Neither the pandemic nor the economic cooling is stopping the progress of cross-border trade, but companies doing business internationally know that their payment technology needs attention.
Needing to simplify and make B2B payments, cash management and invoice reconciliation more manageable, midsize and large enterprises continue to look for ways to streamline the movement of money and data, but the research reveals that less than a third believe they are making progress.
For The Innovation Gap: Meeting The Challenge Of Payments Modernization, a collaboration between PYMNTS and FIS, we interviewed more than 300 leaders of financial institutions (FIs) with assets over $500 million to determine what is necessary to master cross-border financial management.
Get the study: The Innovation Gap: Meeting the Challenge of Payments Modernization
- 42% of FIs cite failure to offer supplier portals as a key issue for corporate clients
Many companies involved in cross-border trade have created internal systems to manage areas such as cash flow and B2B forecasting, but few believe they do business well.
Online portals are considered the best solution, but most businesses need expertise to create them. The study found that 42% of FIs “cited the inability to offer supplier portals as a key issue for their enterprise customer experiences, with 15% reporting it as the most important issue. Common frictions faced by businesses of all sizes include poor working capital management due to lack of cash flow visibility at 34%, slow underwriting at 33% and lack of choice payment at 31%.
- 79% of FIs are currently working on solutions that will provide customers with a single view of cash for real-time cash flow management
Customization and flexibility are important features that accelerate international payments, whose complex flows require an integrated real-time view to maintain a unified financial picture.
“The PYMNTS research clearly shows that FIs need to focus on four specific areas of innovation to better address customer B2B issues. They should offer a centralized view of cash flow and liquidity, streamline business user authentications, simplify invoice reconciliation, and deploy faster vendor and vendor onboarding tools that can scale quickly with the addition of new businesses,” the study says.
- 31% of FIs say partnership with FinTechs is very useful; 14% think this is the best approach
Entrepreneurship is an important consideration in modernization projects, and just knowing that your organization needs the expertise of a partner shows significant willingness.
A significant share of surveyed executives consider the propensity to “partner with FinTechs on payment digitization as a key feature in solving B2B payment friction issues,” as 31% of FIs rated this attribute as “very useful” and 14% think it’s “most useful.”
Get your copy: The Innovation Gap: Meeting the Challenge of Payments Modernization