The following was adapted from a video segment produced by Galileo in cooperation with PYMNTS.
The digitization and personalization of financial solutions products has grown by leaps and bounds in the consumer sector, and the same trend will start to penetrate the B2B world, according to Archie Puri, Galileo Chief Product Officer.
“What has really brought this front and center for consumers is solving key friction points, whether it’s earning, spending, paying, saving, borrowing, protecting or investing. This evolution is going to continue onto the B2B side,” Puri said in a recent interview with PYMNTS.
However, personalization in the B2B sector will be far more complex than the consumer side, given the variety and nuances of the average company’s financial services needs. “We’ve given businesses tools for some things, but not for others,” Puri said. “How can we build this for businesses with all of the same principles and jobs to be done?”
This is a clear market gap waiting to be filled, given the recent acceleration of growth in the B2B payments space driven by the pandemic and other factors. “It’s the perfect alignment of the stars,” said Puri. “Tech investment has grown exponentially, we have seen below the glass innovation, and then a catalyst event. When you combine that catalyst event with accelerated digitization, the time is now for businesses.”
Furthermore, now that millennials and Gen Zers are in decision making roles in the business world, adoption of these new B2B financial services technologies are that much more likely since Gens Y and Z are used to these solutions from their experience on the consumer side.
But while there is a clear demand in the B2B space, there is some catch-up that needs to happen in a few key areas. “We call it the CORR principle,” said Puri. “Converting customers, streamlining operations, reducing risk, and growth revenue. So, while we’ve given businesses tools to grow revenue and convert customers, we haven’t given them the tools to operate more efficiently and reduce their risk.”
For example, businesses are now dealing with rising labor costs, multiple strategic partners, and other complexities, so they are looking for cohesive finance solutions to bridge all these moving parts. Puri explained further, “Businesses want liquidity and connectivity.” Additionally, businesses can use embedded finance solutions as a competitive advantage. “Businesses are getting access to capital and liquidity far sooner,” noted Puri.
Are there pros and cons that come with personalization in the B2B world, like that of the consumer sector? Puri sees it as all positive. “Am I able to get the right financial products for my business at the right stage of my journey? What kind of real time data can I give my lenders about my growth so that they are able to tailor the right products for me? The more these businesses evolve and succeed, the better it is for the entire ecosystem.”
Covid has permanently changed the B2B payments space. “Invoice reconciliation, supplier portals, liquidity, underwriting, better management of working capital, and payment choice are still trends,” Puri said. “But now connectivity and mobility are going to be a very big part moving forward.”
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