CHERRY HILL, NJ, Nov. 15, 2022 (GLOBE NEWSWIRE) — Corcentric, a leading global provider of payments, procurement, accounts payable and accounts receivable solutions for enterprises and midsize companies, and PYMNTS released a new report, ” Digitization Strategies: How CFOs are Prioritizing Digital Payments to Maximize Efficiency,” to address how current economic challenges are creating a new sense of urgency for chief financial officers (CFOs), who say they are prioritizing digital payments and process innovation to navigate business growth.
According to the report, to adapt to market changes, CFOs’ priorities and investments are changing. In fact, 87% say they plan to invest in one or more areas of payments and financial digitization, and 94% are already doing so. CFOs said the investments in digital technologies have already improved operations in fraud and risk management (83%), working capital and credit (77%), procurement (72%), accounts receivable (75%), accounts payable (72%), days sales outstanding ( 66%), and outstanding days with outstanding payment (49%). They depend on the financial benefits collected here to reinvest in innovation projects and business expansion.
The report is based on a survey carried out between 9-27 September 2022 by 250 CFOs from retail and manufacturing companies generating annual revenues from $250 million to more than $1 billion. Respondents said investments in financial digitization, particularly in AR, AP and fraud and risk management solutions, are valuable to the business because they 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 cutting costs.
“As the role of CFOs evolves, they continue to embrace more innovation and automation to keep their companies thriving, so it’s no surprise that they are planning more technology investments to grow their businesses,” said Matt Clark, President and Chief Operating Officer at Corcentric . “CFOs are recognizing that financial digitization has proven its worth, and they are continuing to advance their strategies to leverage 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 navigating the economic challenges of the past two years.
The most important reasons for success are investments in the following project areas:
- Modernization of processes for procurement (56%), working capital and credit (32%), AR (30%) and AP (28%).
- Improvement of payment processes in AR (51%) and AP (67%).
- Reduce costs in purchasing (21%) and working capital and credit (43%).
- Improving security for fraud and risk management (70%).
Technology innovation continues to be a priority and critical success factor for CFOs
Looking ahead, respondents indicate that their investments in digitization will continue to be a priority for businesses for widespread reasons, including:
- AP: Modernization of processes (23%) and improvement of payment processes (66%). In fact, 68% of companies that did not invest in AP previously are or plan to be in the next two years.
- YEAR: Modernization of processes (31%) and improvement of payment processes (48%).
- Fraud and risk management: Modernize processes (30%) and improve security (51%).
- Purchasing: Modernization of processes (61%).
- Working capital and credit: Modernize processes (33%), reduce costs (28%) and expand the business (26%). CFOs indicate a change in strategic investment in this area, with reduced costs falling by 15 percentage points in importance, while business expansion doubled.
“As CFOs develop plans to steer their organizations forward, they turn to the proven value of comprehensive, end-to-end digitization across the finance function,” explained Clark. “Working with CFOs, Corcentric has helped them prioritize investments in digital payments and financing solutions to achieve an end-to-end solution to spend smarter, optimize cash flow and drive profitability.”
To review the findings in the full report, click here.
About Corcentric
Corcentric is a leading global provider of solutions for payments, procurement, accounts payable and accounts receivable for enterprises and medium-sized companies. Corcentric provides software, consulting services and payments with a focus on reducing costs, optimizing working capital and unlocking revenue. To learn more, visit www.corcentric.com.
Corcentric media contact:
Chris Ehrhart
Head of Communications
[email protected]
(239) 261-4634
