The digital shift of the early months of the pandemic made digital payments imperative for many businesses. Implementation is not only a challenge, but it can introduce new risks, ranging from failure to comply with national and international know-your-customer (KYC) regulations to transaction fraud. At the heart of smart digital payment management is consumer and bank data. Acquiring data properly, validating it, and managing it properly is key to successful digital payments.
In The 2022 digital payments guide for business payments, a PYMNTS and LexisNexis together, we look at the risks of payments digitization and the steps businesses can take to ensure compliance and long-term strategic growth.
Managing digital payments can be a pillar of growth for businesses, but only if payment processes are compliant, treasurer-friendly, and simple to integrate with critical enterprise resource planning (ERP) data. A savvy ERP strategy leverages big data to inform everything from workflow management to technology adoption and risk management policy, enabling organizations to optimize core business operations and support long-term fiscal goals. However, the success of any ERP initiative is entirely dependent on key business growth drivers, such as digital payment processes, working seamlessly.
Additionally, businesses need the right tools or third-party technology solutions to manage the sheer volume of financial data, especially banking reference data, that can make or break payment processes. Of the billions of bytes of data organizations generate and process each year, bank reference data is among the most difficult to manage manually and the most critical to business operations. Effective banking master data management requires a robust ERP platform with seamless integrations with payment services or, if manually monitored, constant vigilance and access to comprehensive and up-to-date global banking data.
Other key findings of the report include:
Key payment data changes often. Complete, accurate and easily accessible data is essential to risk management, and companies need to be able to use their most valuable payment data at all times.
Sanctioned banks can still initiate and receive transactions. Vendors and suppliers who do business with companies around the world can bank virtually from anywhere, which adds a measure of risk to every global transaction if controls are not in place.
FinTech adds complexity to compliance. As the rise of advanced financial technologies has made regulatory compliance more complex for financial institutions (FIs) and businesses, organizations need to be proactive in implementing compliance solutions early.
To learn more about how financial institutions and businesses can leverage ERP platforms to manage financial data and streamline digital payments, To download The report.