In a recent panel hosted by PYMNTS, leaders from Financial Institutions and Fintechs, including Mastercard, Huntington National Banks, and Bank of the West, agree the push towards AP and AR automation is stronger than ever. This year, more and more companies are seeing automation as an absolute imperative. “54 percent of larger companies and 65 percent of smaller ones see manual payments as time-consuming and error prone. The friction points have become only more friction-filled, with back-office functions becoming more distributed as so many employees are working from home.”
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The panel discussion had two important points related to the uptick of AP and AR automation:
The B2B Industry
“We live in a world, after all, where B2B payments can be complex, and depending on the vendors and verticals, they can range from small-dollar, high-volume transactions (like pens) to millions of dollars paid for steel measured in tons.” Many B2B companies are looking for ways to drive operational efficiency by eliminating manual, repetitive tasks. The efficiency and savings created through the automation of payables processes and the move to digitize payments will enhance your bottom line in even the most adverse global circumstances. But the complexity of B2B transactions is also greatly enhanced when automation is paired with increased visibility through real time analytics and user-friendly dashboards. A true automation partner should be able to streamline your AP and AR workflow while also providing enhanced visibility into your finances.
“Consumer behavior (where so much is done online and even contactless) winds up informing corporate behavior — and switching toward digital payments (and automation) is an inexorable trend. That’s especially true as we simply cannot get to the (literal) office to get those checks processed and out the door or to the bank.” Consumer behavior has shifted in large part because younger generations are more tech savvy and prefer online banking and online payments. As Gen Y, Gen Z, and Millennials begin to make up a larger percentage of the workforce, they are pushing for AP and AR automation within their businesses. The deployment of automation technologies is getting easier because younger generations feel comfortable with the changes. The transition to digital workflow is not as intimidating to those generations who already see the benefits in their day to day lives.
Given the global push towards AP and AR automation, make sure your company selects the right automation partner to lower operating costs, increase your efficiency, and enhance visibility into your financial workflow. Download our free Buyer’s Guide to help you choose your P2P automation technology or read the PYMNTS article to hear more from the panel.