A number of payments priorities are emerging as corporates embrace the digital transformation of payments processing:
Recent research from LexisNexis® Risk Solutions and Capgemini Invent finds that 60% of corporates rate digital transformation as a key payments priority.2 Digital transformation in corporates affects business processes and especially impacts payments operations. Rapid digital acceleration and the adoption of ISO 20022 standards worldwide are fueling expansive digital payments growth due to more standardized and efficient payments formats. There is a need to expand automation in payments operations, with companies eventually looking to go as far as end-to-end integrations with vendors.
Payments managers are currently looking towards expanding automation in the following areas: payments processing, integrating procurement, invoicing, payment approval, reconciliation and reporting. Automation across these areas allows corporates to increase the number of digital payments being made and significantly improve straight-through processing rates.
Corporates are turning to modern middleware data verification tools to automate payments processes across the customer journey as the demand for digital payments increases. This allows corporates to focus on higher-value priorities, such as payments strategy and business development, rather than payment execution. When payments managers can focus on strategy, innovation redefines payments processing. One innovation already coming to light is the idea of payments factories, a means of consolidating all payments flows from different parts of the business into the same centralized hub. New payments processing innovations will begin to leverage artificial intelligence technology and powerful data solutions to a greater extent.
Corporates focusing more on development and strategy have two options: create the technology themselves or work with third parties to build the processes. Developing payments technology in-house can be extremely expensive for a single corporate to manage alone, so they often search for business collaborators to accelerate and optimize the required investments to build these solutions. Payments managers rank cost efficiency, simplicity and customer service as the top criteria for selecting collaborators.
Organizations may open their business to many risks when they do not prioritize payment strategy and efficient payments processing. North America corporates spent $20.9 billion on failed or delayed payments in 2020, with an average of $482,000 per organization, according to the LexisNexis® Risk Solutions True Cost of Failed Payments Global Report.3
It is a common theme to incur the high costs illustrated in the study when payments operations take the back burner. The largest contributors to failed or delayed payments are inaccuracies with the bank details or the SWIFT/BICS and National Clearing codes. The human hours spent repairing the inaccurate payments compound the monetary cost, with an average of 16,800 hours spent per year addressing failed payments.4 Organizations face significant cost and operational impacts when they neglect to optimize payments processing. Utilizing automated solutions helps businesses minimize these burdens and keep pace with digital payments demands.
More accurate banking reference data is essential for organizations that set up, route and process payments. LexisNexis® Risk Solutions provides prompt access to payments validation, routing data and modern technology covering financial institutions worldwide. Our automated payments solutions streamline global payments setup, routing and processing. Leveraging automated solutions enables organizations to maximize their straight-through processing rates and significantly improve payments experiences for customers and suppliers.
LexisNexis® Bankers Almanac® Validate™ delivers this robust information in two different formats: a RESTful API, which easily integrates into workflows within a digital payments ecosystem, and a web-based portal. Bankers Almanac Validate delivers more complete data and automation for faster, more accurate domestic and cross-border payments to facilitate improved customer experience at the point of payment initiation while driving routing and payments efficiency in organizations’ back offices.
Ready to leverage the advantages of automated payment solutions? Download the LexisNexis® Bankers Almanac® Validate™ brochure today and connect with us to learn more.
1. and 2. LexisNexis® Risk Solutions Corporate Digital Payments Study, 2022, https://risk.lexisnexis.com/corporate-digital-payments)
3. and 4. LexisNexis® Risk Solutions True Cost of Failed Payments Global Report, 2021
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