Issue #25 - Are Fintechs solving corporate problems better than banks?
As mentioned last week, fintech investment has completely exploded and in our research, we found what is likely a serious driver of that investment.
Strategic Treasurer just released its 2021 B2B Payments Survey of 300 corporate and bank executives that reported some interesting shifts in their payment improvement priorities.
A key insight we noticed is that banks and corporations are realizing what fintechs have known for years...that seamless integration between systems via APIs can address the root causes they’ve been trying to patch with AI and other half-measures.
While many payable, receivable, and payments processes have been digitized, those software systems still don’t communicate seamlessly or directly. So preparing, sending, receiving and reconciling payments still requires manual intervention leading to high processing costs, lost discounts and the largest source of fraud, vendor impersonation.
In the coming few issues, we’ll explore fintechs focused on:
Eliminating A/P processes by using spend management cards
A/P priority shifts from fraud prevention to automation
A/R challenges stem from timely payments and remittance clarity
Banks concerns with payment security are escalated
Corporate requests for B2C payments automation to manage returns and reconciliations
APIs and mobile are the banks top priorities over AI/ML.
If you have thoughts or questions to share on this series, please leave a comment.
These musings on the developments in data-rich payments are assembled by the team at 20022 Labs. See more issues and subscribe to get updates in your inbox.