Electronic commerce has fundamentally changed the way businesses do business. In fact, some research indicates that e-commerce sales alone will account for almost 14% of all retail transactions in 2019. It’s more important than ever to have good financial practices in place to grow the business. business and connect with customers securely, securely, and easily.
Banking practices have changed in some ways to meet customer expectations and technological demands expressed by e-commerce experiences.
Applications of e-commerce in banking
Here are some of the most important current applications of e-commerce in the banking industry.
1. Electronic invoicing
Electronic invoicing is one of the main benefits that e-commerce has brought to consumers and businesses. Banks now offer the option to automatically pay your bills through their website or on their app. Businesses can send electronic invoices to their customers and receive payment automatically instead of waiting and cashing a physical check. The link between the ability of banks to send and receive payments digitally and the rise of e-commerce as a primary driver of sales and revenue in many businesses is no coincidence; it would be almost impossible to actually have one without the other.
2. Identity verification
Banks can and should take identification very seriously. The job of a credible financial institution is to ensure that the person spending is the person who should have access to the funds in the account. It became more difficult as the technology progressed. But the technology has also helped spur innovation in the ability to confirm identity and other credentials so that customers can complete their e-commerce transaction more securely, without the possibility of theft or leakage. of data. This identification process is not only a protection for the customer, but also for the retailer or the seller. It is the responsibility of all stakeholders – banks and e-commerce retailers – to adhere to standards for identity verification and customer information security.
3. Mobile payments
Mobile commerce, or m-commerce, is an important part of e-commerce. Mobile-centric commerce has become a new normal for many people who can now buy everything from dog sitters to airline tickets from their phones. However, a smartphone has become another important e-commerce tool – a digital wallet. Customers can now pay most of their purchases in person with a smartphone app, whether it’s a bank-backed credit card app or an app like Apple Pay that bundles payment options. for different financial sources of customers in one place for easy payment. While mobile payments are more often used to describe digital in-person transactions, they certainly arose from the application of e-commerce in banking.
4. Digital-only banking services
E-commerce has enabled payments and transactions through apps, paving the way for re-education in physical physical banks. While many large banks with an e-commerce presence still have in-person presences in certain communities, many banks have opened as online-only operations, like Ally. Mortgage brokers have also joined the only online financial trend. The fact that users interact with their banking transactions primarily through an app is consistent with how consumers interact with many other aspects of their daily lives, from paying for coffee and ordering groceries to shopping. doctor’s appointment, etc. Exclusively online banks can also provide a better banking experience by often being able to offer customers a better interest rate on savings accounts or loans because of the money the bank itself has. was able to save money by not having to pay overheads like rent etc.
5. B2B innovation
The e-commerce experience has changed the way B2B buyers anticipate buying and selling experiences. This is largely due to the involvement of e-commerce in banking in B2C spheres. E-commerce has enabled banks to offer faster account opening, digital bill payments, and other amenities that B2C buyers have long enjoyed. B2B buyers have experienced these characteristics in their non-business life and demand in the marketplace that their B2B experience be more cohesive and match the rest of modern life. E-commerce and banking therefore have a responsibility to continue to improve the customer experience.
6. International trade
E-commerce has made it easier for people to bank abroad or pay for goods and services from another country without having to circumvent banking regulations or exchange rates. Third-party vendors like PayPal act as an intermediary for e-commerce retailers and financial organizations and banks.
E-commerce has created many opportunities for banking services, and e-commerce applications in the banking industry continue to grow as retailers and financial organizations strive to create a better customer experience through technology that will help businesses in the future. two sectors to increase their income and strengthen themselves. their brand.