Financial professionals can cut costs by centralising payments

Financial professionals can cut costs by centralising payments

According to a recent Reval survey, 73% of respondents said that they have implemented centralised control in their payment management systems.

More than 200 financial professionals from companies in North America, the EMEA and APAC regions were asked about how they manage their payments in the first quarter of 2015. The results also revealed that 70% of those surveyed were planning to centralise their payments even further.

Günther Peer, vice president at Reval, global provider of a scalable cloud platform for treasury and risk management, says that adopting newer cash management technologies is the way forward and is more secure. “Over the past years, many treasuries have moved to central payment structures to reduce idle cash and prevent fraud. While laggards are still struggling with cash visibility, pioneers are already implementing more sophisticated concepts like payment factories or in-house banks. That’s where the big savings are,” Peer says.

This concept of saving money is highlighted in the survey, as when asked about cutting transaction costs and bank fees by further centralising payment management, 70% said yes. Alongside this, 42% said that the number of bank accounts will decrease in 2015 and 27% expect the number of bank partners to decrease, which supports Peer’s statement that financial professionals favour technology.

Treasurers are looking for strategic improvements to their department and from those who participated in the survey, 66% said that their priority was to optimise existing payments processes. This is usually the first step taken when building a payment factory or shared service centre, according to Reval.

56% of respondents plan to invest in new technology within the next 12 months in order to improve payment IT infrastructure, increase visibility and efficiency.

Reval states that “technology is seen as an enabler for change in treasury.”

307 views

Related reading

Bitcoin regulation to be discussed with Bank of Russia
fintech podcast
nordea fintech accelerator
fintech