Integrating new technologies
The first step for many finance departments lies in automation tools. “If you’re moving to a world where things are fast-moving, you cannot rely on manual processes, especially when transactions flow in real time. Your back-end processes will need to be electronic and automated,” Sulabh says.
He believes one strength of the technology will be in tail-spend management, especially as larger businesses integrate it into their established procure-to-pay systems.
Benefits of real-time payments
For finance departments in businesses of all sizes, however, real-time payment dynamics offer new opportunities. These include visibility, the option to manage cash flow dynamically, and more certainty when decision-making.
“Through the click of a button, finance departments can see if a payment has come in or not, or what is scheduled to come in. They could decide to manage payment to be just-in-time, for example,” says Sulabh.
Ultimately, making payments in real time will give financial departments an edge. Equipped with more accurate and real-time information, Sulabh believes they will expand their strategic influence in the business overall. “They will have so much more insight and knowledge than they could from a paper-based process,” he notes. “And if they can put in place tools to centralise the data and available insight, they’re going to be making much more effective decisions more quickly.”