It's no secret that commercial cards are big cash management drivers for large national banks. More than 70% of businesses now use commercial cards for B2B payments, and that number is expected to grow by double digits in coming years.* With that growth in use comes a growth in spending – and increased revenue opportunities for banks that offer commercial card products to their customers.
But a bank doesn't have to be a huge national concern to take advantage of the growth opportunity afforded by commercial cards. New technologies, evolving commercial card products, and multiple points of entry to the commercial card market now help to make it easier and more financially rewarding for regional banks to become commercial card issuers.
What does it take to start offering card products to your business customers? For a bank with a minimum of $1 billion in assets, the process is actually surprisingly easy. Process automation has come a long way since banks first started offering commercial cards, which is a boon to banks now looking to become card issuers with minimal start-up time and cost. Regional banks also have a few alternatives to becoming direct card issuers, including entering into a referral agreement for business and outsourcing their commercial card program to a larger bank, via an agent banking program.
With competition in the financial industry fiercer than ever, a robust commercial card program is a compelling – even critical – means of attracting and retaining business customers for regional banks.
*Source: Mercator Advisory Group
Interested in learning more about building your commercial card program? Click here to get the low-down on how to create a secure, streamlined and automated, card-based process for your customers' corporate payments.