Machine learning (ML) and artificial intelligence (AI) will have a critical role in realigning treasury operations and streamlining accounts payable and accounts receivable.
Intelligence-driven automation is being deployed to reduce manual processes, improve payment accuracy, optimize data exchange and consolidate invoicing and receivables reconciliation. It’s helping create significant operational efficiencies and organizational value.
Alongside automation, data and analytics will continue to be a big part of how treasury departments will define their AP and AR functions in the coming years. With greater connectivity and more information being shared about customers and transactions, there will be more potential to generate valuable business intelligence. Organizations will gain access to powerful insights to advise with, improve services, reduce costs and pursue new opportunities.
Relatedly, payment messaging will be an essential area to keep track of as new digital payments options are becoming increasingly sophisticated and data-intensive. Standardized messaging between financial institutions, specifically ISO 20022, is a growing global initiative and corporates need to be ready to migrate their systems to be compliant.
The bottom line is that amidst this rapid pace of innovation, treasurers will be at a disadvantage if they aren’t staying abreast with the latest developments and readying their systems for what’s next.
With innovation happening at full speed, treasurers looking to bolster the efficiency and effectiveness of their payables and receivables will need to zero in on strategic decision-making and organizational value. Looking at future growth and being ready to take advantage of tomorrow’s opportunities, our high-level recommendations are to keep a close watch on the technology in this space and ensure your internal capabilities are primed and ready for what’s next.
There are several key takeaways from the trend to automate B2B payments.
Reduce paper. The tools and market demand are there and there’s never been more evidence for how easy it is to make the digital shift — or how important it is for improving the bottom line.
Keep infrastructure up to date. If you want to leverage the functionality and power of new technologies, making major upgrades late in the game can be a huge challenge.
Explore new payment types and leverage online solutions. Do the research, but don’t hesitate to try something new. End-to-end platforms and services are a convenient, low-risk entry point to the world of faster payments and better customer experiences.
Embrace automation. Leverage AI and ML to streamline processes, consolidate data and eliminate manual tasks. The operational efficiencies, cost savings and strategic value will have a powerful impact on the bottom line.
Work proactively with your partners. It’s critical to pay close attention to what your partners are doing and to make sure your customers’ technology needs are being met.
