Industry insights

Banking innovations: Shaping the future of finance

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Banking as we know it is evolving, which is good news for your small business. Innovations in finance—from how you secure working capital to how fast you’re able to pay vendors—are changing everything. These digital banking innovations will completely disrupt traditional notions of everyday business and create opportunities that were before unthinkable. Companies that adapt to this new reality will reap the benefits on a grand scale.

Sounds like a lot, right? It’s not.

This technological revolution in finance is happening as we speak, enabled by fintech solutions that are rapidly upending traditional ways of banking. Think of it as a banking transformation. New products, services, and emerging tech like artificial intelligence are already reshaping the financial landscape.

What you need to know

  • The latest financial technology, including AI, is changing how we interact with money.
  • With the rise of online banking, businesses can manage their finances 24/7.
  • A recent survey found that 78% of people prefer to bank on their app rather than at their local bank branch. 

Digital banking platforms

Today, you can manage everyday banking activities from anywhere your business takes you, and in ways previously not thought possible. Many times, with no human involvement and new levels of convenience and utility.In addition to convenience, there are security features in place that help you do your online banking with confidence. Quantum computing and AI are the next frontier and promise even more innovation in finance.

Digital banking platforms also allow tailored products and services to reach niche communities in more personal ways, including business checking accounts with multiple plan options, accessible working capital opportunities, and business credit cards designed specifically for small businesses.

Artificial intelligence (AI) in banking

“AI” is a hot buzzword right now, triggering fear and optimism in equal measure. But taking a step back, what are the implications of artificial intelligence in the banking space? Well, the short answer is: they’re huge.

According to McKinsey, banking industry trends like generative AI could increase productivity by 5% and reduce expenditures by up to $300 billion globally. And that’s just the beginning. AI has the capability to put innovation into hyperdrive, creating vast efficiencies effortlessly that can increase growth by leaps and bounds—all while navigating the choppy waters of risk and compliance and staying well within any budget.

Here are just a couple of examples of how AI will impact business banking.

AI-powered chatbots

AI-powered chatbots have the ability to create personalized product experiences rendered in human-sounding language. These interactions feel natural, which can turn self-service into an opportunity for deeper connections with customers. This revolutionary banking technology is designed to truly understand user needs and react accordingly, taking customer service to a whole new level.

Risk management

A data breach can be catastrophic in banking. Here, AI will play a significant role in detecting and preventing fraud. One way it does this is by analyzing vast amounts of data, then assessing patterns and deviations to detect fraudulent activity. This shifts the risk management paradigm from reactive to proactive, helping give business owners peace of mind over their finances.

Biometric authentication and other cybersecurity innovations

The rise of innovative banking solutions unfortunately brings with it a rise in malicious activities. Cyber-attacks, financial fraud, phishing schemes, and other crimes are proliferating with no sign of stopping. In fact, cybercrime increased so much, it’s already considered the biggest threat to the financial sector overall. The losses have been immense. The IMF reports that extreme losses due to cyberattacks have quadrupled since 2017.

All of this illustrates why cybersecurity is such a critical component of digital banking. Today, there is a whole arsenal of creative protection measures at your disposal. One of the biggest defenses against digital banking fraud is biometric authentication. That’s when your physical characteristics are used to verify your identity while trying to access private, protected account data. Authentication methods can include fingerprint scans, facial recognition, voice authentication, and retinal identification.

Many banking tools also use multi-factor authentication to help protect your account. This essentially adds another layer of security to combat identity theft and account takeover fraud.

The advantages of protecting your business bank accounts are clear. There are cost savings related to account and password recovery, as well as an associated reduction in security costs around data loss and theft of sensitive information. Overall, a more secure banking experience for customers helps build trust and loyalty for banking platforms, which is a win-win.

In the future, this technology may evolve to include behavioral biometrics. This is a

machine learning approach using algorithms that analyze user behavior to help prevent fraud. Another potential use of this tech is with wearables that store biometric info for contactless payments.

Mobile banking and payment solutions 

Digital banking isn’t just a trend. More and more, it’s how people manage their finances—period.

One study shows that the use of emerging banking technologies like mobile apps for primary account access has risen from 15.1% in 2017 to 48% in 2023. For small business owners, it’s convenient and more efficient to track expenses, manage budgets, and pay bills from one online platform. Not only do mobile banking platforms help save you time—in a lot of cases, your business can save money on fees, too.

Looking ahead, the popularity of mobile wallets will continue to increase. Nearly everyone is on a connected device these days, so it only makes sense that apps embedded with your banking info are being used to make payments with just a wave or tap.

What is open banking?

Open banking allows online platforms to leverage the latest progressive finance innovations so they can better serve their customers. Third-party apps can bring together all your business finances and expenses into a single app. These advancements in financial services access customer banking data safely and securely so customers can take advantage of more services from a larger group of providers.

Open banking enables:

  • A more customized banking experience
  • Access to alternative payment methods
  • Faster and more secure transactions
  • Real-time visibility into your financial activity

The full potential of open banking is yet to be achieved, but headway is being made especially around regulation. The number one concern is data protection. Governments and regulators are working day and night to create the necessary privacy frameworks to safeguard customer information.

In 2018, Europe set a new standard with the General Data Protection Regulation, which gives consumers more control over their data and how it’s used by the agencies that collect it. Other countries are poised to follow suit, but as of this moment, the United States has yet to do so.

Personalized financial services

Customer experience is king in most industries, and business banking is no different. With so many apps and services to choose from, financial institutions need to up their personalization game to stand apart from the rest. This means tailoring services to individual needs—or in this case, business needs. But how is that accomplished at scale on a digital network? By using the power of data.

Applied strategically, companies are using big data to build comprehensive profiles of all their customers, including geographic info and usage behaviors around things like search terms. From this, offers and unique marketing campaigns can be created that truly land, connect, and provide real-time value.

Once you become a customer, the best banking platforms know how to use personalization techniques to enhance your experience—especially when it comes to serving you new offers or resolving customer service issues. Examples of personalization in business banking can be as simple as including your first name or business name in the subject lines of emails, or as involved as highlighting blog content that’s relevant to your product usage at the bottom of emails.

What it all means for your business

As you can see, the wave of innovation in banking is only getting started. AI, machine learning, biometric security… Just a few years ago, these concepts would’ve sounded like science fiction. Now, it’s everyday business.

So, what’s next?

Perhaps the most exciting breakthrough is how the barrier to entry has been lowered for businesses. With so much competition in the banking industry, you have the luxury of finding the right fit for your business needs, whether you’re looking for one specific function, or a whole suite of financial tools that keep your business running smoothly and efficiently.

Explore Bluevine Business Checking, complete with a full suite of banking tools.


This content is for educational purposes only and should not be construed as professional advice of any type, such as financial, legal, tax, or accounting advice. This content does not necessarily state or reflect the views of Bluevine or its partners. Please consult with an expert if you need specific advice for your business. For information about Bluevine products and services, please visit the Bluevine FAQ page.

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This content is for educational purposes only and should not be construed as professional advice of any type, such as financial, legal, tax, or accounting advice. This content does not necessarily state or reflect the views of Bluevine or its partners. Please consult with an expert if you need specific advice for your business. For information about Bluevine products and services, please visit the Bluevine FAQ page.

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