For many years, companies relied on banking tools provided directly by banks for payment transactions. However, these tools are now outdated and pose significant risks.
In this article, you'll learn about the limitations of traditional banking solutions and how to set up a modern banking environment that delivers real value for your organization.
The problem with traditional banking solutions
Conventional banking tools are primarily designed for exchanging data between customers and banks and for efficiently processing payment orders. Simply put, you import payment files into the bank’s tool, trigger the payment, and export account statements. That’s usually the extent of their functionality.
Do these solutions create sustainable value for businesses? No – and that has never been their goal.
As a result, many companies end up with isolated solutions that only cover data transfers without ERP integration, automated checks, or consolidated reporting. Processes remain manual, redundant, or simply inefficient.
Typical weaknesses of bank-centered solutions
- Bank processes instead of company processes in focus: Optimization is one-sided, reducing efficiency for the business.
- Technological dead ends: Many solutions require local installations, aren’t cloud-ready, and lack API interfaces.
- No end-to-end integration: Payment data has to be exported, checked, and transferred manually – often via Excel.
- Limited transparency and control: No consolidated view of all bank accounts and payments in real time; cash positions must be compiled manually; liquidity and compliance risks may go unnoticed for too long.
Why banking needs to be part of an integrated finance process
Companies with multiple banks often use separate software for each one, each with its own approval workflows, different data formats, and no centralized overview of all payments. That is far from modern banking.
Consider the changes in the corporate landscape: digitalization, stricter regulations, cybersecurity, and global growth. All of these factors demand a banking setup that is integrated into the overall finance process.
So, what should a future-ready banking solution deliver?
Modern banking: the 7 success factors
A modern banking platform integrates seamlessly into your system landscape, adapts to your internal processes, and delivers measurable benefits.
Here are the 7 success factors that define modern banking solutions:
