New digital banking tools for the busy business owner

Business owners in the greater Chicago area are increasingly embracing digital banking tools for their professional as well as personal financial needs.

A recent Bank of America survey of small business owners revealed that 46 percent use digital banking tools in their day-to-day operations - the most-used tool. Not surprisingly, millennials were most receptive to new technology, with nine out of ten using digital tools of all kinds at least once a day. What new innovations in the digital space can business owners expect to see in 2018?

Here are some key innovations that are in place or coming soon to the Greater Chicago area: Getting loans from mobile devices: Tech-savvy banks are enabling customers to carry out a variety of financial transactions on mobile and digital devices. For example, small business clients at Bank of America can get a term loan or line of credit on all digital channels, including a mobile app. The offering includes a product tool to find the right loan or credit product, a calculator to determine loan payments and the ability to immediately contact a bank professional with questions.

Coming soon are new capabilities to complete the auto financing and mortgage loan process on a mobile app. For instance, Bank of America is rolling out an auto finance app, which enables customers to shop at car dealers and complete the entire process online. In addition, customers will soon be able to complete a mortgage loan on mobile. Thanks to pre-populated forms and other timesavers, the entire application process will take an average of 15 minutes.

Increased use of new payments options: Banks are responding to rapidly changing consumer preferences by offering small businesses many more options for accepting payments. While the percent of mobile wallet transactions from Bank of America customers is still relatively small compared to traditional options, transactions doubled over the past year among the 50 million who use our credit and debit cards. However, not all small businesses are keeping up with their customers. A total of 38 percent of small businesses have not changed the types of payments they accept in the past five years, according to a recent Bank of America survey. Only 28 percent are accepting customer payments made via digital wallets. And just 9 percent have their own branded app that accepts payments or allows money to be loaded into a prepaid account.

No more passwords: Banks on the forward edge of technology are moving toward biometrics and away from online IDs and passwords. The goal is to make transactions faster, safer and easier. At Bank of America, we are planning to introduce fingerprint scanning on certain computers and testing iris-scanning technology and the facial-recognition technology of Apple's iPhone X. Biometrics are not only more convenient, they are more secure in a time of increasing cybersecurity threats.

Flexible ways to do banking transactions: The brick-and-mortar branch is morphing into a more flexible array of options designed to fit consumers' varying needs and preferences.

For example, Bank of America will soon introduce Erica, a virtual assistant that allows consumers to conduct transactions 24/7 by using their voice. Customers can pay their bills, make P2P payments and get account balances.

Not everybody is comfortable with new technology, so Bank of America is revamping branches in the Chicago area and throughout the nation to provide a high-tech and high-touch approach. For those requiring more in-depth assistance, the new and renovated branches will provide access to small business professionals, financial advisers and loan officers. In addition, the branches will feature digital ambassadors and a dedicated learning space with interactive digital tools.

At the end of the day, the new banking technology is designed to make transactions safer, faster and easier. The pace of technological change will undoubtedly continue to accelerate, bringing even more options for consumers in coming years.

• Sandy Pierce is SVP, Consumer Banking Region Executive, Bank of America.