“Overnight, the conversation turned to ‘How do I take care of my customers and suppliers?’ and ‘How do I maintain my business controls when nobody is in the office?’” Chayt says.įor customers and suppliers, partnering with their bank for managed payables and receivables solutions can instill confidence among the firms they interact with-and not just during a pandemic. In addition to the promise of increased efficiencies and more actionable data, companies realized technology could help them navigate the challenges that they, their clients and their suppliers faced during a highly disruptive period. The COVID-19 pandemic accelerated the digital transition toward automated payables and receivables.
“As a result, they’ve been able to leverage new opportunities to monetize those data-driven insights.” “Ironically, companies are finding digital automation provides better, more frequent personalized outreach with their customers and suppliers,” Chayt says. Transaction data can also give companies visibility into which clients are slow to make payments and identify potential delinquency problems before they turn more serious. Those customers may be good targets for additional outreach, to deepen existing loyalties or expand relationships. “Having digital access to their own data stimulates their business growth and builds stronger decision frameworks within their company.”įor instance, a company could mine transaction flows to identify loyal customers or those who are ramping up purchases. “Our clients are moving to digital not only for payment efficiency but for data efficiency as well,” she says. Today, firms armed with new technology can gather and analyze the reams of data embedded in payment transactions for insights that can fuel growth, according to Bridgit Chayt, head of commercial payments and treasury management at Fifth Third Bank.
Companies are increasingly automating and digitizing key treasury functions, such as accounts payable and receivable, to increase efficiency and improve cash flows-but that only scratches the surface of potential growth-driving benefits.
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