm can help you model the ROI benefits of efficiency, savings, speed and higher profitability that new online solutions can create. They will be diligent and thorough about getting to know your business inside and out. And they should be able to work with you on identifying the right cash management and payment solutions for your business today and your vision for the next decade.

 

1https://www.jpmorgan.com/commercial-banking/insights/trends-digital-business-banking

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