CHERRY HILL, N.J., Nov. 15, 2022 (GLOBE NEWSWIRE) — Corcentricone of the world’s leading providers of payments, procurement, accounts payable and accounts receivable solutions for enterprises and midsize companies, and PYMNTS have released a new report, “Digitization Strategies: How CFOs Prioritize Digital Payments to Maximize Efficiency”, to address how today’s economic challenges present a new sense of urgency for chief financial officers (CFOs), who say they prioritize digital payments and process innovations to navigate business growth.
According to the report, to adapt to market changes, CFOs’ priorities and investments are shifting. In fact, 87% say they are considering investing in one or more areas of digitizing payments and finance, and 94% are already doing so. CFOs said investments in digital technologies have already improved operations in managing fraud and risk (83%), working capital and credit (77%), procurement (72%), Accounts Receivable (75%), Accounts Payable (72%), Sales Days Outstanding (66%) and Days Payable Outstanding (49%). They rely on the financial benefits recovered here to reinvest in innovation and business expansion projects.
The report is based on a survey conducted between September 9 and September 27, 2022 of 250 CFOs of retail and manufacturing companies with annual revenues ranging from $250 million to over $1 billion. Respondents said investments in financial digitization, particularly in AR, AP, and fraud and risk management solutions, are valuable to the business as they have helped sustain operations over the past two years . CFOs therefore expect future investments in working capital and credit to help their organizations focus on expansion, not just cost reduction.
“As the role of CFOs evolves, they continue to embrace more innovation and automation to help their business thrive. So it’s no surprise that they are planning more technology investment to grow the business,” said Matt Clark, President and COO of Corcentric. “CFOs recognize that financial digitalization has proven its value, and they continue to advance their strategies to take advantage of it. »
Fintech investments have proven beneficial over the past two years
According to the report, CFOs revealed that implementing digital technologies was key to successfully meeting the economic challenges of the past two years.
The main reasons for success are investments in the following project areas:
- Modernization of procurement (56%), working capital and credit (32%), AR (30%) and AP (28%) processes.
- Improved payment processes in AR (51%) and AP (67%).
- Reduced procurement costs (21%) and working capital and credit (43%).
- Improved security for fraud and risk management efforts (70%).
Technology innovation continues to be a priority and a critical success factor for CFOs
Going forward, respondents indicate that their investments in digitization will continue to remain a priority for businesses for widespread reasons, including:
- AP: Modernizing processes (23%) and improving payment processes (66%). In fact, 68% of companies that have not invested in PA in the past are either doing so or planning to do so within the next two years.
- AR: Modernization of processes (31%) and improvement of payment processes (48%).
- Fraud and risk management: Modernization of processes (30%) and improvement of security (51%).
- Purchasing: Modernization of processes (61%).
- Working capital and credit: process modernization (33%), cost reduction (28%) and business development (26%). CFOs report a shift in strategic investments in this area, with cost reduction losing 15 percentage points in importance, while business expansion has doubled.
“As CFOs build plans to move their organizations forward, they are looking to the proven value of complete, end-to-end digitalization across the finance function,” Clark explained. “Working with CFOs, Corcentric has helped them prioritize investments in digital payment and finance solutions to achieve a comprehensive solution to spend smarter, optimize cash flow and increase profitability.”
To review the findings of the full report, Click here.
Corcentric is a leading global provider of payment, procurement, accounts payable and accounts receivable solutions for businesses and midsize businesses. Corcentric provides software, consulting services and payments focused on reducing costs, optimizing working capital and unlocking revenue. To learn more, please visit www.corcentric.com.
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