Bottomline Technologies (NASDAQ: EPAY), a leading provider of cloud-based payment, invoice and digital banking solutions, today announced the launch of Digital Banking 3.0, the first integrated, cloud-ready technology platform that includes cash management and payments, customer acquisition and on-boarding, analytics and fraud and risk management solutions, empowering financial institutions to acquire, grow and fully monetize commercial banking relationships across every digital channel.
“In the next several years, roughly one third of the commercial banking industry’s revenues will be in play and at risk due to the forces of digital disruption,” said Norm DeLuca, General Manager for Digital Banking at Bottomline Technologies. “Banks need to harness the power of digital technologies and accelerate the pace of innovation to aggressively defend their position as trusted intermediaries and capitalize on substantial new revenue opportunities. We created Digital Banking 3.0 to enable banks to win, drive profitable growth and build long-term franchise value."
The transition from traditional to digital banking could threaten up to 35% of global bank revenues.1 Commercial banking is not immune, with an estimated 43%2 of the $300B3 market driven by payments and cash management services that are ripe for innovation. In fact, 62%4 of small to mid-sized businesses already use payments and cash management providers outside of their primary banking relationship.
The Digital Banking 3.0 platform leverages Platform-as-a-Service technology and enables banks to provide business and commercial customers with a unified digital banking experience. While banks have been aware of the critical need to deliver a more unified experience, they have had few alternatives beyond purchasing multiple software solutions and investing heavily to make them work together.
“Our research shows that business and commercial customers want a seamlessly-integrated and intuitive digital experience, better financial management tools and insights that help them manage their businesses more effectively,” said Christine Barry, Research director for Wholesale Banking at Aite Group, an independent research and advisory firm focused on the financial services industry. “Banks leveraging solutions aligned with these market opportunities will not only enjoy a competitive advantage, but also new streams of revenue and greater customer retention.”
Digital Banking 3.0 provides an integrated suite of market-leading cash management and payments services, sales and marketing tools, data and analytics capabilities to manage complex fraud and security risks (see Notes to Editors). The platform is available to financial institutions and businesses of all sizes and is fully configurable.
“Our technology platform brings together a unique combination of financial services offerings which, until now, were largely restricted to single-point solutions that can be overly complex and expensive,” said DeLuca. “Digital Banking 3.0 delivers the seamlessly-integrated experience now required for banks to engage customers in new and more advanced ways.“
Bottomline Technologies is a proven technology partner in the payments and cash management domain, having relationships with over 1,400 financial institutions around the globe, including over 1/3 of the banks in the US with > $10B in assets.
Sources:
1. McKinsey, Strategic Choices for Banks in the Digital Age, January 2015
2. McKinsey, Global Payments 2014: A Return to Sustainable Growth Brings New Challenges
3. McKinsey, Global Payments 2014: A Return to Sustainable Growth Brings New Challenges
4. Aite Group, Monetizing the Small-Business Opportunity, 2013