The financial landscape is changing. Corporates are facing increased needs to achieve operational efficiency, connectivity, optimized payment centralization and control. This need is driven by the top priorities of businesses in 2015, which are:
- Financial Risk Management
- Centralizing Treasury functions
- Operational Efficiency
These priorities force businesses to redesign and optimize their payment processes. Other challenges such as greater visibility on cash, better reporting and cyber risk also play an important role in the changing payment processing landscape.
Most businesses are working on the optimization of their payments by looking at centralization and control. This optimization includes:
- Managing information and getting access to multiple corporate systems and payment formats;
- Increasing visibility, forecasting and control of payment flows;
- Automation of manual entry;
- Managing multiple banking partners, channels and platforms.
Solutions such as Payment Hubs and Payment Factories centralize all payments and collection processes across the enterprise. This way, clients create better performance and more efficient payment flows. The PowertoPay Payment Hub is a solution that centralizes the payment and collection flows for treasury and AP systems, but also the statements flows for AR. ERP systems from different legal entities exchange data with the central Payment Hub, centralizing execution of file transfers in a way that is effective and low cost. The Payment Hub then ensures the exchange with the appropriate bank using the bank required channel or SWIFT.
In short, businesses are facing an increased need to establish one single platform that helps them handle a multitude of file formats still present in the payments business. This means less complexity, less change in the organization, greater control and reduced costs and most importantly achieving higher levels of (bank) independency.