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Delivering value and growth for commercial card issuers through technology



Analytics are essential to every business but many are missing out on the insights that additional technology can bring.

Banks already recognise that offering commercial cards to their clients is a valuable service. By making the payment process easier and offering added value such as improvements to working capital, CFOs can see the clear benefits. For banks, it means a larger share of expenditure flowing through their service rather than via invoicing and as a result, increased revenues.

There is more potential in commercial card schemes than simple end user convenience, however. Provider banks should be aware that by enhancing the technology used to support these schemes, both from the end-user and back-end perspectives, they can further increase revenues.

Brand trust

Transparency is a value that is highly cherished yet rare in the commercial finance world. CFOs are faced with a seemingly endless stream of reporting from different sources that is time-consuming and sometimes contradictory.

Providers that are able to clearly dashboard spending so CFOs can see at-a-glance where spend is happening, identify trends and dial up or down approval controls deliver transparency and trust where it is most needed.

Payments automation and the ability to capture all spend types, not just card-based, makes financial tracking easier and more efficient, finding sources of non-compliant spend (leakage) and giving financial directors the ability to act quickly.

The use of technology in the business world is also influenced by trends in the consumer sector. User experience is just as important in the B2B environment. Executives will be influenced by their experience of technologically advanced personal banking. Commercial providers who can match the innovations of consumer brands will be seen as more advanced and user-friendly than their competitors.

Customer analytics

There is no business operating today that isn’t dependant on customer analytics to some extent. It is surprising then that by not enhancing the technology underpinning their commercial card offerings, banks are missing out on the insight this could deliver.

Reinforcing their offering with technology can give banks visibility of their customers’ Spend Per Account (SPA) and Average Transaction Values (ATV) for example. This helps banks understand where greater marketing effort is required or if the products customers are currently using are actually fit for purpose.

The data these systems generate is also responsible for improving banks’ profitability. By being able to assess and segment the customer portfolio, marketers can prioritise products and manage incentives to keep growing their existing customer base and share of budget.

Technology in and of itself is not a sales point for any client or commercial card provider. However, the associated benefits from delivering convenience, analytics, speed and efficiency all combine to improve client retention and their overall share of wallet.

Great experiences are as important in the B2B environment as they are in B2C sectors. If a product is easy to use and provides added value, customers are far less tempted by change. Card owners see their costs of client acquisition fall and lifetime value increase. Payments technology has the ability to deliver strong revenue growth for issuers, even within the context of budgetary constraints.

In our report Powering up the value of commercial cards for your bank and your clients, we access the 10 major data points important to both issuers and their clients to discover where technology can have a positive impact on customer relationships and performance.


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Full details are available on the Investor Relations page on the Hogg Robinson Group website.
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