Trends in Digital Business Banking

Executive Opinions on Digital Banking and the Changing
Payments Landscape

Business executives who responded to the JPMorgan Chase Executive Advisory Board (EAB) survey mainly see themselves as digitally savvy, but they’re still running into barriers on the path to becoming more digital.

Executives Are Eager to Embrace Digital Business Banking…

99%

Nearly all respondents say they conduct some degree of their business banking online.

99%

Nearly all respondents say they conduct some degree of their business banking online.

How do you bank?

The majority of business leaders say they prefer to bank online.

Online

81%

In-person

12%

Phone

4%

Other

2%

When it comes to digital banking and payments, business leaders describe themselves as:

Eager, savvy digital adopters 	59%
				Willing to learn	27%
				Neutral	10%
				Skeptic	3%
  • 59% Eager, savvy digital adopters
  • 27% Willing to learn
  • 10% Neutral
  • 3% Skeptic

…But There Are Some Barriers to Increasing Digital Banking

45% do not plan to increase their business’ digital banking

45% do not plan to increase their business’ digital banking

Most survey respondents are already doing business online but still have a mix of complex business that requires in-person or phone contact. Other barriers to increasing banking online include:

Circumstances where face-to-face interaction is preferred

Concerns with cybersecurity

Transactions are cash-based

There are certain activities for which we always go online, while there are other activities for which a phone call, email, or in-person visit is required. We focus on efficiency throughout our practices.—EAB member in the healthcare industry
“There are certain activities for which we always go online, while there are other activities for which a phone call, email, or in-person visit is required. We focus on efficiency throughout our practices.”
—EAB member in the healthcare industry

Cybersecurity is a concern that is top of mind for executives when it comes to digital banking.

How Concerned Are Executives About Cybersecurity When Banking Online?

0 10 20 30 40 50 60 70 80 A little or not at all concerned Somewhat concerned Extremely or very concerned
  • Extremely: 70%
  • Somewhat: 21%
  • A little: 9%

Executives also note that there are some limitations in moving from paper to digital banking.

“Our customers and vendors are not fully paperless and still pay with paper checks.”
—EAB member in the utilities industry

While business leaders appreciate having payment options that fit their specific payment needs, checks are still cited as the most common payment type:

95%
 
Checks
86%
 
ACH
83%
 
Wires
74%
 
Card

Moving Toward a Digital World

In an increasingly digital world, the top three reasons business leaders say they value online banking are:

1.
 
Ability to conduct
business anytime and
from anywhere
2.
 
Greater control
and visibility into
company’s finances
3.
 
Time saved
to focus on
other things
 

Business leaders are eager to use digital banking tools. While they prefer online banking for some business activities, such as account management and sending and receiving payments, they still see the value of personalized service.

I distinguish business banking into relationship and business strategy, which is different from daily operational activity. Daily activities can increasingly be done online, while relationship and business strategy can’t be done online. —EAB member in the finance industry
“I distinguish business banking into relationship and business strategy, which is different from daily operational activity. Daily activities can increasingly be done online, while relationship and business strategy can’t be done online.”
—EAB member in the finance industry

Among the online business banking activities available, these are cited as the most valuable:

0 5 10 15 20 25 30 Repor tin g and analy tics Check fraud/ Account securit y Wire s Receivables Accoun t managemen t Payments
  • Payments: 29%
  • Account management: 26%
  • Receivables: 18%
  • Wires: 9%
  • Check fraud / Account security: 8%
  • Reporting and analytics: 6%
 

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