Nothing slows down the free flow of commerce and payments like manual intervention.
And on Sunday (October 20), simplification of financial management processes through digital automation follows news that Bank of America is allowing businesses to lock in foreign exchange (FX) rates for up to one year. It has become a top priority for finance leaders.
As more businesses work to replace manual payment processes with automated and secure electronic solutions, today’s financial environment is focused on optimizing working capital, managing liquidity efficiently, and managing cash flow in real time. They are benefiting from complex network effects that give them more visibility than ever before. It’s bigger.
As digital transformation accelerates, one of the most powerful tools to reimagine financial operations is the introduction of application programming interfaces (APIs). APIs have become an integral part of the corporate finance ecosystem, enabling seamless integration and communication between different financial systems, enabling automation, and providing real-time data access. As APIs become simpler and more accessible, and as FinTechs increasingly collaborate with financial institutions, finance teams benefit from this, increasing their ability to perform strategic financial management functions and manage increasingly complex We are adapting to the changing financial environment.
This ongoing change is not only modernizing the way companies move money, but also redefining the role of treasury and treasury within large corporate organizations.
Read more: Real-time reality check: How digital payments are driving Treasury’s AI evolution
How simplified API adoption drives innovation
One of the main benefits of API integration for finance teams is the ability to access real-time data from banking and financial systems. Traditionally, finance teams relied on manual processes and regular data imports, often resulting in delays and data discrepancies. However, APIs allow teams to integrate data streams from various banking partners and financial institutions directly into their treasury management system (TMS), providing an up-to-date view of cash positions across all accounts and currencies. It will look like this.
“The most undervalued part of these financial organizations is the financial controller’s office and the backend of finance, where they receive reports at the end of each day and close the books in two or three. We need to be able to do that,” Cindy Turner, chief product officer at Worldpay, told PYMNTS.
API-driven solutions are also transforming the payments landscape for finance teams by increasing the efficiency and speed of payment processing. APIs allow treasurers to connect directly to payment platforms and banks, facilitating automated, real-time payment execution that aligns with strategic cash management goals. This feature greatly reduces reliance on traditional file-based transfers and batch processing, which often cause delays and inefficiencies.
Seamus Smith, vice president of FIS Group, told PYMNTS that automation “will free up CFOs to spend more of their time thinking about the future and growing the business.”
“Collections teams, for example, rely on timely and accurate information from sales and finance to effectively manage accounts receivable,” Smith added, “to analyze historical data and identify patterns.” and solutions that help businesses make more informed decisions are transforming finance. Team achievements.
See also: Treasury’s digital transition creates greater synergies with the finance function
Better financial management means better business growth
As API technology continues to evolve, finance teams will have more opportunities to leverage data-driven insights, optimize cash flow, and manage risk in a real-time, automated environment.
“The importance of the treasury function is definitely increasing and it’s definitely getting stronger in terms of versatility that needs to be considered,” Ole Matthiessen, global head of treasury management at Germany’s Deutsche Bank, said in an interview with PYMNTS. ” he said.
APIs allow finance teams to connect and integrate with multiple banking partners and financial platforms without the complexity associated with traditional banking systems. Open banking and API technology standardization trends are making it easier for businesses to link their financial management systems with banks, FinTech solutions, and other financial services, creating a more interconnected and efficient financial ecosystem. Masu.
“With the right strategy, midsize companies can leverage working capital not just to survive, but to thrive in a competitive global market,” Lauren Hewings, head of working capital solutions at Visa, told PYMNTS. The CFO and treasurer said: They are no longer satisfied with traditional working capital management methods. Instead, they are turning to digital solutions to increase working capital efficiency.
Read more: How APIs bridge modern and traditional B2B payments architectures
“Moving to digital solutions is becoming a key element,” says Hewings. “There is a mismatch between what CFOs and treasurers are looking for and what financial institutions are offering.”
According to PYMNTS Intelligence, top performers regularly employ strategies such as integrating suppliers into enterprise resource planning (ERP) systems to streamline payments and optimize cash flow visibility. got it.
Ambrish Bansal, Global Head of Liquidity and Cash Concentration Products, Citi Treasury and Trade Solutions Business ‘Can we do that?'” he told PYMNTS.
“I think the role of the Ministry of Finance is becoming more and more central. [the enterprise’s] Business strategy, growth strategy, expansion strategy and, frankly, sustainability strategy,” Bansal added. “The finance team plays a vital role.”
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Learn more: API, Application Programming Interfaces, B2B, B2B Payments, Bank of America, Cash Flow, Cash Flow Management, Digital Transformation, News, PYMNTS News, Financial Management, Working Capital
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