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Increasing loyalty in receivables financing through digital transformation
Increasing loyalty in receivables financing through digital transformation
25 September 2023

Newest implementation experience in the CEE region - Case study

In today's era of internet and online connectivity, the significance of going digital in financial services is obvious. By adapting to the current trends, businesses can successfully create higher-value products, which in turn helps them gain and maintain client’s devotion. Based on the behaviours of business customers in some of Europe's largest banks, we can see that the mindset is changing. Entrepreneurs no longer wish to fill out paper applications or visit bank branches to activate a service. Just as they are modern in their homes and daily lives, they want to be equally modern in managing their businesses. 

Embracing digital technology is crucial today in the field of financing in the CEE market as it significantly affects customer loyalty. 

Receivables financing services such as factoring and supply chain finance are gaining popularity among European entrepreneurs for which a company's liquidity is essential. Simultaneously, this service provides a perfect example of how the needs and expectations of business owners have evolved in relation to the digitization of processes in banks and financial institutions. 

According to the FCI Annual Review, factoring volumes continued to rise in the CEE & SEE region, but the Middle East saw a different pattern of growth. In 2021, the total transaction volume in the CEE & SEE region increased by 18% and continued to rise even more significantly in 2022, reaching a remarkable 25.5% increaseHowever, while turnover in other bordering regions is not so spectacular and is close to the results of the previous year, in the Central and Eastern European region countries such as Romania, Bulgaria, the Czech Republic, Slovakia and Greece recorded an increase of more than 30% compared to the previous year.

This makes CEE one of the fastest-growing regions in terms of factoring turnover in 2023, prompting the need for rapid digitalization development. 

So, what makes digital factoring so “trendy”? First and foremost, it speeds up the information exchange and improves transparency and security in financial transactions. Secondly, it offers a straightforward and intuitive user experience, which is a significant advantage not only for bank employees but for the customers as well. There are many more advantages of digital factoring, but let’s take a deeper look at this second one. 

Modern top-performing banks thrive by putting their clients first, making "customer obsession" the driving force behind their success. Thus User Interface and User Experience design are pivotal elements in the development and success of factoring platforms. When factoring platforms adopt a customer-centric UI/UX approach, it ensures that the requirements of both financiers and businesses are met, creating a win-win situation.

Adapting to the requirements of the new generation of entrepreneurs is propelling business banking to the next level.

A compelling illustration of this can be found in the implementation of the Comarch Factoring Platform for one of the biggest banks in Central & Eastern Europe. The main objective was to improve the factoring service software by focusing on the user experience. The vision was to develop a user-friendly desktop interface that simplified navigation and transaction understanding. 

Comarch, known for its digital innovations, introduced a factoring solution designed to help businesses improve cash flow and simplify financial tasks. This was achieved through a user-friendly interface, instant insights, and efficient operations. The results were remarkable: User satisfaction increased from 42% to an impressive 92% after they introduced Comarch's factoring solution, as shown by the bank’s NPS survey. 

User-friendly design and modern technology can significantly enhance financial efficiency and customer loyalty.

As the financial industry continues to evolve, it's crucial that not only factoring solutions but also every application and interaction point where modern banking meets the needs of business clients align with customer expectations. Achieving this necessitates exceptional UI/UX design leading innovation and customer service, thereby setting new standards of excellence in the field. 

This article was written by Iuliia Toporova, Business Development Manager at Comarch Factoring for the CEE region. 

Discover more

  • Read more about the latest Comarch Factoring Front Office implementation.
  • Read the FCI Annual Review by clicking here.
  • Meet the Comarch team at the 55th Annual Meeting in Marrakech on 29 October - 2 November. Find out more about this event by clicking here.