PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
No Result
View All Result

Ensuring Financial Business Continuity in an Uncertain Recovery

Bill Wardwell by Bill Wardwell
July 10, 2020
in Economic Recovery, Featured Content, Industry Opinions
0
Ensuring Financial Business Continuity in an Uncertain Recovery
4
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

In an ideal world, the economic recovery from the COVID-19 crisis we’ve all weathered for months would be V-shaped, meaning a sharp rise back to pre-pandemic activity and beyond. It appears many organizations are expecting a different letter to symbolize the recovery, when we are all said and done.

Per the Treasury Coalition Global Recovery Monitor,an estimated 44% of treasury professionals expect the recovery curve to take a W-shape, meaning we might see a recovery and another dip in economic activity before we get back to what’s considered normal. A further 22% expect a “swoosh” and another 20% think a U-shape is in our future.

Regardless of the form that eventual recovery takes, it’s clear that “normal” is not upon us just yet, and the biggest concern for every business is the direct financial impact the experience is having. For nine straight weeks, Strategic Treasurer’s initial “Global Crisis Monitor” and “Global Recovery Monitor” found that financial impact was the number one concern for businesses surveyed, which is no great surprise.

Right now, businesses are by and large feeling trepidation. They’re building their cash reserves and feeling the negative impacts on liquidity that we would expect when their customers are reluctant to spend or slow to pay. Organizations are searching for process efficiency and cost cutting opportunities across business operations to allow them to weather the moment, and accounts payable and accounts receivable are key focus areas for finance teams.

Considering the fact that 58% of professionals surveyed by Strategic Treasurer have no plan to return to the office from work from home, finance teams are finding that short-term workarounds created to keep AP and AR running in a remote environment might become longer-term strategies to enable a virtual workforce that are efficient, effective and secure.

Most challenges represent a new set of opportunities, so what are the opportunities for finance teams to emerge better, stronger?  There are three core areas businesses can focus on to help them survive the moment and thrive over the long haul.

1. Enhance accessibility

Finance teams have traditionally worked from the office, a necessity when paper invoices needed to be received, entered, approved and paper checks needed to be issued. There has been a steady shift toward digital processing of invoices and electronic payments, but that shift is accelerating quickly with finance teams working remotely.

The shift from in-office to home office accounts receivable, accounts payable and treasury effectively mandates staff having the ability to access documents and data via the cloud or their mobile devices. Without that access, those teams risk either traveling back and forth to the office or being unable to perform their core duties and keep financial operations running. Finding solutions that can provide this access, serve as an extension of any existing ERP and banking systems, and add greater visibility to cash flow and reporting is critical now, and the benefits of doing so will last well into the future.

2. Bolster security

In the Crisis Monitor, one in five businesses surveyed had not factored security into their business continuity plans. As my colleague Chris Gerda wrote in PaymentsJournal back in April, 82% of businesses were targeted by business email compromise (BEC) scams in 2019, and fraud incidents and sophistication are rising in the age of COVID-19. With AP and AR staff working from home, it’s harder to poke your head into an adjacent office or reach someone on the phone to verify that a bank account change or transaction is not fraudulent.

Better technology is necessary to fight back, preferably in the form of solutions that have an integrated approach to fraud detection and prevention, including machine learning, geolocation and multi-factor authentication. Organizations need to take the impetus of detecting fraud off staff that have enough on their plates and hand it over to solutions capable of doing so. Again, the benefits will resonate for years to come.

3. Transform into a digital-first organization

Better accessibility and better security are part of thinking digitally, but they’re not enough on their own. Taking a digital-first approach to invoices, payments and other financial documents is necessary to enable remote, from-anywhere workflows and approvals. Electronic payments like virtual card, ACH and real-time payments can strengthen buyer and supplier relationships during a time when cash flow and access to data are more important than ever.

Regardless of how you choose to tackle these priorities, the importance of tackling them shouldn’t be in question. If businesses are going to recover from COVID-19 and thrive in the future, digitizing and streamlining everything ranging from staff access to data to security to payments, matters now more than ever.

Tags: business continuityContinuityCoronavirusEconomic recessionIndustry Opinionsrecoveryrecovery curve
4
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily
    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    How PayPal Achieves High Authorization Rates

    How PayPal Achieves High Authorization Rates

    January 19, 2021
    Explaining the Bill Payment Ecosystem

    Explaining the Bill Payment Ecosystem

    January 15, 2021
    QSRs Can Address Loyalty Program Shortcomings by Serving Up Better Offers

    QSRs Can Address Loyalty Program Shortcomings by Serving Up Better Offers

    January 14, 2021
    How Merchants Can Prevent Account Takeovers—and Why Failing to Do So Amplifies Operational Expenses

    How Merchants Can Prevent Account Takeovers—and Why Failing to Do So Amplifies Operational Expenses

    January 13, 2021
    How Banks Can Leverage Tech Partnerships to Enable Innovation for Commercial Clients

    How Banks Can Leverage Tech Partnerships to Enable Innovation for Commercial Clients

    January 11, 2021
    The Future of Phixius (and Interoperable Financial Services)

    The Future of Phixius (and Interoperable Financial Services)

    January 8, 2021
    Fraudulent Activity is the New Virus, and Here Are Some Possible Solutions

    Fraudulent Activity is the New Virus, and Here Are Some Possible Solutions

    January 7, 2021
    The Future for Restaurants is Touchless

    The Future for Restaurants is Touchless

    January 6, 2021

    Connect With Us

    • Advertise With Us
    • About Us
    • Terms of Use
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • COVID-19
    • News
    • Events

    © 2021 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result
    ×

    Login

    Forgotten Password?

    Lost your password?
    | Back to Login

      Subscribe!

      Thank you for visiting PaymentsJournal! Please subscribe to our newsletter to receive consumer data insights and daily analysis from Mercator analysts and industry experts.

      ×

      WEBINAR:
      How Digital Acceleration Will Affect Payment Industry

      Please join us for this panel discussion on addressing the challenges to pave the way to payments innovation and profitability and gain insights on the key trends and challenges impacting the payments landscape in North America.

      REGISTER