>>> >> > >>

Is the banking industry ready for the digital transformation?

Ten years after the 2008 global financial crisis, the profit margins of banks in advanced economies remain at historically low levels. The reason is simple: costs have been growing faster than revenues. Banks’ average return on equity has fallen to unsustainably low levels, especially in Europe.

The increasing focus on governance, risk and compliance has also resulted in declining profitability. While consumer-facing tech like real-time payments and mobile banking hold great promise for banks, updates to behind-the-scenes infrastructure could be the key to cost savings and competitive advantage. Banks urgently need to act if they want to increase their profit margins. Because boosting revenue in the current environment will be difficult, banks must slash their costs.

Ways for banks to improve profitability

So what do banks do to counter the impact of falling net interest margins and arrest the slide in profitability? In theory, there are two ways in which banks can improve profitability: increasing revenue and decreasing expenses

  • Increasing revenue

Because any increase in interest rates in the current global business environment is very unlikely in the face of competition, regulations, customer expectations, etc., banks are now exploring other options to generate revenues, such as increasing customer base, diverse product offerings for enhanced fee-based incomes and developed ecosystems in which coupons, offers, merchants etc. drive revenues.

However, all these measures entail significant marketing expenditure, which can further drive up costs. As a result, with low loan demands and large security portfolios, profitability is unlikely to be driven from outside the bank. That change has to come from within.

  • Decreasing expenses

Change from within to improve profitability essentially means improved operational efficiency and productivity. With the banking industry facing low margins and hefty compliance investments, banks need to remain vigilant and keep costs well under control. While there are several potential strategies to manage costs, digitalization definitely is one of them.

Decreased expenses by digitalization and automated T&E Management

The trends of rising costs and constrained revenue growth are unlikely to change, so banks must take bold steps. And even though tech advances, such as artificial intelligence (AI) and blockchain, will clearly play a role in the evolution of banking, modernizing the infrastructure backbone is arguably the most important step banks will need to take.

In order to remain competitive, banks will have to update their technology on the back end in order to deliver a seamless experience on the front end. One of the main ways to achieve this, is for banks to go digital. So when banks make the investment to automate their finance and accounting functions for example, they can and will realize enormous benefits that improve efficiency, reduce operating costs and mitigate risk. Digital technologies, such as automated T&E management software, can make a major impact, worth all the investment of your time and money.

Saving money with rydoo

Almost every industry, and the banking industry in particular, has struggled to keep pace with our evolving digital world. However, where some financial institutions are failing, others are making tremendous strides forward. Especially those, that have embraced digital transformation with open arms. Key is the fact that their leadership is not afraid to shake up the status quo while keeping a keen eye on future tech and trends. So, even though entire industries may be facing disruption on many fronts, these banks and institutions have found a way to save tremendous costs, by going digital and by outsourcing their key financial roles to become and stay more competitive in our fast-paced business environment. Finance and accounting functions that are digital and are successfully being outsourced nowadays, vary from bookkeeping, payroll processing, accounts payable & receivable, to financial administration and travel & expense management.

Of course it is of the utmost importance, that your business processes are handled efficiently and with utmost care and security by your provider. At rydoo, we take pride in the fact that we do just that: taking care of your business as if it were ours. As a competent and experienced automated T&E software company, not only do we help you save costs and streamline the way processes are being implemented, we also help you boost internal productivity and enhance your competitiveness. Other advantages that working with rydoo offers include:

  • Reduction of operational cost;
  • Time savings;
  • No more errors and delays;
  • Staffing flexibility;
  • Raised efficiency;
  • Sound advice from experts;
  • Compliance with relevant rules & regulation;
  • Increased employee satisfaction;
  • No more (frustrating) paper reporting and spread sheets.

According to our customers, Rydoo is a highly reliable T&E management software provider and business partner in this digital era. With our integrated, mobile T&E solution, we strive to always deliver the “cost-plus” value proposition and help you capture your ‘value beyond’.



Employee mobility - The 7 start-ups to watch after Vivatech

Vivatech 2019 was a blast. With over 120.000 attendees, 13.000 start-ups and 2.500 journalists present, the tech meet-up of the year in France is starting to take the proportions of a sizeable rock festival. Selecting some of the most promising start-ups in the realm of "employee mobility" was a tough mission, but we managed. Here's the final list of our nominees.


Why VAT recovery is much more important than you think

Lots of companies still overlook the potential of foreign VAT recovery for their expenses — that’s the VAT you pay over business expenses made abroad, like hotel stays and conference tickets. Globally, $20 billion is lost in unclaimed VAT every year — money that would have been rightfully theirs, if it wasn’t for the fact they didn’t know about it or simply think it’s too much work.


Per Diem for Dummies - Spain

More and more employees need to travel for work reasons. As such, companies have to cover the expenses of these trips, on many occasions through the Per Diem allowances, but what are exactly the Per diems? Per Diems are fixed amounts of money that an employee can spend during a business trip. These rates change every year depending on the country or the type of travel.


Employee MIleage Reimbursement - What works best for your organization

Car allowance program, cents per mille program or Fixed and Variable rate. Employee mileage reimbursement can be tricky, find out the best reimbursement program for your business with our latest infographic. 


500K+ professionals across 60 countries are using Rydoo.