COVID-19 has disrupted lives and markets around the world over the past several months. Surviving the challenges ahead as we enter a new era will not be easy for many business owners—but it can be done.
New Research shows that over 60% of companies have business continuity plans in place, while 85% said that automation technology will be helpful for their business continuity needs. It has become even more clear that businesses of all sizes must use technology to automate their day-to-day operations. And what’s more critical is streamlining financial operations. This includes driving more efficient ways of facilitating cross-border payments—increasing overall business efficiency, consistency, and risk management compared to manual payment processes.
So why are APIs and open banking beneficial in times of COVID-19?
Currently, 2.4 billion consumers use digital banking services, according to a recent study published by Juniper research. This number is expected to reach 3.6 billion by 2024, which would be a significant 54% increase from the current market scenario. The need for automation, especially while making cross-border and high volume payments, has increased considerably for businesses who are now struggling to offer a host of services to their customers. Working remotely has been a growing trend for gig economy and tech-driven companies for many years now. Due to the ongoing pandemic, many businesses have been hit with no other option but to manage finances and transactions online and remotely.
Here’s where APIs and open banking come into play. Transparent foreign exchange rates, risk management tools, and easy and secure transactions offered by this technology add certainty to planning, reporting, and overall analysis for businesses. APIs and open banking also help businesses offer a value proposition to their clients that is unique and competitive in today’s business landscape. One must remember that there is more to offer to clients than just processing transactions. Identifying the strength of your business value proposition compared to your competition should be top of mind–now more than ever.
How is automation of financial operations going to help businesses?
There is no doubt that technology adds efficiency and effectiveness to businesses. Automating manual financial processes can add operational efficiency and help boost your team’s productivity—and as a result, your revenues. Here are top 3 reasons why businesses must streamline their financial operations, especially during this challenging time:
- Customized reporting and automated reconciliation can simplify your bookkeeping, freeing you and your team for more high-value client work.
- Global payments solution partners can offer encryption and security techniques to ensure all internal and online systems are impenetrable, thereby reducing risk of sensitive information being leaked.
- Offering overseas customers a facility for paying in their local currency can open opportunities for your business and allow entry to new markets.
Businesses today, especially in industries such as travel, real-estate, education, insurance, and others , both domestic and international, are aiming to become a “one-stop-shop” partner for their customers. Therefore, it is vital for businesses to choose a solution that fits seamlessly into their existing business model and adds merit to the existing value proposition. A potential client or customer may be looking for help in one specific area, but with a diverse toolkit, the overall value proposition of a particular business becomes much larger than what the partner initially imagined, creating a better end result than a simple one-sided solution.
What is the ‘new normal’ for businesses streamlining their financial operations?
Businesses are already seeking solutions that can help them maximize their wealth creation opportunities. As the veil starts to lift, the new ‘normal’ for businesses would be to analyze any existing cost disadvantage which impacts their bottom line and can lead to potential security risks. More and more business owners will now prioritize the ‘Financial Health’ of the organization and seek to capture pockets of profitable growth. Digital transformation–especially in financial operations–will be the core as businesses gear up to re-invest in recovery.
Challenging times have often proven to be the greatest growth opportunity and time for innovation. In a globalized economy, where borders dissolve and even a micro-business can build an international footprint, a global payments offering is the magical key. With competition from digital-first challengers, businesses must enhance their product offerings to flourish in today’s growing marketplace. Automating financial operations with advanced technology solution can help to not just differentiate your business, but also capture market share in today’s economy.