The Changing Face of Corporate Payments

Changing Face of Corporate Payments

When it comes to digital offerings, the scale of evolution of retail offerings has far superseded that of corporate ones. This has led to increasing levels of dissatisfaction by corporate customers who are also users of retail banking services and hence it has become imperative for corporate banking/payments solutions to evolve.

Some of the reasons that have fueled change in the space include:

  1. Demand for real-time information 24×7
  2. Regulatory changes fueled by API/Open Banking initiatives
  3. Fintech players disrupting the position of incumbents
  4. Fragmented relationships between products, users, and staff
  5. Lack of visibility for payments flow

All these factors are leading to what corporate banking users precisely need – simplified processes and payments.

Explained below are the 4 key aspects that will change with open banking-driven corporate payment solutions:

1. Automated cash management and forecasting

With digital solutions offering customizable workflows, simplified data capture, in-depth reporting, and embedded AI and ML modules, an automated system reduces chances of risk and error by a huge margin thereby improving process efficiency and accurate forecasting.

2. Automated collections and reconciliation

Modern digital solutions leverage a host of features as described in the previous point to process efficiency. When it comes to collections and reconciliation, these solutions are designed to aggregate data from disparate systems, focus on priority-based scheduling, and provide seamless integration between modern and legacy banking systems. All these aspects help in identifying and removing bottlenecks that save time, improve accuracy, detect fraud at early stages and deliver high levels of transparency.

3. Cross-banking frameworks

As reconciliation systems get automated, it is only natural that digital technologies simplify and speed up cross-border payments to help corporate banks internationalize their value chains. It must also be noted that SMEs today, demand easier access to international payments for business success.
Adoption of technologies such as blockchain, AI, cloud etc. facilitates sharing of information related to accounts/transactions which coupled with analytics result in improved liquidity, transparency, cost savings and streamlining of cross-border trade.

4. Digitization of cheque collection

Recent developments in machine vision technologies such as OCR (optical character recognition) have helped a lot of banks in the digital processing of cheques. There is also increased adoption in the use of AI and ML models to build smart screens that simplify and reduce the number of fields captured to process a transaction. All of these imply that the adoption of these
technologies would help banks reduce costs and time involved in the physical movement of cheques and reduce clearing times by large margins.

Conclusion

As digital becomes more and more prevalent, we will see newer aspects that will play a critical role in the evolution of corporate payments. However, it must always be remembered that the customer must be at the heart of any solution that is designed because how else can one maintain relevance in the age of the customer?

At i-exceed, our corporate payments solutions help banks move billions of dollars through their value streams swiftly. To know more about how we can help you in digitizing your corporate offerings, get in touch with us at marketing@www.i-exceed.com. We would love to be a part of your digital journey.

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