27/04/2022

How payment digitalization impacts finance teams

Digitalising payment systems has become a priority for many businesses, regardless of their size or the industry they operate in. Payment digitalisation answers customers’ demands of speed and convenience, enabling them to pay however they want to pay through the click of a button. For industries such as insurance, it also allows customers to be paid however they want to be paid instantly. This is a desirable proposition for most customers worldwide.

But payment digitalisation goes way beyond simply answering customer needs. It provokes a transformative shift in the way businesses operate, and in a few key business areas in particular. Finance is one of the areas that can reap incredible benefits from an optimised payment system. In this article, we discuss how payment digitalisation affects finance departments in organisations.

Improve working capital efficiency

According to a PYMNTS study, 84% of CFOs say payment digitalisation has improved their working capital. This has become a key priority for Finance teams, as they focus on entering their digital transformation journeys whilst reducing their dependency on external capital. Ensuring an efficient working capital management system enables companies to have higher flexibility and more control over their funds. It also improves the utilisation of working capital.

With instant payments, organisations are able to draw funds immediately into their accounts. Not only do companies get paid faster, but they also have better control of disbursements. Being able to more easily manage cash flow is key to maintaining stability and it empowers the company to make better business plans.

Improve visibility and transparency

When payments are processed in real-time, payment data is also delivered in real-time. This enables companies to have a much clearer overview of their payment operations and to easily access any data. Enterprises can also use unified reporting tools like Imburse’s to ensure that all data is gathered into one single platform. This provides greater visibility and makes it easier for Finance teams not only to control cash flow but also to make more informed decisions.

virtual terminal

Increase operational efficiency

Payment digitalisation isn’t just about being able to get paid and to pay out in various payment methods. It involves a significant transformation of operations and the adoption of a series of capabilities, including, as previously mentioned, unified reporting, but also mandate management, KYC authentication processes, tokenisation, and analytics. These capabilities, along with easy access to real-time data, enable enterprises to improve efficiency and productivity in teams. Automating operations also means that are fewer risks of errors and helps groups to comply with standard regulations.

Decrease accounting errors

Eliminating or reducing dependency on manual data entry by automating processes can increase accuracy in accounting. Equally, shifting payment data from physical paper to the cloud makes losing or mishandling data less likely to happen. CFOs and their finance teams can easily access all payment information and automate most of their processes, from reporting to mandate management.

electronic invoices are documents issued, managed and stored online.

Reduce payment fraud  

Lastly, payment digitalisation can help teams to prevent and more easily spot payment fraud. The easier access to data enables teams to spot suspicious actions faster and solve issues promptly. Alongside that, there is a wide range of payment technologies that companies can integrate in order to prevent or reduce payment fraud, including tokenisation, encryption, and two-factor authentication. With the rise of cybercrimes, ensuring payment security is vital for any company that handles payments or payment data.

About Imburse

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

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