Senior analyst Patricia Hines from research and consulting firm Celent has written a report on how a second wave of digital technology is expected and corporate treasurers must adapt their strategy in order to satisfy their customers.
Hines highlights that there are three areas where digitisation of business can improve customer satisfaction and increase revenue simultaneously, which she names as trade and supply chain finance, payables and receivables and corporate-to-bank connectivity.
“All three product lines already use extensive automation and digitisation, but they are using “old digital”,” Hines says. She elaborates on this by saying that many initiatives that have been used in the past have “merely electronified a manual process rather than used technology to transform the process,” as quoted on Banking Technology.
Banking Technology also said that Hines believes that corporate clients only have two basic requests: to know how much money they have and where it is. Therefore, in regards to connections between the corporate and the bank, the simplification of interactions would provide timely and useable information in the right format.
Alongside this, those banks who have implemented these newer technologies can move forward by using further automation, despite being on the opposite side of the financial supply chain, as Hines mentions. In summary, the report advises corporate treasurers to work with technology vendors in order to automate payables and receivables and take a holistic approach when combatting these issues.