5 Practical Ways to Improve the Borrower Experience
Borrowing money is an essential part of our lives. It allows us to afford homes and cars, start...
In this post you're going to learn the top things you should look for when considering new wire transfer software for your financial institution.
But before we get started, it’s important to note that the first few sections of this article discuss the trends, challenges, uses, and new technologies in the wire transfer space. These first few sections are important to help you better understand wire transfer systems overall. However, if you’d rather get right into the seven essentials, feel free to skip the first few sections.
Now let's get started!
In today’s global economy, where international businesses are flourishing, sending and receiving payments can be quite complex and can cause trepidation. It doesn’t help that there isn’t a universal system or method to send and receive money. Of the various methods available, wire transfers have grown in popularity because money can be sent almost instantly, across any distance.
So what is a wire transfer? It's an electronic transfer of funds across a network of banks or transfer service agencies around the world. Electronic funds transfer (EFT) is a general term for electronically transferring money. It uses computer networks to transfer funds from one account owner or institution to another.
EFT includes debit and credit cards, staff payroll deposits, online banking, online bill pay, wire transfers, automated clearing house (ACH) processing, and more.
For years, traditional financial institutions like banks and credit unions have been the primary players in the financial services space. They have a vast trusted global network of similar institutions, which makes them the natural leaders in money transfers.
However, the financial services industry is being transformed by the Internet and digital technologies. Fintech, an exciting mix of financial services and technological innovations, has had a significant impact on both domestic and international money transfers.
Many new operators have developed global businesses using digital technologies and mobile commerce. Their services are versatile, convenient, fast, and cost-efficient. They offer many different options, such as mobile wallets, account credits, cash payouts, and door-delivery services.
Fintech has helped refine these services and reach more people. Internet-enabled smart devices have made digital remittances mainstream. Customers can transfer funds from a mobile phone or any connected device, regardless of the time and place.
Apart from mobile ecommerce and the advent of 5G, emerging technologies such as blockchain and automated wealth managers could also transform financial services. Though blockchain applications are still new, they’re promising and are expected to make remittances faster, cheaper, and more secure.
While new technologies present opportunities, they also bring challenges. For example, your institution might be facing stiff competition from financial service providers who use such technologies.
You’re more vulnerable in terms of security and government regulations because you handle sensitive financial and personal data.
Many of your employees might be against digital mobilization, fearing loss of jobs or the difficulty of learning new systems. Even some of your members or customers, especially from older generations, do not trust a progressive digital approach to their money. They prefer traditional branch banking services.
In addition, adoption of new technologies can be time consuming and expensive. Your bank may be just one part of a huge financial network, which makes it difficult to respond quickly to market changes. You also have to rid your systems of obsolete technologies before you can adopt innovative practices.
However, despite all opposing factors, you can’t ignore the digital transformation and avoid the latest trends in banking technology. Instead, you should transform and adjust by developing and offering products and services relevant to your account holders.
Most consumers demand that banking and financial services be fast, secure, and readily-available anytime, anywhere. However, originating a wire transfer can be a tedious and time-consuming task for the financial institution. This is where having good software can help.
Wire transfer systems are digital online and mobile payment solutions that help create, review, and manage wire transfer processes. They are designed specifically to process payments and to transfer money. They automate all fund transfers, whether domestic or international, inter- or intra-bank.
These systems help financial institutions avoid the manual posting of wire transactions. It also helps reduce risk and allows your customers to transfer funds quickly. They reduce expenses, boost productivity, and save time.
Millennials, who are slowly becoming the majority of customers, want a streamlined online payment experience, quick transactions, 24/7 access, mobile apps, and personalized services. They earn well and always look forward to emerging technologies.
They prefer a transparent, collaborative approach to funds transfers. They want quick and easy solutions, which you can provide easily by adopting an automated system.
Providing your customers or members with a seamless wire transfer service along with your other offerings can help to differentiate your institution from the competition. An efficient system ensures a great user experience by making fund transfers automated, easy, fast and cost-effective. It will also comply with payment regulations and data privacy laws.
Wire transfer software can help you provide personalized digital service, fewer interactions with call centers and branches, and higher quality. Your clients will be able to transfer funds easily in just a few clicks or swipes for reasonable fees.
Providing feedback and confirmation about the status of wires will instill confidence in the consumer that they are in good hands with their financial institution.
In your search for the perfect software, you'll likely come across options that offer a variety of functions and features. How then do you decide which software and vendor is the best fit for your institution? Here are some guidelines.
Choose a wire transfer system that satisfies consumer demand for digitalization but is secure and easy to understand and use. Specifically, it should have the following seven qualities:
Digital banking means more than a simple shift from face-to-face branch operations to mobile payment apps. It means responding to disruptive user behavior and market conditions with an overall change in strategy and work culture. However, before embarking upon major changes, you should prepare well.
In the context of choosing wire transfer software, ensure that the one you choose suits your needs. It should be capable of performing wire transfers of any volume with regularity and ease. You should work with an experienced vendor who develops customizable systems. The vendor should have a proven track record and be well versed in compliance and regulatory requirements.