The Changing Nature of Payments
27 July, 2021
Global corporate payments technology is changing at a higher speed than ever. However, this change is accompanied by challenges. The rapidly changing nature of payments raises problems for many finance teams, ranging from insufficient controls, custom banking formats, infrastructure costs, and delayed projects. However, the most crucial challenge remains fraud through simple human mistakes and vulnerability of technical processes – and, worst-case scenario, internal collusion.
According to a survey by WEX Inc, 52% of organizations admit to being victims of payment fraud. This risk becomes significantly more eminent when organizations rely on outdated systems and processes, which cannot guarantee compliance as they rely on human control. A Payment Factory can be the perfect solution to enhance your company’s payment processing capabilities while ensuring full compliance with statutes – helping to prevent costly mistakes.
A payment factory is a structure that performs four main functions:
- It provides standardized workflows for payment creation, independent of which source within the organization.
- It layers workflows that support payment controls, such as real-time fraud detection and sanctions list screening.
- A payment factory enables flexible payments through bank channels.
- Finally, payments are automatically translated into the format required by each bank.
Evidently, there are many benefits a payment factory can provide to finance teams. It allows companies to route all corporate payments through one centralized system, making it easier to fight fraud, conduct audits, demonstrate proper controls, avoid the risk of duplicate payments, and apply sanctions checks.
Standardization is another crucial element supported by payment factory solutions. Standardization is key to eliminating unauthorized payments through a set of controls that apply without exception. The company’s payment policies should be digitized and enforced by the payment hub software to ensure that these controls are consistently used. By consolidating all payment activity, payment hubs can provide visibility and clarity to finance teams. Among the many benefits, payment hubs reduce the cost of managing payments. By managing payments centrally, some IT costs are eliminated. In addition, only one payment system is needed, further reducing costs.
With the proper setup, it is possible to automate the entire process with a payment integration solution that seamlessly synchronizes incoming transactions with accounting, CRM, and other software platforms currently in use. In summary, payment factories improve controls, keep pace with the ever-changing environment, eliminate fraud risks, and ultimately enable a successful ERP cloud transformation that eliminates any threat to internal schedules or goals.
The Financial Navigator lets you improve your payment processes with its Payment Factory. The Payment Factory enables you to standardize and centralize your payment processes, manage transaction limits and signature schemes in an intuitive interface. All payment processes are screened based on these parameters to prevent internal or external risk of fraudulent activity. The Payment Factory allows you to create, schedule, sign, and execute payments centrally for any connected bank, independent of geography, payment type, amount or currency. Centralized payment processes create transparency for your company and enhance your decision-relevant information regarding asset allocation.
Our Payment Factory feature allows you to:
- Manage payments standardized and with transparency
- Have a full audit trail and multi-signature for effective fraud prevention
- Execute payments centrally – independent of banks, geographies, or currencies