How to approach financial automation in the digital age

Although a small part of a larger machine, automating invoice processing and payment workflows is quickly becoming a competitive advantage for businesses. Inaccuracies, insufficient experience, incomplete or incorrect data can lead to negative reputation and unreliability.

Automation represents transformative potential in every industry. In manufacturing, large-scale robotics is enabling faster and more accurate production. In the logistics industry, orders are processed faster and human errors are reduced. Across the retail industry, optimized inventory management systems are saving costs and increasing efficiency in the supply chain. In banking and finance, automating routine tasks has increased operational efficiency and reduced the risk of errors and fraud.

Automation will transform industries far beyond our imagination. Still, to successfully integrate automation, companies need a comprehensive strategy that considers the impact on employees, fosters goodwill, and aligns automation with long-term goals. Successful automation integration can separate leaders from followers in today's digital environment. Let's start where it matters most: finances.

Improving quality and user experience

Traditional manual invoice processing and payment workflows are time-consuming, error-prone, and inefficient, leaving much room for improvement. Businesses that still use manual processes are at higher risk of delayed payments and disruption of cash flow. Manual workflows are also susceptible to errors and inaccuracies, which can result in financial losses and coordination issues.

In this context, intelligent process automation and robotic process automation (RPA) are game changers. Already, industry leaders are demonstrating how automation integration can streamline the payment process from initiation to settlement, improving customer satisfaction and business results. Amazon Go has upended traditional checkout with a cashierless shopping experience. Starbucks' latest push into contactless payments is experimenting with geolocation-based identity verification for “scanless payments,” which allows drive-thru customers to use an app to pick up their phone. You will be able to pay without having to collect it. Serving more customers in less time has a positive ripple effect on customer experience.

Automation technology reduces human error, allowing finance and accounting departments to process payments faster and more accurately while reducing processing costs such as transaction fees, staff salaries, and technology costs. The overall effect can be dramatic. RPA and AI enable the integration of different payment systems, analytics, and messaging platforms to create a more cohesive and efficient payments ecosystem. By visualizing data from a central source of truth, finance and accounting departments can improve decision-making and strategic planning to better meet customer demands.

Increased transparency allows for more informed decisions

McKinsey found that digital payment penetration among Americans reached 78% in 2020, but there were systemic barriers limiting growth for the remaining group. Confidence in digital payments declined slightly. Almost half of consumers had never heard of or were not interested in contactless payments, so they believed such digital solutions had little value, security, or availability.

But while manual processes make payments difficult to track and monitor, digitization and automation make payment systems more transparent. By making your customers understand this, they are more likely to trust these new technologies. Businesses that can provide customers with open and honest communication through real-time updates and detailed information about payment processes, fees, and risks foster long-term trust.

One of the evolving technologies is blockchain. While digital payment solutions utilize encryption and tokenization to secure payment information, blockchain can further transform the system by providing a decentralized and transparent ledger of transactions. But that's not the only use case. Starbucks' mobile app tracks rewards, purchases, and loyalty benefits in real time, but the company also leverages Microsoft's Azure blockchain service to provide visibility into the movement of coffee across hundreds of thousands of coffee farms. , giving customers a window into where their coffee beans come from. , through real-time digital traceability. As always, increasing transparency requires taking customer service and convenience to the next level.

Improved convenience, security and competitiveness

Integrating automation into payment systems provides convenience, security, and competitive advantage in the digital age. Transactions are processed instantly, saving time and resources for businesses and customers alike. A user-friendly payment system that leverages automation technology to streamline operations, freeing up employees and leaders to free up valuable time and resources for critical thinking, innovative solutions, and other strategic initiatives. Automated integration into data analysis and visualization tools can help businesses identify trends and patterns to make more informed decisions.

But all this can only happen against the backdrop of robust security. Today's consumers rely on online payment systems, and while they expect hassle-free transactions, they also want to trust that online payment systems are secure and that their sensitive financial information is protected. Minimizing the need for manual data entry and reducing the potential for human error not only improves production quality and overall customer experience, but also increases the security of financial information.

Additionally, AI algorithms analyze payment patterns to identify potential fraud and increase security. Automation solutions must also protect mission-critical processes to reduce the risk of security breaches and data leaks, and can protect sensitive payment data with encryption, access controls, and secure data storage. . We conduct regular audits to identify and address vulnerabilities in our systems. Continuously updating our security protocols keeps us one step ahead of cybercriminals.

take your employees on a journey

Organizations must approach automation in a balanced, holistic, and transparent manner to ensure a smooth transition. Avoid automating faster than your company's growth rate and approach processes with a focus on transparency and empowerment. Involve your employees from the beginning, as employees who feel threatened by automation may resist it. Build a long-term strategy to transform roles so you can focus on higher-value work: upskilling your job, rather than eliminating it.

As certain tasks become automated, those new skills may include data analysis, financial modeling, strategic decision making, and more. Provide your employees with the education, resources, and opportunities to make informed decisions about their future within your organization. In this space, the only sure thing is change, so we all need to remain agile to leverage the automation revolution for ultimate competitive advantage.